InvestorQ : With the government relaxing foreign listing guidelines, do you see more Indian companies listing abroad?
Dhwani Mehta made post

With the government relaxing foreign listing guidelines, do you see more Indian companies listing abroad?

Answer
image
Dilmini Mercia answered.
5 months ago
Follow

The announcement has just been made and we could the impact over the next few years. However, Grant Thornton appears to be immensely positive about this move and its likely impact on process of listing abroad. Grant Thornton believes that the recent relaxation of regulations for Indian companies to raise capital abroad could become a blessing in disguise.

In fact, Grant Thornton has estimated that around 100 Indian companies or even more are looking to raise billions of dollars by listing their companies in foreign capital markets. This could include capital markets across the US and Europe too although the US would still be the first port of call.

This could take a decade or so overall considering the additional legal and procedural formalities involved. Like the Chinese name, Indian companies would also seriously look at the opportunities arising from this foreign listing process. For Indian companies it would mean easy access to large capital pool and is also a prestige statement.

The reasons are fairly straight forward. Indian companies appreciate that going to customers across the world with the profile of a globally listed company could be a huge advantage in the emerging dispensation. That is salivating prospect for the Indian companies that eventually list abroad.

Of course, there is not much of a surprise about the standard suspects in the sector list. Grant Thornton expects the trend to be driven by sectors like healthcare, pharma, technology and biotechnology, which anyways have an appeal in these markets. Currently, there are around 40 companies listed overseas in various stock exchanges.

0 Views