Are unlisted companies giving listed ones tough competition?
Jan 25, 2025
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Unlisted companies are surging ahead, showcasing impressive growth that leaves many listed firms in the dust. The discussion highlights how these unlisted entities are not just keeping pace but often outperforming their listed counterparts in revenue and profits. This trend raises intriguing questions about the dynamics of competition in the market and its implications for the broader economy. A fascinating exploration into how these two segments of the business world interact and influence each other!
Unlisted companies are significantly outpacing listed ones in revenue and profit growth, showcasing their flexibility and investment strategies.
The relationship between listed and unlisted firms is essential, as IPO performance impacts unlisted investments while fostering market stability.
Deep dives
Unlisted Companies Outperforming Listed Ones
Unlisted companies are showing remarkable growth, outpacing their listed counterparts in both revenue and profit. A recent study highlighted that unlisted firms experienced an 8% increase in revenue for FY24, significantly exceeding the 1.7% growth seen in listed companies. Moreover, unlisted companies reported a 29% surge in profit after tax, compared to a 27% increase for listed firms. This difference can be attributed to the flexibility and risk-taking abilities of unlisted companies, allowing them to make substantial investments in capital assets, exemplified by a dramatic 58% increase in fixed assets within the aviation sector.
Interdependence Between Listed and Unlisted Firms
The dynamic relationship between listed and unlisted companies is crucial for understanding market fluctuations and capital flow. While unlisted firms thrive on innovative and long-term investments, the capital they attract often relies on the performance of the listed markets. For instance, the robust year of Indian IPOs in FY24 led to increased interest and investment in unlisted firms anticipating future public offerings. This interplay between both company types emphasizes the necessity of stability provided by listed companies, which fosters transparency and investor confidence, ultimately influencing the growth potential of unlisted firms.
In today’s episode on 25th January 2025, we tell you how unlisted companies are outpacing listed ones and what that means for industries and the economy.
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