Customer Interviews And Surveys

Hal Clyde Denison Limited

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About the survey

Investor Relations (IR) is playing an increasingly important role in today’s volatile world in enabling companies manage investor expectations. This survey aims to understand a wide range of current investor relations’ trends in companies across sectors in India. Our goal via this survey is to analyse and highlight the importance of IR as a strategic function.

This survey analyses and brings together findings from 5 companies.

Respondent’s profile

CEO/MD: 60% (3 Respondents)
Company Secretary: 20% (1 Respondent)
CFO: 20% (1 Respondent)

Questions

Do you have a dedicated investor relations officer?
Yes: 0%
No: 100%

What will be the ideal annual budget for IR at your Company?
Less than 5 lakh: 60%
Between 5-10 lakh: 20%
More than 10 lakh: 20%

Is there Promoter involvement in IR at your Company?
Yes: 40%
No: 60%

Have you successfully articulating your equity story to investors and analysts?
Yes: 0%
No: 100%

What do you think is the ideal way to engage with the investment community?
Plant/Facility Visits: 10%
Conference Calls/Webinars: 40%
One-on-one interactions: 40%
Analysts/Investor days: 0%
Roadshow/broker conferences: 0%

Do you agree that IR at your Company is a problem that needs to be solved?
Yes: 100%
No: 0%

Can you solve the discussed IR problem at your Company and don’t need a new solution?
Yes: 0%
No: 100%

Are you open to outsourcing IR for your company?
Yes: 100%
No: 0%

Conclusion

We live in a world that is constantly evolving and providing both vast opportunities as well as challenges. Businesses, their investors and by extension the IROs have also been in the midst of these rapid changes nudging them to reimagine the way they operate within the larger environment. While ease of access due to advent of internet, smartphones and social media has helped in quicker decision-making, this has also made investors susceptible to misinformation. The active role played by the market regulator and the level of scrutiny that the companies face due to presence of large institutional investors, proxy advisory firms and the various news media, further makes the job of an IRO more complex as compared to the previous decades. Besides these challenges, there are certain positive developments that also have a huge impact on how the IR function grows. Foremost amongst them is continued growth of large foreign institutional investors in the market who expect the same level of disclosure and information availability as seen in more mature markets.

These challenges and positive developments mean that the IR function is likely to continue to focus more on improving access for investors and longterm shareholder wealth creation than just being the face of the company. Looking ahead, we believe as the Indian financial markets become more mature and attract more long-term investors, the IR function would rightly cement its position as a strategic enabler.

Hal Clyde Denison’s IR Offering:

We’d like to help your company drive its IR agenda to a higher level of efficiency and effectiveness.

With over 5,000 companies listed on the Bombay Stock Exchange, competition for investor, analyst and media attention is strong, with the risk that un-nurtured relationships and low, or even no visibility with such groups, can result in a quoted company having limited access to these audiences and in turn low stock valuations.