Why do companies list on Stock Exchanges?

Why do most companies want to be listed on Stock Exchanges?

Rishika Mukherjee

Created on 11 Sep 2022

Wraps up in 7 Min

Read by 6.5k people

Updated on 12 Sep 2023

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Why do most companies want to be listed? Google says, “to raise funds,” and so would a regular retail investor. If only the poor investors knew what they do. 🤷‍♀️

Today, any VC can provide you with funds that you intend to raise from the public. Which is why, it would make no sense to get under the scrutiny of SEBI and exchanges by going public. Moreover, the cost of getting listed in India is somewhere around ₹8-10 crore! Now, although some companies benefit from free PR and market visibility through IPO, the more dominant reason is something else.

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Rishika Mukherjee

219 Posts

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Mukherjee is an avid reader and loves to write as much as read. She is the youngest of all but handles chores like a 50-year-old woman. She takes a lot on her plate and somehow, eerily manages to get the job done. As Hazel Grace stated, she could read a good author's grocery list, and so would Miss Mukherjee.