Key Considerations To Startup Listing

India is seeing a boom in private investments in e-commerce and technology startups and a large number of funds have invested billions of US dollars in such online companies. Most of these private equity investors are expected to exit their portfolio companies through share listings, putting a spotlight on the sector and the potential candidates for an initial public offering (IPO).

Bankers expect them to explore overseas markets, mainly the Nasdaq exchange in the US, due to various regulatory requirements in India as well as the difficulty in finding valuation benchmarks on exchanges on which no comparable rivals trade. This has also motivated startups to externalize their business models to offshore jurisdictions, particularly Singapore.