Rothschild sees more global firms listing Indian units next year

Core Insights - At least 10 multinational companies are expected to list their Indian units in Mumbai over the next year, driven by the desire for higher valuations amid India's rapid growth [1] - Initial public offerings (IPOs) in India have raised approximately $16 billion this year, with a significant portion coming from local units of global firms [2] Group 1: Market Dynamics - Companies are attracted to IPOs due to lofty valuations, as equities in India trade at a premium compared to most markets [1] - Listing locally is seen as a long-term commitment that enhances partnerships and boosts visibility, while also delivering superior valuations [2] Group 2: Investor Behavior - Greater domestic capital flows from retail investors have transformed the IPO landscape, allowing for both mid-sized offerings and multibillion-dollar transactions with confidence [4] - Local institutions, including asset managers and family offices, are increasingly acting as anchor buyers, setting pricing benchmarks, while foreign institutional investors are becoming price takers [4] Group 3: Upcoming Listings - Upcoming IPOs include ICICI Prudential Asset Management Co, which has initiated investor roadshows, and Apollo Global Management Inc is considering listing Tenneco Inc's India business [5] Group 4: Challenges and Considerations - Companies must guard against under-preparation, weak disclosure, and unrealistic valuation expectations, as many IPOs fail due to issuers chasing inflated numbers without ensuring business maturity [6]