UNLOCKING POTENTIAl

Public listing presents a great opportunity for Indian marketing agencies looking to scale faster and unlock value

- ASHISH SINHA & REEMA BHADURI

GOING public isn't just about raising funds—it's about transformation. This is true of the vast plethora of companies that take the IPO or initial public offering route to grow and thrive. Likewise, can an IPO help Indian marketing agencies expand?

“An IPO enables marketing agencies to access capital for expansion, acquisitions, and technological advancements,” explains Samir Bahl, CEO - Investment Banking, Anand Rathi Advisors. Listing on the stock market enhances credibility, making agencies more attractive to high-value clients and multinational brands, he adds.

Globally, top advertising giants such as Omnicom, WPP, Publicis, and Dentsu have successfully leveraged public markets to fuel growth. Omnicom's $13-billion acquisition of Interpublic is a prime example of how public capital can drive large-scale mergers and strategic expansion.

A recent report from rating agency CRISIL states that the sector as a whole grew at a CAGR of 4.6 per cent, going up from around Rs 77,700 crore in fiscal 2019 to about Rs 93,100 crore in fiscal 2023. This outpaced the global integrated marketing communication (IMC) sector, which expanded at 3.9 per cent during the same period, highlighting a quicker recovery from Covid-19 setbacks. Driven by the rapid rise in internet subscribers and the strong performance of digital advertising, the industry is projected to grow at a 13-15 per cent CAGR between 2023 and 2028, reaching Rs 1,70,000-1,80,000 crore.

“This rapid growth trajectory presents a compelling case for Indian marketing firms to list publicly, allowing them to scale faster and tap into new business opportunities,” Bahl notes.