NSE Chief Ashish Chauhan Says Public Listing Helps Founders Raise Capital Without Losing Control

National Stock Exchange (NSE) Managing Director and CEO Ashish Chauhan has urged startups and micro, small and medium enterprises (MSMEs) to rethink how they view public listings, arguing that going public is one of the most effective ways to raise growth capital without surrendering ownership of a business.

Speaking at the JITO Incubation and Innovation Foundation's (JIIF) Foundation Day event at the NSE, Chauhan said many entrepreneurs hesitate to list their companies because they fear losing control. However, he maintained that public markets allow founders to access capital while continuing to steer their companies.

"When you list, you keep 75 per cent with yourself and offer 25 per cent to the market in the beginning. You can give more later. Control stays with you," Chauhan said.

Why Public Markets Matter for Startups and MSMEs

According to Chauhan, public listing offers far more than just fundraising opportunities. He said listed companies benefit from stronger governance standards, enhanced credibility among customers and investors, and improved ability to attract top talent.

These advantages can help businesses scale faster and compete more effectively, particularly in sectors where trust and visibility play a major role in growth.

Chauhan encouraged founders to view public markets as a strategic growth platform rather than merely a source of funding.

How Listing Can Unlock Higher Valuations

One of the biggest advantages of being publicly listed, Chauhan argued, is the valuation premium that profitable businesses can receive from the market.

He explained that a company earning an annual profit of Rs 2 crore could potentially achieve a market capitalisation of Rs 40-50 crore after listing. Such valuations can provide promoters with greater flexibility to raise additional capital, attract strategic partners and finance expansion plans.

Public markets, he said, reward businesses that demonstrate sustainable profitability and growth.

Listed Companies Gain a Powerful Expansion Tool

Chauhan also highlighted another often-overlooked benefit of listing: shares become a form of corporate currency.

Once listed, companies can use stock to acquire other businesses, bring in partners and incentivise employees through stock-option programmes. This can significantly strengthen a company's ability to expand without relying solely on cash resources.

He said this advantage becomes increasingly important as businesses look to scale operations and enter new markets.

Addressing Fears of Hostile Takeovers

A common concern among founders is that listing could leave their companies vulnerable to hostile takeovers. Chauhan sought to dispel these fears, stating that ownership and control remain with promoters.

He argued that founders retain significant influence over their businesses and that ownership cannot be forcibly transferred against their wishes simply because a company is publicly traded.

Focus on Business, Not the Share Price

While advocating public listing, Chauhan cautioned entrepreneurs against becoming overly focused on stock market movements.

"Your business is in your operations, not in the share price. The stock market is only a reflection of your business; it is not the business itself," Chauhan said.

He stressed that long-term share price performance ultimately reflects business fundamentals and profitability rather than short-term market fluctuations.

Founders, he said, should spend their energy building strong operations and sustainable profits instead of chasing artificial trading volumes or reacting to temporary market movements.

Thinking Bigger for Long-Term Growth

Chauhan also urged entrepreneurs to adopt a more ambitious mindset when planning expansion.

"If you are doing a business of Rs 10 crore or Rs 20 crore, you should be planning for Rs 200 crore and beyond," Chauhan said.

His message underscored the role public markets can play in helping businesses move from small-scale operations to large, growth-oriented enterprises.

Growing Role of India's SME Market

Chauhan's remarks come at a time when India's SME capital markets are expanding rapidly. The NSE's SME platform, launched in 2012, has helped companies collectively raise more than Rs 21,700 crore and achieve a combined market capitalisation exceeding Rs 2 lakh crore.

Meanwhile, JIIF Chairman Jeenendra Bhandari highlighted the foundation's efforts to strengthen India's startup ecosystem. He said the organisation has completed four incubation cohorts over the past two years and facilitated more than Rs 60 crore in startup investments. The foundation has also secured a Rs 5 crore MSInS grant and a Rs 2 crore SISFS grant to support innovation and entrepreneurship.

The Bottom Line

Ashish Chauhan's message to founders was clear: public listing should not be viewed as a loss of control but as a pathway to growth. By accessing public capital markets, businesses can secure funding, improve governance, attract talent, pursue acquisitions and scale more rapidly while retaining promoter control and focusing on long-term value creation.

(With inputs from ANI)