The International Financial Services Authority (IFSCA), the GIFT IFSC regulator, implemented the unified framework for listing of securities and other permitted financial products in August last year
Months after the GIFT City regulator published its final regulations for direct listing, companies are flocking to Gujarat for IPOs. They plan to list on the two GIFT City exchanges, India International Exchange (India INX) and NSE International Exchange (NSE IX).
Around 3-4 companies are set to launch their IPOs in India's first International Financial Services Centre (IFSC) and will file their initial draft prospectus in a couple of months, reported MoneyControl.
The International Financial Services Authority (IFSCA), the GIFT IFSC regulator, implemented the unified framework for listing of securities and other permitted financial products in August last year.
However, the report says there were some challenges that delayed the listings. Currently, NSE IX, a subsidiary of the National Stock Exchange (NSE), and India INX, led by BSE, offer derivative products on their platforms. The report says that limited investment bankers to oversee IPO operations for companies on the GIFT City exchanges were one of those issues.
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As per the current regulation, only unlisted companies that want to raise capital from foreign investors can list on the GIFT exchanges. However, SEBI is in the process of issuing operational guidelines for listed public Indian companies.
Among the other eligibility criteria, companies wanting to list on the exchanges must have an operating revenue of $20 million in the last financial year or average over the last three financial years.
The government says direct listing at GIFT City will allow public Indian companies, especially start-ups, to access global capital beyond domestic exchanges. This is expected to enable better valuation of Indian companies in line with global standards of scale and performance, boosting foreign investment flows. Companies will also have the flexibility to access capital in both Rupees and foreign currency from global investors. This initiative will particularly benefit Indian companies taking their operations abroad.
Another key benefit rolled out by the government last year was the relaxation of the minimum public float norm. For domestic listed companies, a minimum of 25% shares are required for public trading; however, the IFSC has allowed entities to access foreign capital by offering just 10% of stakes.