Why Listed Companies Need Investor Relations Managers: Praphull Chandan Jha

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IR is a strategic management responsibility that must be fulfilled over and over again, especially for listed companies.

www.newsbarons.comShareholders become powerful. Investors are demanding transparent business information, regulators are forcing companies and developers to comply with RBI and SEBI standards, and all in all it becomes a tedious business experience for the company who feels that having a relationships section with investors on their website and downloading financial results and stock market communications are more than enough to address investors.

This has never been the case and certainly not in the current business scenario where shareholders and investors expect to communicate with them all the time, educate them, engage them and address their concerns, if any, before they go. make important business decisions.

Right now, shareholder activism in India is at its peak and at a very robust stage. Shareholders and now making decisions to reject CEO salary increases, cancel promoters ‘plans to write off their companies, challenge promoters’ decision to sell the company, oppose the appointment of independent directors, etc.

Shareholders are now only satisfied with multiple returns on investments, numerous folds in stock prices and handsome dividends. They demand more, they demand information, demand participation, they judge the personal performance of CEOs, CEOs and CXOs, they also keep a close eye on any merger and acquisition attempt made by the company without their consent.

It’s time to wake up.

Now is the time for promoters, board members and senior managers to realize the needs and demands of shareholders and begin to play an effective role in oversight, and to avoid expanding and to push unreasonable finances.

While shareholders are flexible to some extent, any delay in making the right decision can lead to regulatory non-compliance, loss of financial and market value, and job losses. crucial aspect of the business.

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Investor relations is a strategic management function.

Investor relations ensures that stocks are traded fairly and that no information or key information is released to increase the movement of stocks. A fair flow of information helps investors determine whether they are investing for the short or long term according to their needs. The Investor Relations function is an associated function of two of the most important departments of a listed company, the Secretariat department and the finance departments, and helps to communicate with investors, shareholders, government organizations and the wider community. the financial community.

The objective of the IR department within a company is to help investors make informed decisions in their actions concerning the equity of the company. The IR department does this by providing up-to-date information on the company’s operations, financial statements to current and potential shareholders, as well as third-party equity research analysts.

RI is a strategic management responsibility that must be fulfilled over and over again, especially for listed companies. It integrates compliance with finance, communications, marketing and securities laws and enables effective two-way communication between a company, its shareholders and the financial community.

How to build an investor relations strategy.

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Understand your shareholding: Research the investing styles of your shareholders to determine why they bought the stock and what might cause them to sell.

Consider a disclosure policy: A detailed disclosure policy controls the communications a company has with the investment community. Try to understand all of your company’s communication channels, and also make sure that the company spokespersons listed in the disclosure policy are suitable.

Develop an IR plan: The IR strategy should focus on the key messages, the targeted investors and the outreach plan. It is also very important to determine the right mix of investor conferences and to invite industry analysts to communicate and highlight the main achievements and issues.

Develop the positioning of investors: The main messages to the investment community in all your communications should answer the question “Why should investors buy shares of the company?” “. Develop a clear, financially oriented investment thesis that conveys the company’s value drivers.

Visit the IR website: Make sure your platform has all the features and information that investors typically expect on IR pages.

Ensure the execution of the IR: A company is assessed on the basis of financial performance and shareholder value creation and by regularly communicating these results to investors

Investor relations process:

• Financial and results-oriented communication
• Communication with stakeholders and analysts
• Relations with financial media
• Shareholder activism – Proxy campaign
• Shareholder perception audits
• Reputation management
• Non-aggressive sales promotion
• Compliance with the rules and regulations of the securities and stock exchange commissions with which the company is registered
• Present investor feedback to company management and board of directors
• Build long-term credibility with the investment community
• Creation of responsive capital markets at attractive terms for future funding

Praphull Chandan Jha is Head of Investor Relations and Strategy at PR Professionals Group.


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