Despite IPO rush, unicorns chase global direct listing for higher valuation

Indian laws permit listing on international bourses through indirect listing of equity shares through the American Depository Receipt/Global Depository receipts (ADR/GDR)

A successful listing by Zomato and a pipeline of IPOs by unicorns that plan to raise Rs 26,000 crore may look enough to persuade start-ups to list in India, but not really. Despite these successes, some in the industry believe that the players and investors in the Indian start-up ecosystem still lack understanding of their business models. Many believe that international stock markets can give them better valuations.

In March 2020, the Cabinet had approved foreign direct listing (without having to list in India). But detailed guidance has yet to come as there has been no clarity on the imposition