Global investors, Indian startups press Modi for overseas listings By Reuters

© Reuters. FILE PHOTO: India’s Prime Minister Narendra Modi addresses a gathering earlier than flagging off the “Dandi March”, or Salt March, to rejoice the seventy fifth anniversary of India’s Independence, in Ahmedabad, India, March 12, 2021. REUTERS/Amit Dave/File Photograph

By Aditya Kalra and Abhirup Roy

NEW DELHI (Reuters) – Main buyers together with Tiger International, Sequoia Capital and Lightspeed have referred to as on India’s Prime Minister Narendra Modi to spur guidelines to permit corporations to record abroad for higher entry to capital, in line with a letter seen by Reuters.

India in September allowed corporations to record straight on overseas exchanges just like the New York Inventory Alternate or Nasdaq, however the authorities has but to announce guidelines required to manipulate such listings.

Calling it an “unfinished reform agenda”, some 22 buyers and prime Indian startups akin to food-delivery app Swiggy and on-line tutoring agency Byju’s wrote to Modi urging him to expedite the coverage.

“The present incapacity of unlisted corporations to faucet worldwide markets for elevating capital is … an obstacle to the expansion ambitions of Indian startups,” they mentioned within the July 29 letter.

Swiggy and Sequoia declined to remark. Different entities, in addition to Modi’s workplace, didn’t instantly reply to requests for remark.

The brand new coverage is seen as a shot within the arm for Indian unicorn start-ups valued at greater than $1 billion and the digital unit of conglomerate Reliance, which is eyeing a U.S. itemizing after elevating greater than $20 billion from buyers final yr.

However the letter comes when many are selecting to record in India.

China’s Ant Group-backed Indian meals supply agency Zomato had a stellar debut on Indian bourses lately, valuing the agency at $13 billion, whereas others together with SoftBank-backed ride-hailing agency Ola are additionally eyeing native listings.

“At the same time as some corporations are gearing as much as record in India, many others are eager to judge the choice of a world itemizing,” the letter mentioned, highlighting how corporations in different markets like america have a a lot larger market capitalization than in India.

The London Inventory Alternate, which is monitoring India’s coverage change intently, advised Reuters final yr it had been in talks with a number of Indian tech corporations on abroad listings. Such listings will current a possibility for a number of the world’s main exchanges to vie for India’s quickly rising startup corporations.

The Indian authorities nonetheless had been involved that abroad itemizing may imply that corporations attempting to find larger valuations by way of entry to a wider group of buyers would select to solely record overseas, hurting prospects of Indian markets.

The group of buyers and startups advised Modi such issues had been “unfounded” and that abroad listings will enhance curiosity of overseas buyers in Indian startups.

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