For more updates follow Grant Thornton Bharat on WhatsApp
Overseas listing presents a perfect platform for mid-sized Indian companies with global ambitions. With access to larger and more diversified pools of capital, at a comparatively low cost, these companies can now become competitive globally and attract higher valuations.
Some of these global markets are highly sophisticated, for example, tech startups, listing on the US stock exchanges have a deeper technology investor ecosystem that understands the risks involved in startups and technology firms better.
In May 2020, under the Aatmanirbhar Bharat Abhiyan, the Government of India announced definitive measures to help Indian companies raise funds, including the direct listing in overseas markets. Once necessary changes are made to the current regulatory framework, the overseas listing is expected to enhance the competitiveness of the Indian companies in terms of access to diversified and cost-efficient pools of capital, a bigger investor base and better valuations. Key benefits of listings overseas are:
Grant Thornton’s team of experts in IPOs, listings and private placements work closely with clients during all stages of this journey.
Broader investor base, lower cost of capital, improved valuations, and brand visibility are key drivers for high-growth Indian companies seeking to list overseas. However, there is a need for a strong corporate governance framework, robust internal controls, and compliances for businesses to attract global investors in the overseas markets.
Companies with global aspirations and well-defined strategies for growth should consider listing overseas. Healthcare, pharma, cleantech and biotech companies will be among the early drivers of overseas listing. Advisors provide the right direction in terms of roadshows, due diligence checks and regulatory compliances.
Grant Thornton is a leader in preparing companies for a seamless transition to going public via a SPAC with robust service offerings across the SPAC lifecycle. Our specialists move at the speed of your need to meet accelerated timelines while acting as the glue to coordinate amongst the key players of the deal.
While the government has indicated its intent to allow Indian companies to directly list overseas, the increased market acceptance and investor interest in SPAC IPOs provide an exciting opportunity for Indian businesses to access global markets.
Insights on the latest emerging trends in the SPAC space and how to successfully leverage this route to go public. Experts believe that SPACs offer a better opportunity for early stage, pre-revenue companies to tell their story to the market with forward-looking projections. An Indian company considering the SPAC route should have a globally scalable business; it is advisable to have a valuation of at least US$1 billion to generate interest among US investors.