Overseas equity issuances grind to a halt

Issues dry up due to boom in home market, stiffer rules

This year may go down as one of the rare instances when India Inc did not make a single equity issuance in the overseas market. A fundraising boom in the domestic market and tightening of the regulatory framework for overseas issues are responsible for this trend.

While domestic fundraising has always been the preferred choice for India Inc, it was usual for listed companies to issue equities overseas by  American or global depository receipts, known as ADRs and GDRs. Also, to avail attractive valuations, some domestic companies such as MakeMyTrip and Videocon d2h, have listed overseas by creating foreign holding structures. 

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