June 15 marked an adventurous time of year for IR Magazine to hold its first awards in India. It marked not only the beginning of monsoon season, when torrential rains and humidity can make just traveling Mumbai’s varied, lively streets logistically difficult, but also the end of Ramadan, which saw thousands of locals come to the city to celebrate. The weather and festivities provided a fitting setting for one of the consistent themes of the day: that despite the stormy backdrop of India’s capital markets, there was reason to stop and mark the rapid growth of IR on the sub-continent.
At Mumbai’s Bandra Kurla Complex, around 100 attendees had time to meet, network and relax over a cup of chai, followed by a welcome to proceedings by Anand Manu, co-founder of the Investor Relations Society of India. Setting the scene for the day, he highlighted the spirit of co-operation that was crucial to making this inaugural Indian IR event possible.
Two economists then provided further context for the day’s discussions: Ritesh Kumar Singh, chief economist at fabric and fashion house Raymond Group, and Dharmakirti Joshi, chief economist for analytics firm CRISIL, provided a macroeconomic view of India’s economy, with an analysis of the potential knock-on effects of US President Donald Trump’s recent trade sanctions. Both maintained a positive outlook for the country’s rapidly growing economy and financial markets, though each noted a need to keep ahead of international matters as much as possible.
The first proper session took aim at the C-suite’s view of the IR function, and how those in the role could change internal perceptions. An IRO from a pharmaceuticals firm discussed the part he plays in maximizing senior management’s time, while an IR consultant spoke about moving the perception of the function from a ‘bag carrying’ role toward a more respected, critical function within the company. Both had plenty of tips for ways in which attendees could make themselves indispensable to their management.
After a brief coffee break, it was time to focus on the role of IR during a crisis. The forum heard from three IROs with differing experiences of fraught situations that required careful, transparent communication with the market. They concentrated on the importance of having a contingency plan in place for such situations – even if it clarified only which stakeholders should be included in a crisis management team – which external audiences to focus on, and making sure to use management and proxy advisers effectively.
A change of moderator brought with it the Indian installment of one of IR Magazine’s most popular panel discussion series: a Q&A with investors and the buy side. Two portfolio managers – one based in Mumbai, another in Hong Kong – gave different views of Indian companies’ IR, and how improvements could be made to suit local investors and those investing from overseas, respectively. The panel touched on the potential impacts of Mifid II on India’s capital markets, took a look at recent regulatory changes in India and examined the factors that make for a good investor relations officer. One investor noted that ‘transparency, reliability and flexibility’ made for the best mix of attributes, a view with which the panel agreed.
Over lunch, attendees took to heart another piece of advice from the previous session – to always network with your peers – with business cards and war stories traded with equal enthusiasm, and investors from previous sessions finding themselves in high demand.
Getting into governance
The afternoon began with an examination of the importance of ESG and how IROs could seamlessly integrate ESG issues into their disclosures to and interactions with investors. Governance won out as the topic investors were keenest to engage with issuers about, particularly given that many of India’s largest companies are privately or family owned in large part.
An IRO at a multinational car maker revealed how he used special ESG conference calls to communicate his firm’s sustainability strategy. Rather than an annual or sustainability report, he said these calls were what drove his best follow-up interactions with investors.
The final panel saw two multiple IR Magazine Award nominees discuss the lessons they had learned on the way to becoming successful IROs. One had taken a circuitous route via equity research, corporate finance and M&A; the other had arrived at his role after a long stint in finance at one of his firm’s subsidiaries.
Both spoke of the importance of investor outreach in their respective IR programs, and outlined some key changes they had made to their targeting and knowledge exchange initiatives to get higher-quality holders of their company’s stock on board. They also discussed the dangers of ‘over-sharing’: giving the investment community too much information or access to the detriment of other stakeholders. Both agreed that the best method for success involved being transparent but firm with pushy audiences.
Award winners
The stage was then set to name the best-performing IR teams in India, as identified by the IR Magazine judging panel’s analysis of more than 50 self-written entries. The excitement in the room was palpable, not only because the afternoon’s winners would walk away with a highly coveted golden IR award, but also because this was the first time many in the room would be recognized for their investor relations excellence.
Ultimately, it was information technology and consultancy firm Infosys that made the most headlines. The firm’s head of IR, vice president and financial controller Sandeep Mahindroo not only picked up the gong for best IRO at a large-cap company but also collected the best investor relations team award on behalf of Infosys. The company’s 2017 analyst day, though widely praised by the award judges, was not enough to win the award for best investor meetings, which was scooped instead by industrial conglomerate RPG Group for its investor conference.
Other closely contested categories included the prize for the best IRO at a small to mid-cap company, with many of India’s most exciting high-growth companies having one team member listed on a competitive short list. Ultimately Deepak Balwani, head of IR at Minda Corporation, took home the trophy; the judges declined to rank a second or third place due to the high quality of the entrants resulting in the category being very tightly scored. The best IR team at a small or mid-cap firm, meanwhile, went to tire manufacturer CEAT.
As the remainder of the nominees for the inaugural group of IR Magazine Awards – India picked up their certificates of excellence, and the various winners and their teams posed for victorious photos, there was a sense in the Sofitel conference room that the day might mark the beginning of a long-overdue Indian IR adventure. With IROs so committed to discussing best practice and improving the cachet of the profession in India, it seemed the country’s capital markets would benefit immeasurably from the efforts of the driven and accomplished professionals in the room, no matter how stormy the economic outlook.
This article was published in the winter 2018 issue of IR Magazine – the 30th anniversary issue of IR Magazine
