Several companies based in Tamil Nadu are stepping away from their traditionally conservative approach and are now embracing public listings. Erode-based Milky Mist and Chennai's Lalithaa Jewellery have already made the leap this year, drawing significant interest from investors. And more companies, such as Chennai-headquartered Garuda Aerospace and Sathya Agencies, are gearing up to go public in the coming months.
Typically, around three to four companies from Tamil Nadu list on the stock exchange annually. Over the last three years, names like Avalon Technologies Ltd., R. K. Swamy Ltd., Northern Arc Capital Ltd., Dr. Agarwal’s Healthcare Ltd., and Glottis Ltd. have ventured into the IPO market. This trend is largely due to a shift in mindset among company promoters who are beginning to recognize the advantages of public ownership.
Capital market expert Nagappan Valliappan explains this changing perspective, noting that the value of a company can significantly increase when a portion is shared with the public. More businesses are finding this realization compelling enough to consider going public.
Family dynamics are also influencing this shift. Many businesses in Tamil Nadu are now in their third or fourth generation, which often leads to internal disputes and divisions. Pranav Haldea, managing director of Prime Database Group, notes that going public can be a strategic move to navigate these issues, offering a way for businesses to sell out rather than face ongoing family conflicts.
Haldea also points to a broader trend across India where family-controlled businesses in smaller towns have traditionally avoided external investors. However, the success of recent IPOs has shown the potential for significant increases in valuation, creating a 'net worth creation effect' and stirring a sense of FOMO (fear of missing out) among other family-owned enterprises.
The capital markets have witnessed a surge in IPO activity over recent years. In 2023, there were 57 issues that raised ₹49,436 crore across India. The following year saw 91 issues bringing in ₹1,59,784 crore. The momentum continued in 2025 with 103 issues raising ₹1,75,914 crore. So far in 2026, 61 issues have raised ₹72,283 crore.
Companies that have gone public report benefits such as increased discipline and accountability. K. Rathnam, CEO of Milky Mist Dairy Food, emphasized the advantages of being a public company, stating, “The capital gives us the ability to invest in the next phase of growth, but equally important is the discipline that comes with being a public company.”
