Investor Relations Practice

Investor Relations Defined :
“Investor Relations is a strategic management responsibility that integrates finance, communication, marketing and securities law compliance to enable the most effective two-way communication between a company, the financial community, and other constituencies, which ultimately contributes to a company's securities achieving fair valuation."- NIRI, USA

IR Objectives:
• To keep co-owners informed
• A corporate marketing activity
• Creates information level playing field
• Good corporate citizenship
• Unlocks Value

IR Strategy:
• Defining and prioritizing the target audience
• Developing key messages
• Developing communication policies
• Modes and frequency of communication

IR Collaterals:
• Quarterly and Annual result releases and Investor updates
• Updates on important corporate and industry developments
• Concall transcripts
• Dissemination of reactions on major policy and industry issues affecting the company
• MDA in Annual Report

Active Dialogue:
• Financial media briefings
• Analyst meets
• Conference calls
• Facility visits
• One-to-one meetings / Road shows
• Regular feedback

Perception Research:
• To know the level of market interest and current perception amongst influencers,
investors and the entire financial community
• In-depth interviews through structured questionnaire
• Research portfolio – mix of select buy side/sell side analysts and fund managers
• Findings reveal market concerns, information gap and valuation drivers and help
evaluate the communication strategy

Key to Success in IR:
• Top management’s commitment and involvement
• Consistent and credible flow of information and communication
• Clearly articulated, credible business strategies
• Open discussion of financial results / expectations
• Regular contact with investment community
• Availability of spokespersons

Spectrum of IR Activities:

Identify Target Audience
• Sell-side Analysts
• Buy-side Analysts
• Fund Managers / Portfolio Managers
• Brokers & opinion makers
• Financial Media (Wires / Business Papers / Magazines / Electronic Media /
Financial Portals)
• Shareholder Groups
Establish IR Processes
• Prepare calendar of events
• Create communication collaterals
• Identify spokespersons for different constituencies i.e. media and financial community
• Establish standard IR operating procedures
• Enhance corporate website for better investor interface
• Constantly update sector analysts, heads of research, VPs, etc of brokerages and
funds with company information and developments
Direct efforts towards…
• Enhancing analyst coverage
• Bringing the company on the radar of analysts and fund managers tracking the sector
• Getting company’s participation in investor conferences and roadshows
• Getting the stock actively commented in the financial media
• Perception study at regular intervals
Carry on sustained IR activities
• Monitor shareholding and movement of institutional shareholders
• Target institutions that are more likely to own the company’s stock and hold it for
a longer duration
• Aim at having balanced investor base, by not ignoring retail investors
Spectrum of IR activities
• IR Counsel & Planning
• Feedback research
• IR Kit, brochures
• Fact sheet
• FAQs
• IR Updates
• Earnings Releases
• IR content for the Website
• Advise on Annual Report
• Perception Research
• Media Training
• Executive counseling
• Road shows
• Investor Presentations
• Earnings calls
• Media Relations
• Focused Targeting
• Crisis communication