Money Alpha Expo : Conference Programme

Sawhney opened by defining his firm’s proactive role in the capital markets. Rather than acting as mere transactional facilitators, he explained that Transique Corporate Advisors plays a much deeper role in the structural and valuation development of a company. They guide SMEs from the initial conceptualization of an IPO all the way through to their eventual migration to the main board, ensuring they are fundamentally sound and ready for public scrutiny.

To illustrate the transformative power of SME IPOs, Sawhney shared a compelling practical case study. He recounted pitching the idea of an IPO to a Tier-2 company two years ago — a company that was initially hesitant and unsure of how to navigate the public markets. Later in the panel (02:47:09), it was explicitly confirmed that this company is based out of Lucknow. Today, this same company is on track to launch what is expected to be the largest SME IPO in the country, aiming to raise over ₹200 crore. This highlights that massive capital-raising potential is not restricted to metro cities, but is highly viable for robust businesses in Tier-2 and Tier-3 regions.

A major concern Sawhney addressed was the short-sighted focus of some promoters and investors. He pointed out that the market dynamics have shifted; the era of guaranteed 100% “listing pops” (day-one gains) is over, with exchanges capping early gains and intense volatility resulting in massive sell-offs on the first day. He strongly urged promoters to shift their mindset away from celebrating day-one share prices. Instead, they must focus on long-term value creation, business management, and attracting investors who carry a long-term vision for the company.

Addressing the urgency many founders feel to go public, Sawhney advised a disciplined approach. If market conditions are highly volatile or unfavorable, he suggested that promoters should simply wait. There is no need to rush a public issue. Launching an IPO at the right time ensures a credible scenario where both the investors and the promoters can generate sustainable wealth.

Sawhney stressed that an IPO should be viewed as a stepping stone. By utilizing the raised funds effectively to grow the business and targeting an eventual move to the BSE/NSE main boards, a company builds immense credibility. Furthermore, if an SME can earn the trust and financial backing of institutional investors during its initial listing, those same institutions are highly likely to support the company in subsequent funding rounds at significantly higher valuations.

In his concluding remarks, Sawhney reflected on the incredible evolution of the SME capital market over the last four to five years. Previously, SMEs had no formal option to raise equity funds, but recently, this platform has generated massive capital. Importantly, he noted that the system has matured from a tool for quick listing gains into a platform that rewards long-term performance. It is no longer just for flashy tech startups; it is highly effective for traditional, hard-working sectors — like manufacturing — that generate real profits, pay taxes, and create employment.