India domestic IPOs to overshadow foreign listings

Author: Ashley Lee | Published: 18 Jul 2014

India’s capital markets have returned following the election of Narendra Modi last month. Domestic IPOs are expected – perhaps at the cost of foreign listings.

The largest Indian conglomerates have already taken advantage of the equity capital markets’ sudden strength , returning with qualified institutional placements (QIPs). Those can be executed quickly; IPOs take more time.

Since last September, when the Ministry of Finance released new regulations for direct offshore listings for unlisted companies, companies have been able to list onshore or overseas. But regulatory uncertainty and a strong home market mean that market participants expect more domestic IPOs.

"We haven’t yet seen anyone willing to bite the bullet and be the first to list under the new rules"

"The return of the Indian capital markets mean that we expect relatively fewer offshore listings," said Rajiv Gupta of Latham & Watkins.

There will always be sector-specific listings, he added. For example,...