Shafaqna English– While India’s sizzling IPO market appears very attractive as foreign companies queue up to go public, the frenzy isn’t driven by a need to raise capital for growth in a rapidly expanding economy — rather, it’s about funneling billions of dollars back to their home offices.
According to data from Prime Database, an Indian market research firm, only one out of six foreign companies that listed their Indian subsidiaries in Mumbai since 2024 raised fresh capital. The other five structured their listings purely as secondary offerings (offer for sale or OFS), where existing shareholders sell their stakes to the public without bringing in any new funds.
Source: Reuters