India’s new platform hoped to boost start-up IPOs

Author: Ashley Lee | Published: 27 Aug 2015

Market participants have feared that India’s most promising tech companies would list abroad due to local exchange rules. It’s hoped that a new regime will encourage them to stay at home

The country’s start-up industry is considered one of its most promising, with companies such as Snapdeal and Flipkart receiving international recognition. According to Bain & Company’s 2015 India Private Equity Report deal volume last year grew by 14%; that was driven by the consumer technology sector.

But it was nearly impossible for those investors to exit via local stock markets due to regulations’ focus on promoters. Rules issued in June by the Securities and Exchange Board of India (Sebi) might help by creating an entirely new platform for high-growth companies.

"One of the issues is that over the past decade, a lot of private equity investment has come into this country, but the only exit available...