The Background Information on the Client

Bafna Pharmaceuticals Ltd, a Chennai based multi-product pharmaceutical formulations company in diverse therapeutic segments, came to Prana as an IPO Communication assignment. Over its two decades of existence in Betalactum and non-Betalactum formulation spectrum, Bafna could successfully turn up as an ‘Export House’ with presence in markets like Sri Lanka, Ghana and Ukraine. Bafna was a fixed priced and small-sized issue and as an IPO proposition, believing in the strength and vouching on the prospects in the regulated markets like Europe and UK, Bafna decided to foray into these lucrative markets. Further, it also thought of strengthening its pan-India presence with the brand ‘Bafna’ by employing additional marketing mechanism. It was a redefining step for Bafna to enter overseas ‘stringent-norms driven’ market, especially when it was smaller in size. In order to cater to its expansion plans, unlike other peers, Bafna firstly added capacities to its plant facilities and then moved for fund raising exercise for Europe and UK market, mainly for brand building. Obtaining Medicines and Healthcare Regulatory Agency (MHRA) approval for such foray into the regulated market of UK and Europe was crucial, both for Bafna’s overseas business success and sustenance of its IPO plans. Further, Bafna had planned to tap domestic retail prescription market with due branding exercise. Prana’s IPO communication task involved positioning of Bafna by revealing the crux of its IPO objects to the media, analysts and prospective investors and highlight Bafna’s strength to make its expansion plans successful.   

In India, smaller IPOs validating the IPO objectives proposed by Bafna through right and timely devised communication strategy was the key challenge in Bafna’s IPO communication exercise. Bafna’s ambitious IPO plans indeed needed corroborative analytical, logical and acceptable justification through consistent communication, as it was crucial for wide acceptance of the IPO at the offer time. Various factors like the SME status of Bafna, its lesser presence in the domestic retail market, less brand visibility and obvious comparison with other mid-sized retail peers in the formulation spectrum were proving to be deterrent for IPO communication process. The pricing of the IPO based on its historic financial data and performance was also subduing Bafna’s invisible strengths while advocating the need of more funds through IPO route. Amid the SWOT analysis of the IPO proposition, the continuous, reliable, factual and material supply of information to all the stakeholders of the IPO through right selection of media mix became an inevitable communication task at appropriate levels of IPO proceedings. A real-time ‘Query Solving Approach’ coupled by reciprocal communication methods were the challenge in order to make the stakeholders aware about the hidden strengths of the issue. Prana had to give solutions on how to communicate right messages Bafna deserved.

Through extensive in-house analytical research on Bafna’s IPO proposition, Prana realized that through right justification, pronouncing the essentiality of objects of the IPO could only highlight Bafna’s contribution in the formulation business and validation of its expansion plans. In this context, Prana identified ‘Query Solving Approach’ as the best way to address media and analysts who were the critical for the IPO. Bafna was then provided with right and factual key messages that had intrinsic content value. These key messages justifying the objects of the issue made Bafna competent in handling media and analysts queries.   Prana had to unfold Bafna’s invisible yet catalyst strengths before the stakeholders. Timely story breaking, in-depth media interviews, IPO analysis, consistent appearances on electronic media and media penetration across geographies were certain techniques Prana adopted for its media communication strategies. Prana, on consistent basis, communicated with the media and analysts on Bafna’s inherent potential in terms of its production capacities, bright prospects in European markets - post MHRA approval, capabilities in CRAMs business, prospects in domestic retail prescription market and probable visibility of brand ‘Bafna’ in both domestic and international markets, etc. Prana made parallel media penetration in Western, Southern and Northern parts of India about the IPO through story breakings. Prana further decided to use electronic media extensively as a tool for real-time communication of key messages. Bafna was made to best utilize space and time factors on all electronic appearances.

Prana could gauge the impact of consistent flow of reliable information on the media and stock market analysts. Prana’s emphasis on clarification and justification of objects of the issue made many stakeholders change their perception about the IPO. It was proved that the space and time available on any media platform, especially the electronic media, could be extensively utilized for propagating right message that further impacts the target audience. Bafna, which was hitherto an unheard name for the media, suddenly witnessed many write-ups on its IPO in important national and regional publications, including the reputed electronic business channels. Even two important business channel conducted an extensive discussion on Bafna IPO based on one  ‘IPO Review Report’ produced by one eminent Research House recommending ‘SUBSCRIBE’ to the IPO.

In the end, Prana PR is proud to mention that we could help tell the full story of Bafna without straying out of the regulatory limits. This Rs. 25 crore IPO got the attention of media and other opinion leaders befitting the IPOs far larger in size. The entire communication effort was driven by the Prana PR team.

Overall Impact