Tarun Singh, founder and managing director of Highbrow Securities, emphasized that a company's entry into the public market should not be motivated by financial difficulties or market hype. He noted that presenting a company to the public is often seen as the highest point of development for a small and medium enterprise (MSME) or family business.
Speaking at the MSME Sparks 2026 event, which was held virtually from June 22 to 25 and concluded on June 26 at ITC Gardenia in Bengaluru, Singh shared experience based on working on over 150 IPOs since 2008, including the first SME listings on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
In Singh's view, true IPO readiness is not about achieving a certain revenue volume, but about the ability to answer why the business deserves to attract public capital and why now is the right time to enter the market.
Singh warned that investors can quickly recognize when management approaches the market out of desperation. If founders go to market solely due to a need for money, this shows up during any valuation discussions and in how they answer investor questions, which is an immediate red flag.
Instead, companies should proactively strengthen their financial performance, improve corporate governance, maintain regulatory compliance, and demonstrate stable results. An extremely important aspect is also having a clear investment narrative.
He added that any serious investor asks three questions: does this business deserve public capital, why now, and why this specific company and not someone else? Singh concluded that if these questions cannot be explained in simple terms, the company is not yet ready for an IPO.
Singh believes that founders must be able to articulate their IPO thesis in 90 seconds. If they cannot explain it to a non-specialist in such a short time, they are not ready for a four-hour roadshow with institutional investors. He stressed that investors buy not the past, but the founders' confidence in the future.
It was also recommended to test one's story on skeptics rather than surrounding oneself with people who agree with everything. Singh advised that every slide and every number in the presentation must answer the investor's question; otherwise, they only generate new questions. Founders who acknowledge risks and explain how they manage them demonstrate confidence, not weakness.
Singh emphasized that an IPO is not an exit, but an entry point into the realm of public accountability and price determination. For family MSMEs, he advised consolidating complementary businesses into a single, cohesive structure, running it transparently for at least three years, and starting IPO preparation approximately 12 months before reaching a key revenue milestone.
He also cautioned against mergers without a clear narrative, as consolidation must enhance the overall business story. Although regulations may require three years of existence, markets expect sustainable and promising businesses. In summary, Singh noted that fundamental principles remain unchanged regardless of company size: 'Whether it is NSE, Jio, or a small family MSME, the science is the same. The market rewards those who prepare in advance, consolidate wisely, and tell a clear story about the future.'
Stock market indices Sensex and Nifty opened in the red on Wednesday. The decline was triggered by renewed threats of tariffs on the pharmaceutical sector from US President Trump, as well as a sharp rise in oil prices amid escalating geopolitical tensions in the West Asia region.
The BSE Sensex index began the trading session with a drop of nearly 388 points, representing 0.50 percent from a level of 77,081. The index reached a low of 76,722.21, losing 748 points or 0.96 percent. Similarly, the Nifty 50 index fell by 90 points or 0.37 percent, opening at 24,097. This index, comprising 50 stocks, showed a minimum of 23,973.70, dropping by 214 points or 0.88 percent.
By 10:50 AM, both key indices were trading close to their daily lows: Sensex showed 76,832.77, indicating a decrease of 637 points or 0.82 percent, while Nifty was at 24,009.30, down 178 points or 0.74 percent.
At the sectoral level, the Nifty Pharma and Realty indices declined by more than 1.5 percent each. Declines were also observed in the Nifty PSU Bank, Financial Services, IT, Metal, and Oil & Gas indices. The only exception was Nifty Auto, which demonstrated a growth of almost 1 percent during the day.
In the broader market context, Nifty Midcap 100 and Nifty Smallcap 100 traded down by 0.65 percent and 1 percent, respectively. Meanwhile, the India VIX index rose to 12.94, increasing by more than 2.5 percent, signaling increased caution and volatility in the near term.
The Nifty Pharma and healthcare indices became the main laggards among the components of Nifty, leading to a nearly one percent drop in the main index. The fall occurred after US President Donald Trump announced a proposal to introduce a phased tariff regime on imported generic drugs aimed at stimulating domestic pharmaceutical production within the United States. The Nifty Pharma index dropped by 1.7 percent, reaching 25,639.70 during intraday trading.
Tushar Manudhane, Senior Vice President of Healthcare Institutional Research at Motilal Oswal Financial Services, noted that '90 percent of prescription generics are imported into the US, which effectively increases the tariff for everyone supplying the US market, and this is not specific to India.'
The rise in oil prices also contributed to the downturn in the domestic stock market. On Wednesday, prices rose by more than 1.57 percent, pushing Brent crude futures above $92.58 per barrel, while WTI crude futures increased by 1.34 percent, trading at $85.68 per barrel.
OMC stocks, representing state-owned oil companies including Bharat Petroleum Corporation, fell by 1.52 percent to 314 rupees per share, Hindustan Petroleum Corporation decreased by 2.13 percent to 398 rupees per share, and Indian Oil Corporation lost 0.77 percent, settling at 142 rupees on Wednesday after Brent crude prices jumped to $92 per barrel.
On Wednesday, the rupee opened weaker against the US dollar. The national currency weakened by 10 paise against the US dollar, reaching 96.34 compared to Tuesday's close at 94.24 per dollar.
Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP, stated that 'traders continue to monitor the participation of the Reserve Bank of India through public sector banks to smooth out volatility. The central bank seems to allow gradual adjustment, preventing erratic movements.'
V. K. Vijayakumar, Chief Investment Strategist at Geojit Investment, believes that the ongoing conflict between the US and Iran and the rise in Brent crude prices will put pressure on markets, despite positive news in other areas. He added that 'market declines create opportunities to buy fundamentally sound stocks. Broader market superiority may continue in the short term.'
Rajesh Palvia, Head of Research at Axis Direct, noted that technically the market continues to trade cautiously below the 24,300 mark. He added: 'Sustainable growth above this level could revive momentum towards 24,500–24,550, while immediate support is at 24,100. A decisive break below this level could trigger further weakness towards 23,950. Any easing in crude oil prices would significantly improve market sentiment and serve as a trigger for a stronger recovery.'
