Indian businesses on global scale returning home for stock market listing

A large number of Indian businesses working on a global scale are returning home for listing on Mumbai bourses, given that Indian stocks are among the best performers in the world, according to Singapore-based legal experts.

Quick-commerce unicorn Zepto and fintech firm Pine Labs are among those that have shifted their holding company from Singapore to India, said experts at Rajah & Tann Singapore (R&T), one of the largest law firms that handled the two Indian-origin companies' move to Mumbai.

"Indian stock exchanges are one of the best as valuations are extremely high," said Vikna Rajah in his market trend observation as co-head of R&T's South Asia desk.

 

"The Indian stock market is one of the strongest stock markets in the world for value creation," Rajah told PTI earlier this week.

"It is interesting to see prospering cross-border businesses and higher entrepreneurial spirits between Indian and global markets, especially in line with New Delhi's 'Act East' drive focused on South East Asia and the Far East," noted Avinash Pradhan, the other co-head of R&T's South Asia desk.

"We have deep understanding and expertise to help structure business through legal processes between India and global markets," underscored Rajah, who is one of the over 1,000 legal experts at R&T working across Southeast Asia and China.

Pradhan sees increasing participation by Indian businesses in the region as well as ASEAN enterprises exploiting opportunities in South Asia's largest economy that is fast shaping up to be the world's third largest trading hub.

"These businesses are coming fully prepared backed by their country's law firms, given the growing complexity of trade amidst fast changing tax structures and the accelerated pace of technology adoptions globally," noted Pradhan, a lawyer of over 15 years.

Following India-China's fairly recent "friendship" move, Pradhan believes opportunities will increase considering the technology skills of the Indians.

Given the increasing multilateral and bilateral Free Trade Agreement (FTA) trends, there is a possibility of a similar freer trade pact between and India and China in the coming years, according to market monitoring analysts in the Far East.

"Trade policy makers in every country are working on market strategies, and we expect officials in Beijing and New Delhi as well as capital cities of ASEAN to exploit export-oriented opportunities," said a source, adding, "the business-focused work is in progress as it is going to be the Asian century."  Singapore is already hosting around 9,000 Indian companies, some with offices in Hong Kong, Tokyo, Seoul, and in Chinese trading cities Beijing and Shanghai.

The Association of South East Asian Nations (ASEAN), a grouping of 10-nation markets with a 630-million population, is a crucial trading partner for India, accounting for 11 per cent of its global trade, with bilateral trade reaching USD 122.67 billion during 2023-24, according to estimates.