Listing a company in an overseas market is a long journey. Whether you want to go global now or later, our teams of experts can empower you and show you the way forward.
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:
- Broader investor base: Listing overseas enables access to a larger pool of international investors, allowing companies to diversify their investor base.
- Improved valuations: Indian companies gain access to specialized investor classes who are able to better value securities, thus improving valuations. This is especially for emerging high-growth companies in technology that may not be profitable.
- Brand visibility: Overseas listing enhances brand awareness in various developed markets such as US and Europe. The overall brand recognition for companies like Infosys, Wipro, ICICI, HDFC Bank, etc., at the global stage is visible.
Grant Thornton’s team of experts in IPOs, listings and private placements work closely with clients during all stages of this journey.
Conversation #1: The Big Opportunity for Indian Companies
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.
Conversation #2: Insights for Corporates
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.
Over 100 Indian companies will go for an overseas listing in the next decade. From an entrepreneur’s perspective, this is an opportunity to think global. The ability to go to your customers with the profile of being a company listed on a market that they understand and trust, is huge.Vishesh C. Chandiok Chief Executive Officer
Overseas listing is an excellent option for Indian companies to do a capital raise. Its key benefits include broader investor base, improved valuations and brand visibility. However, businesses need to carefully evaluate, plan and craft out their strategy to ensure they are able to make the most of listing overseas.Raja Lahiri Partner
Experts decode the what and how of overseas listings
What does listing overseas mean for India companies and how does it impact them?
Special purpose acquisition companies (SPACs): Lifecycle solutions for “the express IPO”
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.
- Plan on SPAC structure and process to merger
- Execute audits under PCAOB standards
- Tax structure assistance
- Conduct buy-side due diligence (financial and operational)
- Communicate regulation S-X requirements, conform disclosures
- Prepare pro forma financial
- information – address merger accounting issues
- Prepare MD&A / risk factors / market risk and other disclosures
- Determine target readiness to report and operate like a public company and assist in the following areas:
- Vendor due diligence – financial, tax and commercial due diligence
- Corporate governance
- Financial reporting
- Tax, IT and Human Capital
- Fairness opinions
- Analysis of tax structuring from Indian Regulatory framework
- Assist in preparation of PCAOB compliant financials and audit process
- SOX assessment and SOX readiness
- Execute audits under PCAOB standards
- Assistance in executing merger and acquisition
- File form 8-K (Super 8-k) with pro- forma financial information, as needed
- Assistance in follow-on offerings
- File subsequent Forms 10-K and 10-Q with appropriate disclosure of acquisition
- Additional public company remediation issues including:
- Ongoing SOX readiness assistance
All you need to know about SPACs
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.
Conversation #3: Rise of SPACs
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.