Are stock exchange rules a deterrent for cash-hungry Indian companies?
While finding a way through India’s complex listing rules may certainly be a challenge, primary listings by companies of quality – such as the parent of IndiGo airlines – seem to be swamped by keen investors. IndiGo, which has made punctuality and efficiency its hallmarks, has been profitable over the past seven years. This has translated into a successful initial offer. But will markets recognize this when trading in the company’s stock begins?
The truth of the matter is that investors remain wary as initial offers in India have often underperformed when they have hit the markets. Yet as recent activity shows, neither this nor onerous listing rules have deterred some cash-hungry companies from tapping India’s capital markets. Will this continue without changes being made to the country’s listing rules to make the India stock markets more attractive?
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