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Relaxation of Indian listing regime to boost flotations on London markets

Fidelity International is set to cut around 1,000 jobs globally, roughly nine per cent of its total headcount, the company announced today.
"Headcount reductions will be spread across all business lines and regions," a Fidelity International spokesperson said.

Flotations on London markets are set to rise sharply, driven by a flood of Indian companies listing in the capital, according to the chief of a leading Indian investment firm.

JPIN VCATS’ founder, Nayan Gala, expects India’s booming startup scene to take advantage of a relaxation to the country’s overseas listing rules.

“The UK will benefit [from these rules], as many… startups will look to go public in London – providing a boost to publicity, stock volume, and therefore stock value, as well as the firms that service these listings,” Gala said.

“There is also an increased chance that these companies may expand into the UK after their (hopefully) successful listing – again, giving the UK a further boost.”

An upcoming change to India’s Direct Overseas Listing Policy will allow companies to list on select overseas stock exchanges by issuing their shares to overseas investors, as well as allowing foreign companies to be listed on the Indian Stock Exchange.

Gala said Indian ‘unicorns’ – privately owned companies with a valuation of over $1bn – will look to raise capital on London’s markets to finance growth.

Gala said: “Startups in India have gone from strength to strength, receiving record-breaking capital and transforming this into both growth and returns on investors’ capital – ultimately producing 3 unicorns a month in 2021 alone.”