India Mulls Allowing Local Firms to List on Foreign Exchanges, Including London Stock Exchange
India is reevaluating the possibility of permitting domestic companies to list on foreign exchanges, including the London Stock Exchange, according to Finance Minister Nirmala Sitharaman. This move could provide Indian startups with access to foreign capital for expansion.
The London Stock Exchange, known for its significant tech-focused listings, is one of the exchanges under consideration. While India had initially explored the idea of allowing overseas listings in 2020, it was put on hold. This reconsideration aligns with India’s ongoing efforts to help local companies gain access to broader capital markets and achieve higher valuations.
Currently, the Indian stock exchanges are predominantly dominated by financial services, consumer goods, energy, and material firms. However, a recent analysis by Mirae Asset projected a disproportionate growth in tech stocks on the Indian exchanges in the coming decades.
As Indian startups contemplate going public, they may prefer exchanges where investors have a deeper understanding of their business models and are more comfortable with the risk profile associated with technology companies.