A new perspective: Global financing strategies for firms incorporated in India

Abstract

International Monetary Fund’s (IMF) World Economic Outlook (WEO) report update, released in late January 2015, forecasted that India is going to become the world’s fastest growing economy by 2016- 17, ahead of China . It projected a growth rate of 6.5% for India and a growth rate of 6.3% for China in 2016-17 . With a bright macroeconomic outlook of the Indian economy, India is set to take-off on a faster growth trajectory. Moreover, according to a report “The World in 2050” by “pwc”, India has the potential to become the second largest economy in the world by 2050 . All of this is fueling a need for large structural reforms by the government of India in order to promote entrepreneurship, private sector participation and start-up culture. In the past few years, India has seen a large number of start-ups coming up with innovative solutions to solve the day-to-day needs of the customer; and a few of them getting a valuation of more than a billion dollars. Currently, most of the money invested in these start-ups come from angel investors, private equity and venture capitalists. Looking 10 years down the line, these investors will try to go for an exit through an Initial Public Offering (IPO) route. In the near future, start-ups and established private companies looking for further growth through expansion will need a large amount of fund. This project is aimed at looking at the three key global financial markets, namely, London Stock Exchange (LSE), NASDAQ and Singapore Stock Exchange (SGX) and finding the listing requirements for raising equity fund at each of these three stock exchanges through an IPO route.