Indian companies can directly list overseas soon: FM
Nirmala Sitharaman Friday said domestic companies would soon be allowed to directly list their securities on overseas exchanges in specified jurisdictions, expanding capital-access opportunities for businesses in India that is poised to dwarf Germany and Japan and become the world’s third-largest economy in a few years. The stage-gate process will involve an initial listing on the International Financial Services Centre (IFSC) at the Gift City in Gandhinagar. Later, they will be permitted to list in seven or eight specified overseas jurisdictions.
“I had said in May 2020, that the direct listing of securities by Indian companies would be permissible in foreign jurisdictions. Now, I am pleased to announce that the government has taken the decision to enable the direct listing of listed and unlisted companies on the IFSC exchanges,” Sitharaman said. Allowing more overseas investors to tap into India’s growth story will also boost the valuations of domestic companies.
“This is a major step forward and will also facilitate access to global capital and result in a better valuation for the Indian companies,” the minister said. Amisha Vora, Chairperson & MD, Prabhudas Lilladher, said: “Globally, and particularly in the US, some of the Indian businesses are getting much better valuation and wider investor base compared to India. Obviously, it is a large pool of opportunities.
«Considering the fact that the Indian economy is on an upswing now, it will allow Indian companies to attract more growth capital. Also, the decision will have great potential to boost the Indian startup industry,» Vora said. At present, Indian companies are not allowed to directly list their equity shares on foreign stock exchanges without listing in
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