What is Roadshow in IPO?
Written by Dev Sethia
3 min read | Updated on November 28, 2025, 16:11 IST
Road Show in IPO
The Roadshow is now an integral part of the IPO process for the reason that it provides a way for companies to market themselves to potential investors worldwide. Companies that intend to issue shares through an IPO are competing with other similarly positioned companies in the marketplace.
Roadshows will begin to influence how investors perceive a company and may significantly affect the level of interest (demand) investors will have in that company's shares prior to an offering becoming available for purchase.
During the roadshow period, senior management, along with the syndicate of underwriters, travels to the significant financial centers where they will meet with numerous potential investor groups.
What is an IPO Roadshow?
An IPO Roadshow can be considered a "Dog and Pony Show" as it serves as a way for companies to gauge investor perception of the underlying fundamentals and potential for the company's success. The findings obtained from the IPO Roadshow are used to assist in setting the IPO price.
In its simplest form, the IPO Roadshow provides a way for company representatives and Company Underwriters to meet with Institutional Investors, Fund Managers, and Analysts to generate interest in their proposed Initial Public Offering (IPO).
During the IPO Roadshow, representatives provide information to potential investors about their Company's business model, financial position, projected revenues and overall growth strategy.
Representatives of the Company will use the presentations conducted during the Roadshow to help persuade and encourage potential investors to invest in the IPO. This process will provide momentum and form an initial impression of the Company before it goes public.
Who Is Responsible for the Roadshow in an IPO?
The investment banks that underwrite an initial public offering (IPO) primarily take on the roles of planning and carrying out the roadshow for that company. Preparation includes the creation of all materials needed for each presentation and the coordination of the logistics of the entire IPO process.
The presentations are generally given by senior executives of the company, such as the CEO, CFO, or founding partners and the investment bankers structure each engagement to have the greatest positive impact on investors.
An additional responsibility of the investment bankers is to analyse investor feedback after each presentation to help estimate demand for the company's shares.
The key objective of the IPO roadshow is to attract investor interest, instill confidence in the investors and create a strong institutional demand for the shares of the issuer so that the IPO is well-subscribed.
Essential Elements of a Roadshow in IPO
A well-structured IPO roadshow includes several critical components, each designed to deliver a clear and compelling picture of the company to prospective investors.
Presentation
Senior executives present an overview of the company’s history, business strategy, market opportunity, competitive environment, financial track record and future growth prospects, as well as other critical information.
Individual Meetings
In addition to the group presentations, companies hold individual meetings with large institutional investors, which allow investors to ask questions about and get clarification on the company’s strategic direction as well as other concerns specific to them.
Locations
A roadshow usually covers more than one financial centre in order to reach as many institutional investors as possible. Typical roadshow cities include Mumbai, Singapore, London, New York and Dubai.
Schedule
Typically, the roadshow occurs several weeks before the IPO launch to generate interest and create a positive feeling about the upcoming subscription period.
Promotion
Companies and their underwriters promote their IPO roadshow by using multiple channels of marketing which may include direct mailing campaigns, meetings with potential investors via telephone or in person, electronic promotional efforts and in some instances, through media marketing to increase awareness.
Financial Information
During the roadshow process, a company provides investors with extensive financial information, such as Audited Financial Statements (AFS), Future Growth Projections, Profit Margins and Financial Performance, Operational Overview, etc. Companies must provide this level of disclosure to enable investors to make informed decisions based on data.
Legal Information
In addition to disclosing their financials, companies also provide potential investors with a complete set of legal information regarding Risks, Uncertainties, Regulation and Business Challenges. Legal information helps the issuer comply with the applicable regulations and helps investors determine the potential risks associated.
Advantages of a Roadshow in IPO
While the most recognised benefit of a roadshow is the ability to generate awareness and enthusiasm around the upcoming issue, several other significant advantages contribute to its importance:
Access to a Broader Pool of Investors
The Roadshow provides access to a broader base of international investors who would otherwise have little or no opportunity to participate without the formal participation of the issuer.
Relationship Building Opportunities
Through direct interactions, management teams establish long-term relationships with institutional investors, which prove valuable even after listing.
Effective Company Showcasing
Many companies will use Roadshows to describe what they do well, what their business model is, what their competitive advantages are and where they are going in the future.
Helps Set the IPO Price
Investor feedback gathered throughout the roadshow significantly influences the final pricing of the IPO, helping underwriters arrive at a fair value
Risk Mitigation
When a company participates in a Roadshow, it has the opportunity to respond to questions, concerns and doubts during the Q&A portion of the presentation. By providing adequate responses to these, the Company reduces perceived risk and instills investor confidence.
Feedback
Collecting feedback from potential investors is the most vital component of the roadshow process. The feedback received during the roadshow provides essential insights to underwriters to help determine pricing and messaging for the final IPO.
An initial public offering (IPO) roadshow is one of the primary actions involved in going public for a business. This is an opportunity for an investor to assess a company’s future and for a company to present itself in its best light while receiving constructive criticism from investors on its product offerings and its recent activities.
When executed correctly, an IPO roadshow will generate excitement and create a feeling of legitimacy and demand in institutional investors, thereby aiding in making an IPO successful.
About Author
Dev Sethia
Sub-Editor
a journalism post-graduate from ACJ-Bloomberg with over three years of experience covering financial and business stories. At Upstox, he writes on capital markets and personal finance, with a keen focus on the stock market, companies, and multimedia reporting. When he’s not writing, you’ll find him on the cricket pitch
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Upstox is a leading Indian financial services company that offers online trading and investment services in stocks, commodities, currencies, mutual funds, and more. Founded in 2009 and headquartered in Mumbai, Upstox is backed by prominent investors including Ratan Tata, Tiger Global, and Kalaari Capital. It operates under RKSV Securities and is registered with SEBI, NSE, BSE, and other regulatory bodies, ensuring secure and compliant trading experiences.