Corporate Governance Before IPO: Why “Founder-Led” Cannot Mean “Founder-Controlled?”

This is Part – VII of the Capital Market article series.

Introduction

The journey from a privately held, founder-driven enterprise to a publicly listed company is among the most consequential transitions a business will ever undertake. Going public isn’t just about raising capital but a radical reordering of accountability. It forces founders to share ownership with a broader body of shareholders. Indian capital markets have witnessed explosive growth in primary market activity, particularly through the SME IPO segment, and increasingly, institutional investors and retail participants are scrutinising not just the numbers on the offer document, but the quality of governance underpinning those numbers.