Businessnewshubb
Advertisement
  • Home
  • World
  • Business News
  • Markets
  • Startup
  • Contact Us
No Result
View All Result
  • Home
  • World
  • Business News
  • Markets
  • Startup
  • Contact Us
No Result
View All Result
Businessnewshubb
No Result
View All Result
Home Markets

It Is Not Good To Take IPOs As Surrogate For Next Round Of Financing, Says Narayana Murthy

January 8, 2023


Opinions expressed by Entrepreneur contributors are their own.

You’re reading Entrepreneur India, an international franchise of Entrepreneur Media.

Narayana Murthy, Indian billionaire and founder of Infosys, on Friday said, Initial Public Offerings have been regarded as a surrogate for the next round of financing by startups and this is not a good thing. He was speaking at the India Global Innovation Connect, a global conference on startups.



Narayana Murthy twitter handle

“IPOs have been taken as the surrogate for the next financial round and it is not good as it comes with tremendous responsibility. There are so many people who have very little money and they have put faith in us. It is very important for us to give them a suitable return. But today the entrepreneurs are being in a jam with pressure from venture capitalists and looking at IPOs as the next level of financial round,” said Murthy in a statement, while speaking about the discussion he and another co-founder of Infosys had before going for the IT major’s Initial Public Offering.

“Investors always expect the earnings or stock price to keep going up. Having an IPO is not fun. Think of the poorest retail investor before deciding on an IPO as you have the responsibility to redeem your pledge by giving them the returns,” he further added in the statement.

The India Global Innovation Connect, held in Bengaluru, was a two-day annual meeting to foster and promote technological innovation in India by discussing the issues and policies involved, identifying the openings and challenges brought by disruptive technologies, while creating a channel of interaction between technology developers and business end-users.

Commenting on the over estimation of markets, he said, “We have traditionally or by habit, overestimated the markets and market size. Also, we probably don’t have good market research companies that can give us accurate estimate of the market opportunity. This results in stagnated revenues while costs keep inching up and that disadvantage has added to the woes of the startup industry.”

Murthy also said, “Transparency is not about disclosing good news, but it is about revealing the bad news. So, it is always better to disclose the bad news about a company early and proactively.”

Narayana Murthy, also known as the father of the Indian IT sector, established Infosys Limited, an Indian multinational information technology company. According to reports, Infosys is the second-largest Indian IT company in 2020 by the revenue figures. It also became the fourth Indian company to cross $100 billion in market capitalization.



Source link

Previous Post

Experts Predict Record Highs for Precious Metal – Bitcoin News

Next Post

AI regulation is coming. What’s Canada’s approach?

Next Post

AI regulation is coming. What’s Canada’s approach?

What each streaming service has up its sleeve in 2023 • TechCrunch

Four-day week: Which countries have embraced it and how’s it going so far?

SOL up 22% as ADA Hits Highest Point Since November – Market Updates Bitcoin News

The Sound Crafters

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Tinder goes ultra-premium, Amazon invests in Anthropic and Apple explains its new AirPods

by admin
October 1, 2023

It’s that time of the week again, folks — time for Week in Review (WiR), TechCrunch’s newsletter that recaps the...

Techstars Toronto celebrates 100 direct investments as an accelerator

by admin
October 1, 2023

The organization is also welcoming an even mix of Canadian and international companies to its 2023 class. Techstars Toronto announced...

Portugal puts national airline TAP up for sale

by admin
September 30, 2023

Europe’s major airline groups, such as German Lufthansa, already have their eye on TAP’s privatisation ADVERTISEMENTPortugal's government wants to sell...

Kick streamers consider leaving over CEO’s comments in a sex worker ‘prank’ stream

by admin
September 30, 2023

Streamers are leaving Kick en masse in protest of the platform’s lack of safety guidelines, after a prominent creator streamed...

business-news-hubb-white

© Business News Hubb All rights reserved.

Use of these names, logos, and brands does not imply endorsement unless specified. By using this site, you agree to the Privacy Policy and Terms & Conditions.

Categories

  • Home
  • World
  • Business News
  • Markets
  • Startup
  • Contact Us

Newsletter Sign Up.

No Result
View All Result
  • Home
  • World
  • Business News
  • Markets
  • Startup
  • Contact Us

© 2022 Business News Hubb All rights reserved.