India's capital market may become more globalized with Hyundai's IPO.
If other MNCs list Indian arms, there are further benefits for domestic investors in addition to the pool of reliable listed companies. India may end up being a preferred market for EME companies.
If other MNCs list Indian arms, there are further benefits for domestic investors in addition to the pool of reliable listed companies. India may end up being a preferred market for EME companies.
There would only be a maximum outflow of $3 billion from India upon the repatriation of the capital, hence there would be no negative effects on the country's foreign exchange reserves or exchange rate. The possible advantages greatly exceed the possible disadvantages.
It Expands Domestic Investors' Excellent Choices
The public offering would benefit the Indian investing public, who have been increasing the valuations of the listed companies in their investment universe. This universe consists of a small number of companies that are deemed worthy of investment, as well as some questionable entities that simply add artificial intelligence to the company's name and send out WhatsApp messages to everyone describing the exciting new field of artificial intelligence and the fortunes that can be made by jumping on the wave early. With access to strong research and development resources in its overseas parent, investors would have the opportunity to own a portion of the second-largest automaker in India.
There would be an increase in business for merchant banks, brokerages, corporate law firms, rating agencies, investment pools, and sporadic analysts, all of which are part of the Indian stock market ecosystem. That is definitely a plus.
Is There Going to Be a Repercussion?
Will more international corporations list their Indian limbs in order to profit from the skyrocketing values of the Indian market, as presented by a successful Hyundai IPO? Will these capital raising efforts give India's aspirations for capital account convertibility more impetus? Is it possible for India to grow into a financial hub for Asian and African businesses, utilizing both foreign and domestic investment pools to raise money and India as a hub for capital allocation both domestically and internationally? This is, after all, what occurs when a business lists in New York or London and makes an offer for shares.
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