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Tag: stock exchange

  • How is a Company Listed on NSE or BSE? – The Complete Process

    Everything is business. Well, it is true, just look around you and you will see multiple examples of a corporation selling something. We are all covered with businesses and it is efficient.

    Having businesses is efficient because it provides us with things that we want. In other words, they provide us with something of value. Otherwise, we would have to make everything on our own which would be inefficient and time-consuming and practically impossible. So businesses make markets efficient and society a better-managed entity.

    When a business turns big, I mean really big, then it needs to scale accordingly. Scaling in India is a very hard process because of different types of people everywhere. Most companies are primarily limited in nature and at their inception. This means that they operate mostly on private capital but at some point in time they need more funds than their private capacity. Thus, when a company successfully pulls off the magic of scaling then happens the true magic. It goes on and lists itself as a public limited company that now can make money from people to scale and fuel other activities.

    Not to mention, the listing process may seem easy and simple, the fact is that it isn’t. This is an article about how a company lists itself in India. There are majorly two important exchanges in India, namely NSE and BSE. Read on to find out how a company is listed on NSE and BSE.

    What is Listing?
    Why do Companies Go Public?
    What is a Stock Exchange?
    The Process of Listing (Initial Public Offering)
    Prerequisites for Listing on National Stock Exchange
    Prerequisites for Listing on Bombay Stock Exchange
    FAQ

    What is Listing?

    Every company which operates in a market of high demand has a good scope of growing and scaling. From the inception of a company, most companies are privately limited. Private limited means that these companies are funded privately, or the source of the capital is just normal private people or organisations behind the promoting chair. Hence, they operate on a limited capital that they can privately afford to fuel the operations at that company.

    Some companies, however, go ahead and become big national companies that need huge cash flows to fund their activities. At the point when companies become big and quite popular in a nation, the promoters or the chair people will be needing more capital.

    There can be many sources of funds to be considered, as a loan, or issuing debentures or selling stakes etcetera. One of the most famous ways to raise capital is to list the company on a stock exchange.

    In corporate finance, a listing refers to the company’s shares being on the list of stocks that are officially traded on a stock exchange. Thus, listing means that anyone from the public or a retail investor can now take part in a company by buying its shares. The general public will be buying a company’s shares to earn capital appreciation or dividends.

    Why do Companies Go Public?

    A very valid question that may arise in your head is, why do companies go public? There can be many reasons why a company chooses to go public. It depends on the entrepreneur running it on how he/she is willing to go about raising funds. The most common and eligible reasons for a company to go public and the list itself is given here –

    1. Fund Capex from internal accruals
    2. Raise a Series of funding from another PE (Private Equity) fund
    3. Raise debt from bankers
    4. Float a bond (this is another form of raising debt)
    5. File for an Initial Public Offer (IPO) by allotting shares from authorised capital
    6. A combination of all the above

    Let us go into some detail about how these reasons arose in the first place.

    Capex requirements

    Let us first understand the term Capex first. Capex is made up of two individual words, that are capital (Cap) and expenditure (ex). Capital expenditure is that form of expenditure that is required to fund the management and acquiring of fixed assets. Fixed assets are those assets that are fixed in nature that will pay benefits after a year or so. Thus, capital expenditure is spending money on fixed assets that are not to be converted into cash quickly.

    They include land, building and machinery. So we can conclude, Capex expenditure is the expenditure that a company incurs for growth in business. This long term growth expenditure has to be fuelled from somewhere, that is why companies go public.

    Provide an exit for the company’s early investors

    After the process of listing is done, the shares of the listed company go around in the market and are traded freely. When this situation arises, any existing shareholder can exit the company by selling his/her shares. That existing shareholder could be one of the promoter, anger investor Private equity funds or venture capitalists.

    They can use this opportunity to sell their shares in the stock market. Thus, by selling the shares or stake that they own, they can exit the venture and thus exit the initial investment they made in the company. However, they can also choose to sell shares in multiple parts and slots. There have been many successful and famous exits in India like that of Kunal Shah from Freecharge.


    Avoid paying interest and other finance charges

    When a company chooses to go public, it avoids taking any sort of loan. The reason is that taking loans is hefty work, it also comes with much financial burden and high-interest rates.

    So many entrepreneurs refer to selling stakes or ownerships in the form of shares. The best way to do that is to be listed. The listing makes a company’s shares trade freely in the market and makes space for funds that the company needs to grow. That too happens without paying any form of interest and any other sort of financial charges.

    Reward employees

    There is a thing called “Employee stock option plan” or ESOPs. They are awarded to employees who are early in the venture and/or are outstanding with their work. They work as an incentive for employees who work really hard to make a successful venture.

    Once the company is listed and shares start trading freely, it makes space for more ESOPs. They are awarded to employees to keep the work motivation high and construct a better work environment. A few examples where the employee benefited from ESOP would be Google, Infosys, Twitter, Facebook etc.

    Improves clarity

    As a company goes public and gets out of its private cocoon, it raises its status. Being a listed entity in a stock exchange is definitely not a small thing, it makes the company stand in the limelight of investors. Which interests people more in getting to know about that company. This will eventually create a positive impact on the company in its future prospects.

    What is a Stock Exchange?

    When we discuss ‘listing’ and all the technicalities of listing, it is extremely crucial to talk about stock exchanges. Whether you are a person trying to list your company or a person willing to invest his/her money with the company, one entity that you both have to work together with is the stock exchange. So, what is a stock exchange?

    Let us take one example to know clearly what a stock exchange is. Imagine the Kirana store near your house, or a supermarket or a shop of essentials that has a lot of items in its store. Just like a Kirana store is a store for items, a stock exchange is a marketplace for equities. It is a place where buyers and sellers come together to complete trade and settle transactions.

    The stock market is where everyone who wants to transact in shares goes. Transact in simple terms means buying and selling. It is impossible for a stock to be traded without being listed on the stock exchange. Thus, the main purpose of a stock market is to facilitate equities trading.

    Trading is buying and selling of securities. In India, there are two main stock exchanges. The names of these stock exchanges are National stock exchanges and Bombay stock exchange. Let us read a little about them.

    National Stock exchange

    NSE was incorporated in 1992. It was recognised as a stock exchange by SEBI in April 1993 and commenced operations in 1994 with the launch of the wholesale debt market, followed shortly after by the launch of the cash market segment. IT is the leading stock exchange in India. Located in Mumbai, Maharashtra and is owned by some leading financial institutions, banks, and insurance companies

    Bombay stock exchange

    BSE was established in 1875. It was Asia’s first and the fastest stock exchange in the world. It is called the fastest stock exchange as it operates at a speed of 6 microseconds. It was established over 143 years ago, and BSE has helped the country to grow its capital market by ensuring a smooth flow of equities. Though it is now known as the Bombay stock exchange, it was established as “The Native Share and stockbrokers association” in the inception year of 1875. In 2017 BSE became the first listed stock exchange of India.

    The Process of Listing (Initial Public Offering)

    Now we will discuss the cherry of the cake, the process of listing. It is also known by the name of initial public offering because it is the first time (Initial) when the shares will be offered to the public. This is a very strict process and both the National and the Bombay stock exchange take it very heartedly. It goes without saying at this point that the company which is trying to list itself has to follow dedicated guidelines of the desired exchange. However, the most common checkpoints to be ticked are listed here –

    Appointing a merchant banker

    Merchant bankers are also called Book Running Lead Managers (BRLM)/Lead Managers (LM). The work of a merchant banker has diverse actions. It includes conducting some efforts to check all the legal compliances at the company filing for the IPO and issuing a due diligence certificate.

    The Lead Manager has to work closely with the company to prepare the DRHP. DRHP stands for draft red herring prospectus. He also has to underwrite shares, which is agreeing to buy all the unsold shares. He then has to help the company to reach a decision on a reasonable price band of the offering. Thus, these are all the major functions that a merchant banker does.

    For example, The merchant banks (book running lead managers) for the issue are Morgan Stanley India, Goldman Sachs (India), ICICI Securities, Axis Capital, JP Morgan, Citigroup Global Markets India and HDFC Bank.

    Applying to SEBI with a registration document

    Not to mention that everything at a listing is done through the rules of the securities exchange board of India. After getting the work done by a merchant banker, you have to pitch a registration document to SEBI. That document should contain what the company does and what is the motive of the listing along with all other mandated information. After all the process, the company should look for an affirmative response from the regulating body to go ahead and issue a DRHP.

    DRHP

    DRHP of Zomato
    DRHP of Zomato

    DRHP stands for Draft red herring prospectus. It is a disclosure document that describes information about the IPO to the general public. It contains a lot of information about the company and the issue price and that is often too deep in finance terminologies. The most important and imperative information that is present in a DRHP is as follows –

    1. Estimated IPO size
    2. Everything about the shares that are to be issued
    3. The risk involved in the business
    4. Why the company wants to go public and how does it plan to utilise the funds
    5. Revenue model and all sorts of expenditure
    6. Complete financial statements
    7. Management relevant information

    Marketing the IPO

    After DRHP is issued and is made public, it is important to float some marketing about the IPO. The company would want to reach the maximum audience of investors for the purpose of its public offering. So they take support of print media and other sorts of media to market the IPO more.

    Fixing the price band

    Fixing the price band is super imperative when preparing for an IPO. The price is the only number which the people would see first. So, it is important to set the number not too high and not too low to attract the right amount of people on the board of directors. This is helmed by the existing shareholders and is helped by experts like merchant bankers. Once the price band is fixed, that becomes the base on which the company is listed on the stock exchange.

    Book building

    Book building is the process of capturing and recording investor demand for shares. For example, if the price band is between Rs.100 and Rs.150 then the public can choose. They can choose what is the right amount per share that the company deserves. The process of book building is to collect these price points along with respective qualities of shares and demand. Book building is perceived as an effective price discovery method.

    Closing date

    After the book building process is done and completed, it is said as the closing date. Generally, it is open for two to three days and maybe more in some exceptions. Thus, then the price point is selected which has the most bids from investors. That price becomes the listing share price of the company.

    Listing day

    Paytm Listing Day
    Paytm Listing Day

    Then comes the day when the company actually gets listed on the stock exchange. That becomes the day when the shares start to be traded freely in the market.

    When the shares are being bid, they lay a foundation for future selling values. This happens when investors choose the desired price from the given price band. This whole arrangement around the date of issue is known as the “Primary Markets”. After the initial bidding has stopped and the stock gets listed on the stock exchange, the share starts to trade normally like any other listed company. This situation in this share is known as the “Secondary Markets”.

    Once the stock transitions from primary markets to secondary markets, it gets traded daily on the stock exchange. People start buying and selling the stocks regularly and normally like any other company.

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    Prerequisites for Listing on National Stock Exchange

    There are many checkpoints that one has to fulfil before getting listed. Some of the most needed and crucial prerequisites are –

    • The paid-up equity capital of the applicant shall not be less than 10 crores and the capitalization of the applicant’s equity shall not be less than 25 crores.
    • The Issuer shall have adhered to conditions precedent to listing as emerging from inter-alia from Securities Contracts (Regulations) Act 1956, Companies Act 1956/2013, Securities and Exchange Board of India Act 1992, any rules and/or regulations framed under foregoing statutes, as also any circular, clarifications, guidelines issued by the appropriate authority under foregoing statutes.

    Prerequisites for Listing on Bombay Stock Exchange

    There are many checkpoints that one has to fulfil before getting listed. Some of the most needed and crucial prerequisites at the Bombay stock exchange are –

    • The minimum post-issue paid-up capital of the applicant company (hereinafter referred to as “the Company”) shall be Rs. 10 crores for IPOs & Rs.3 crore for FPOs.
    • The minimum issue size shall be Rs. 10 crores.
    • The minimum market capitalisation of the Company shall be Rs. 25 crore (market capitalization shall be calculated by multiplying the post-issue paid-up number of equity shares with the issue price).

    Conclusion

    In this article, we got to know why a company goes public, the needs that make a company think about listing itself. We read about the stock exchanges in India. The two most important exchanges are the NSE and BSE, the national stock exchange and the Bombay stock exchange. They lay the foundation of stock markets in India. Then we read about the process of how a company is listed in a stock exchange.

    After all these discussions, we can say that companies get listed, mainly to fund their Capex (Capital expenditure) requirements. This helps a company grow and get out in the market of more people. If you want to invest in a fresh new IPO then you must read the DRHP that is the draft red herring prospectus. It is super important for an investor to know where he is investing. In this modern world, one thing to make sure of is that your money should grow faster than inflation.

    FAQ

    What happens when a company gets listed?

    When a company gets listed it can raise additional funds by issuing its shares on the stock market.

    Can a private company be listed?

    No, a private company cannot go public. It will first have to convert itself to a Public Limited company, then only it can be listed on the stock exchange for trading its share.

    How long does it take to IPO?

    The IPO process depends on many factors but it typically takes six to nine months for the company to complete its public debut.

  • Aladdin Software Managing $21 Trillion: The Investment Management Giant

    A business is not just about buying and selling a product or service. It is much more than that. For a business to run properly, everything needs to be on point, for that management is necessary.

    In fact, it wouldn’t be wrong to say that management is necessary for every step of a business. The most important factor in this is to manage the financial assets, risk, and other investments of the business.

    From financial planning to look after bonds and equity of investors, it includes everything. Now, we all know business and risk go hand in hand. Therefore, in a business apart from investment management, risk management is also required.

    Risk management is all about recognizing and controlling those venturing threats that can affect the organization’s financial assets. It is mostly done to protect the company from harm and its future. Risk management makes the work environment safe.

    Now, thanks to technological advances, this also can be done by software. This article talks about the biggest investment and risk management software, BlackRock Aladdin.

    “Wealth is only a benefit of the game of money. If you win, the money will be there.”

    -Paul Getty

    About Aladdin Software
    How does Blackrock Aladdin Work?
    Interesting Features of Aladdin
    Top Companies that use Aladdin
    FAQ

    What is Blackrock Aladdin?

    No, as the name suggests, it is not related to Aladdin and the magic lamp from the Arabian Nights. Although the work it does is not less than that of a genie fulfilling wishes. Aladdin (Asset, Liability, Debt, and Derivative Investment Network) is a system whose work is to keep an eye on the markets and stop anything going wrong.

    It connects people and technology together to manage funds.  It is part of BlackRock, Inc an American global, Investment Management Company. This system was found after BlackRock’s was founded in the year 1988. In the year 2000, Aladdin was introduced as a system for investment management user

    This software works with thousands of computers for 34 hours and is continuously striving to manage the financial ecosystem of the world.

    Interestingly, Aladdin was first created to handle BlackRock’s business. Now, apart from BlackRock, it is used by different clients of BlackRock’s to manage their investments.

    Since the financial crisis in 2008, the demand for Aladdin has surged all over the world and it has now become one of the most important parts of the investment management industry in the world.

    How does Blackrock Aladdin Work?

    The system is involved in portfolio management to risk management; it’s all about providing a smooth investment process to the client with the help of a number of computers and people. With the tools required for portfolio management like trading, operation, and accounting, it gives out proper risk analytics.

    Aladdin gives out powers through its tools to the user so that they can communicate efficiently and if any problem arises, they can solve it quickly during the investment process.

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    Interesting Features of Aladdin

    Some of the features that make Aladdin different and unique are:

    • Over 55,000 investment workers are connected with Aladdin and depended on it.
    • It has more than 240 clients all over the world.
    • Thanks to the existence of this brilliant software, it eliminates the need for paperwork.
    • Eradicate excessive repair costs of machines.
    • This software provides the facility of trading bonds without the need of a middleman.
    • The software manages the wealth of some of the biggest companies.
    • The software contains a centralized database.
    • Aladdin contains a climate risk reporting app, that notifies if there is any risk that can be caused by climate change to their portfolio.

    Top Companies that use Aladdin

    Genworth Financial

    This is an insurance company founded in the year, 2004 by Dave Reedy. Aladdin manages Genworth Financial, along with eFront, another software that manages the alternative investment, it keeps an eye on risk management and asset allocation of the company.

    Fannie Mae

    Fannie Mae is an enterprise that deals with mortgage financing. It was founded by Franklin D. Roosevelt in 1938; its main motive is to create a sustainable housing finance system. In 2015, Fannie Mae associated itself with Aladdin.

    Macquarie

    The global financial service deals with asset management, wealth management; principal investment were founded in 1969 by Stan Owens. Macquarie has taken up Aladdin in the team for their asset management.

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    Conclusion

    The capability of the software Aladdin by BlackRock can be seen since the 2008 financial crisis. It has become the world’s most powerful risk management system and some of the largest enterprises are dependent on it. Needless to say by managing $21 trillion and counting, it is ruling the investment management industry of the world.

    FAQ

    Is Aladdin a Part of BlackRock?

    Yes, Aladdin is an electronic system for investment management by BlackRock.

    Who is the CEO of BlackRock?

    Laurence Douglas Fink is the CEO of BlackRock.

    Which companies use BlackRock Aladdin?

    Genworth Financial, Fannie Mae, and Macquarie are some of the top companies that use BlackRock Aladdin.

  • Why are most Indian Startups suddenly going Public in 2021?

    At one point while growing a startup, every startup founder must have dreamed of is applying for an IPO. Who doesn’t wants some extra funding to grow their startup?. The Indian startup industry is growing at a fast pace. And Many startups are buckling up to apply for the IPO. But why now? Why are so many startups going public in 2021?. Let’s find out

    If you are just as curious to know, follow the article

    What is a Startup?
    What is an IPO?
    Following factors you can consider before going Public
    Why are Startups going public in 2021?
    Pros and Cons of Registering for an IPO
    What happened When Zomato went public?
    List of startups that have opted for IPOs in India
    FAQ

    What is a Startup?

    So, you hear this word floating in and out of conversations, much to an extent these days.

    • Startups are usually founded by one or more entrepreneurs and their company is in its initial stages of business.
    • These entrepreneurs involved in building startups believe that there is a demand for a certain product or a service and want to make it better by developing it.
    • The funding for these usually involves getting money from family or friends.
    • Startups need capital, so they are also on a lookout for backers to invest in them.

    What is an IPO?

    IPO stands for Initial Public Offering

    • Companies need capital, so they raise it in the forms of IPO and shares from public investors.
    • People have a point of view that stock prices increase after an IPO.

    Following factors you can consider before going Public

    • There is a buzz in the market about your Startup.
    • The company has been financially strong for the last three years and is making good profits.
    • You hear about your company quite often.
    • The company holds a strong vision.

    We are observing a trend here. Not only Indian tech startups are going public, but almost every startup is getting in the waiting list to go public in 2021.

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    Why are Startups going public in 2021?

    Money circulation by Central Banks

    The Central banks are pumping new money into circulation in the hopes of tackling the aftermath the pandemic has left the economy in.

    Where is this cash ending up?

    The way for this money is paved to the path of the financial markets, mainly stocks. Now that means many of the giant institutions have plenty of money floating in so that they can invest in. Which leads us to another question: Where? These institutions now have the power to invest in IPOs.

    Startups like Zomato, Nykaa, PayTM, Delhivery, some of which have already been made public and some that are gearing to go public, have the intuition that they can catch the interest of these investors.

    It is becoming, a regular thing now for public valuations to overtake the private ones. Many people chip in, thinking that what they invest in will see growth in the future. The shares are rapidly growing, so if your startup is waiting to go public. There is no better chance and time than now to grab the opportunity.

    Possibilities of recovery

    The other part of the story is that many say that with stocks going up to the skies. With the investors and the Indian public pooling in money for the vision, your startup holds even if you have landed into the mess of running into loss. There is a chance of new money coming in. And the value of your startup will be much more than you expected.

    Registrations are easier than before thanks to SEBI (Securities and Exchange Board of India)

    The days of waiting are over and long gone. There are many ways to get listed on the IPO list faster. SEBI (Securities and Exchange Board of India) has made it easy for the startups to list themselves in India, introducing the Innovators Growth Platform, also making changes for them to get listed domestically.

    Delays due to the pandemic

    One of the other reasons is none other than the pandemic itself. It really shook up the world, bringing everything to a halt and slowing down many aspects of our lives. Seeing the stability and growth, the other startups are sure in a hurry to get themselves listed as soon as the pandemic did put a stop to the process. And it would not hurt to take advantage of the situation and accelerate it.

    Pros and Cons of Registering for an IPO

    Pros of registering for an IPO

    1. It helps in fundraising.
    2. Creates credibility and publicity.
    3. Having stocks as a means of payment.
    4. Reduced overall cost of capital.

    Cons of registering as an IPO

    1. There’s market pressure.
    2. Needs additional regulatory requirements.
    3. Potential loss of control.
    4. Transaction costs.

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    What happened When Zomato went public?

    • A big deal was made when Zomato went Public. It sent the internet into a frenzy.
    • The value of Zomato went from $5.4 billion, with the expected value of its stock to hit $7.5 billion.
    • People saw humongous potential in it as it is one of the fastest growing B2B segments in the food market.
    • It was backed by investors like the Ant Group, Info Edge, Ant Financial, Temasek, and more.
    • Tiger Global, Kora, Luxor, Fidelity (FMR), D1 Capital, Baillie Gifford, Mirae, and Stead view joined Zomato’s board.

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    List of startups that have opted for IPOs in India

    • Zomato
    • BYJU’S
    • Delhivery
    • LIC
    • Policybazaar
    • Freshworks
    • Pepperfry
    • Flipkart
    • Nykaa
    • Bajaj Energy

    FAQ

    Which Indian startups went public in 2021?

    Policy Bazaar, Delhivery, Nykaa, Paytm and Zomato are few startups that went or are preparing to go public in 2021.

    How many unicorns are there in India in 2021?

    There are 53 unicorns in India as of June 2021.

    What is an IPO?

    IPO is a fundraising method where companies list their stocks in public to raise capital from public investors.

  • How did Uber make a Billion Dollars from Zomato Listing? – Case Study

    We are past the worst recession since the Indian independence in 1947, which was due to the COVID-19 onslaught. Though the dreadful pandemic hasn’t taken its exit yet from the country, the Indian market has started to boom with the listing of the shares from a bunch of companies, which certainly looks promising enough!

    Zomato, India’s food delivery giant, has already launched its IPO on July 23, 2021, and that too with flying colors. Though the company exhibited a mammoth size of IPO at Rs 9,375 crores, the overall subscription of 38x was quite healthy. At the end of day 1, Zomato witnessed a 66% premium at Rs 125.85.

    Zomato, with its successful IPO listing, has certainly been the talk of the town but one another company has parallelly been mentioned if not more. This is Uber, which seems to have largely benefitted with this listing of Zomato, and what is stranger is the fact that it hasn’t spent a single penny in the food aggregator business!

    Uber’s Gain out of the Zomato IPO
    How did Uber become the gainer in Zomato IPO?
    Looking Back at the Uber Eats Deal of Zomato
    Who else gained in Zomato IPO?
    FAQ

    Uber’s Gain out of the Zomato IPO

    As soon as the Zomato listing closed for the day on July 23, 2021, people began talking about the sudden surge of the market value of Uber stakes. Yes, the market value of the stakes Uber has in Zomato, at the end of the day, was announced at Rs 9,000 crores ($1.2 billion). This baffled many, and even more so, when they heard that Uber didn’t spend a penny for such a fortune it made out of the Zomato IPO.

    How did Uber become the gainer in Zomato IPO?

    The recent gain of Uber may sound like the company has not spent anything to gain a considerable large sum and in reality, it is so. However, we need to recall that Uber has had its 9.19% shares in Zomato due to the latter’s acquisition of Uber Eats, which Zomato acquired back in 2020 at $206 million.

    Along with making over a billion dollars in Zomato’s IPO, Uber also resigned from Uber Eats last year, which was on the verge of being a liability. Therefore, it was truly a win-win decision for Uber!

    Looking Back at the Uber Eats Deal of Zomato

    Launched in August 2014, Uber Eats started as a food delivery platform, which displayed menus from all the restaurants that were partnered with the app and helped the users order their favorite dishes, much like what we do in Zomato and Swiggy.

    However, soon after the launch, Uber Eats started to pick up huge losses. The losses for the company started to pile up even more after the Covid-induced lockdown was announced. Furthermore, the losses of Uber Eats were tied to the overall losses that the cab aggregator was seeing, especially when more than half the world was observing lockdown.

    During this time, the subsidiary of Uber had to resort to stringent measures like pay cuts and laying off employees. Uber Eats trimmed down its employee strength by 30% in hope that it would help the company get some gear, but when it failed, Uber thought of selling off its food delivery subsidiary.

    It was on January 21, 2020, that the Indian division of Uber Eats was finally sold to none other than the food delivery giant, Zomato, in return for 9.99% stakes in Zomato, which was valued at around $180 million back then.

    Who knew that this deal would be so profitable the next year itself?

    According to Uber, the “fair value of the consideration” that it received for the Indian business of Uber Eats was $206 million, which included $35 million of “reimbursement of goods and services tax receivable from Zomato.”

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    Who else gained in Zomato IPO?

    Along with Zomato and Uber, the IPO was also a huge benefit for Info Edge, whose stocks saw a healthy rise in price and are currently worth Rs 15,000 crores. Deepinder Goyal, Zomato cofounder’s holdings, which were valued at 2,800 crores also witnessed a rise to Rs 5,500 crores.

    Overall, it can be said that Zomato made a robust debut on the stock exchanges on Friday, July 23. The shares of the company started at ₹116 on the national stock exchange (NSE) and represented more than a 51% premium over the issue price of ₹76. Only 16 minutes past its listing, at 10.16 a.m., the market cap of Zomato breached ₹1 lakh crore. An amazing feat indeed!

    Stocks of Zomato
    Stocks of Zomato

    Conclusion

    Launched in 2008, Zomato was one of the startups that have truly emerged strong, standing as the biggest food delivery services in India, ahead of its arch-rivals, Swiggy, have amassed the strength of the years and is pacing towards a brighter future.

    On such a successful first-day run of Zomato, the co-founder and CEO, Deepinder stated, “We are going to relentlessly focus on 10 years out and beyond, and are not going to alter our course for short-term profits at the cost of the long-term success of the company.”

    FAQ

    Is Uber Eats owned by Zomato?

    Yes, Uber sold its India business of Uber Eats to Zomato for a 9.99% stake.

    When did Zomato acquire Uber?

    Zomato acquired Uber Eats on 21st January, 2020.

    Why did Uber Eats left India?

    Uber Eats decided to quit its operation in India, to cut its global losses as it was fallen behind to keep up with the competition.

  • Why did the Chinese Government Ban the ride-hailing firm Didi?

    The Chinese Government had been hunting down the tech giant Alibaba for a long time in the country and has also ensured to remove Jack Ma from his board member position. The Government and the regulatory authority have recently removed a tech company from the app store of China soon after it was listed on the NYSE. Let’s look at why China had banned Didi.

    Didi – Latest News
    About Didi
    Why was Didi Banned in China?
    Didi’s response on the Ban
    Chinese regulators on overseas listed companies
    FAQ

    Didi Ban – Latest News

    The shares of the company, Didi had seen a fall of around 20% as the Chinese Regulators had removed the application from the app store in China. The company has been all over the news in regards to the troubles in China.

    The mobile application is said to have been collecting various information from the customer and this is considered to be the major reason for tightening the restrictions on the mobile application.

    The company had been listed on the New York Stock Exchange but just after some days of the listing the Government of China had accused Didi of cybercrime and have suspended the new registration of customers on the app.

    About Didi

    Didi is a Chinese based vehicle hiring company that was started in the year 2012. The company has its headquarters in Beijing and has more than 550 million users and tens of drivers associated with it.

    The services provided by the company include transportation services, social ride sharing, taxi hailing, bike sharing, social ride sharing etc. which are app-based services. They also provide services such as on demand delivery services, automobile services which include leasing, sales, financing, maintenance, electric vehicle charging, co-development of automobiles with automakers, etc.

    In the year 2016, the company had acquired the Uber in China and has established a prominent space in the industry.

    Why was Didi Banned in China?

    The Chinese regulators have conveyed that the app posed a cybersecurity risk for the customers and that is one of the major reasons to remove the mobile application from the app store. The regulators have also accused the company for have collecting and using the personal information of the customers illegally.

    Some experts have estimated that the crackdown on Didi by the Chinese regulators is an attempt to prevent the data and information of the Chinese companies to be leaked outside. The company was listed on the New York Stock Exchange in month of June 2021.

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    Didi’s response on the Ban

    The shares of Didi have been falling since the tightening of regulations from the Chinese authority. The investors of the company have been clattered and this has happened within a week since the company had gone public in the United States.

    Didi Share Price
    Didi Share Price

    Didi is enormously reliant on its home market and has more than 300 million active users in the country. The company has conveyed that they are working with the regulators in order to comply with the rules and regulations and towards working to make certain changes to the application.

    Chinese regulators on overseas listed companies

    The Regulators of China has stated that they would increase the regulations that they have laid down on the overseas listed companies. The country will start regulating a keeping a periodic check on the information such companies are sending and receiving across the borders. The motive is said to ensure that the Chinese consumers are safe from cybercrimes or the leak of personal information.

    The Government has made a strict order to punish certain illegal activities by the companies such as fraudulent share issuance, market manipulation, embezzlement, etc. The regulators have conveyed that the securities fraud was prominent in the overseas market.

    Conclusion

    However, the company has conveyed that the customers and the drivers who had already downloaded the application won’t be affected due to the crackdown and also the company has stated that it expects a hit in its revenue generation in the country.

    FAQ

    When was Didi Chuxing founded?

    Didi Chuxing was founded in 2012 by Cheng Wei, Zhang Bo, Wu Rui.

    Why did China ban Didi?

    China’s internet regulator banned Didi’s, saying it illegally collected users’ personal data.

  • What is MicroStrategy and why they hold over 100,000 bitcoins?

    Bitcoins have seen a lot of criticism at the same time a lot of people supporting the value and boosting the price of bitcoins and aggressively investing into it. Elon Musk is one of the well known person who has done it and also been criticized for it. In this article let’s look at, Why MicroStrategy holds more than 100,000 bitcoins that is worth more than USD 3 billion.

    MicroStrategy – Latest News
    About MicroStrategy
    How MicroStrategy got Hit after the Purchase of Bitcoin
    How the purchase of bitcoins benefited MicroStrategy
    How did Michael Saylor responded to the purchase of bitcoins
    FAQ

    MicroStrategy – Latest News

    MicroStrategy is estimated to hold bitcoins of over 100,000 in pieces that are worth more than USD 3 billion after a recent purchase from the company. The company is said to have spent around USD 489 million in order to purchase around 13,005 tokens.

    About MicroStrategy

    MicroStrategy is a Virginia based software company that was incorporated in the year 1989. The company provides cloud based services, mobile software and business intelligence. The firm focuses on making business decisions and making mobile apps by developing software and analyzing the internal and external data.

    It is a Public Limited company that is listed on Nasdaq and S&P 600. The primary competitors of the company in the Analytics field include SAP, Oracle and IBM congos. The company employs around 1997 members.

    How MicroStrategy Shares got Hit after the Purchase of Bitcoin

    On 21 June 2021, the shares of the company had seen a fall of around 9.7%. The fall is expected to be a mirroring of the fall that had happened with the bitcoin price where the digital coin had seen a downfall of over 7% which is around USD 32,600 per token.

    MicroStrategy has conveyed that the average purchase price of its bitcoins of 105,085 tokens is around USD 26,080 per token. This amount was inclusive of the fee and other expenses incurred during the purchase. As of 21 June 2021, the holdings of the company were worth more than USD 3 billion.

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    How the purchase of bitcoins benefited MicroStrategy

    The company has claimed that due to the purchase of bitcoins and the returns generated through it the company which was wiped off or not even recognized on Wall Street has become very popular and well known in the field and the crypto community after the dot com crash.

    This is mainly due to the aggressive investment into bitcoins by the CEO and Chairman of the company Michael Saylor. The CEO is known for posting regular tweets about bitcoin on Twitter and has around 1 million followers on the micro blogging platform.

    How did Michael Saylor responded to the purchase of bitcoins by MicroStrategy

    Michael Saylor, In a recent interview defended the investment by the company made into bitcoins by issuing a debt instrument, to which most people didn’t agree with. He conveyed in the interview that the company could rotate the shareholder base and was able to sell enterprise software and later on acquire and hold bitcoins with the income and he added that the company has done it successfully using the leverage.

    He also said that this strategy has been driving the business and the power of the brand by a factor of 100. He also stated that they had the best quarter compared to the last 10 years and stated that the revenue of the company had seen an increase of 10% year on year.

    He added that the business of bitcoin is driving the returns of the shareholders and said that the shareholders are happy and the employees of the company are happy too.

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    Conclusion

    The CEO and Chairman of MicroStrategy, Michael Saylor has and will always be one of the promoters of bitcoin and recently had said in a press release that he is happy and thrilled about the decision made by El Salvador in order to accept bitcoin as a legal tender in the country. He added that he thinks that it is a good thing.

    FAQ

    What does MicroStrategy company do?

    MicroStrategy provides a platform that enables departments and enterprises to deploy web-based reporting and analysis solutions. MicroStrategy also offers consulting, training, and support services.

    Who is the CEO of MicroStrategy?

    Michael J. Saylor is the CEO of MicroStrategy.

    Why is MicroStrategy stock so high?

    Shares of MicroStrategy soared because the price of Bitcoin is also soaring. As MicroStrategy owns quite a few Bitcoins, so it benefits when the price is rising.

  • Reasons why Shifts saw a surge of 5300% in their share value?

    SHIFT which is a software testing company that is based in Japan has seen an increase in its stock price of around 5,300%. The CEO of the company has shared the secret behind the surge in the stock price of the company. Let’s look at the reason for this bull run in the stock price of the company.

    History of Shift
    Business Model of Shift
    Rise in Shift’s Shares
    The Strategy of Shift behind the surge of Stock price
    View Points about Shift
    FAQ

    History of Shift

    Shift was established in the year 2005 by Tange. He was grown up in an ordinary family in the Southwest Japan and started the company after completing his master’s in mechanical engineering and spending more than 5 years in working for a consulting firm.

    Before entering the software testing business in 2009, Shift was involved in advising companies on how to improve their profits. Tange had conveyed that he would want to change the perception towards the job of software engineering from considering it as a second-rated job by increasing their pay.

    For example, for a service that would be charged in the market for 3 million yen would be charged 2.5 million yen by the company. This strategy helped them win more clients and the engineers who would get paid around 400,000 yen for their work would be paid 700,000 yen by Shift. This was possible by cutting down the middlemen.

    Yusuke Santo who is a software developer of a company acquired by Shift has said that his salary had jumped more than 70% post the acquisition. He said that Shift was a huge turning point in his career. Shift has acquired more than 14 firms from the year 2015 with an increase in their number of permanent engineers from 228 to 3,308.

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    Business Model of Shift

    Tange has conveyed that his business model is an attempt to remove the inefficiencies in the software industry of Japan. The subcontractors take cuts from the top industry and later pass on the work to the lower companies which reduces the pay of the engineers.

    He also said that it is a step to taking a break from the Mergers and Acquisition strategy of buying a business in order to reduce the cost. He conveyed that he is on a mission to rescue the young employees and would want to create a fair working environment through the Mergers and Acquisitions.

    Rise in Shift’s Shares

    The shares of Shift Inc. have seen a rise of more than 5,300 % since the day it went public in the year 2014. The company is considered to have shown the second-best performance in the benchmark of the Tokyo stock index.

    The market capitalization of the company has seen an increase to around USD 2.3 billion, where Tange holds 33 % of the stock which has a valuation of about USD 745 million.

    The market size of IT Industry in Japan
    The market size of IT Industry in Japan

    The Strategy of Shift behind the surge of Stock price

    The CEO of the company Masaru Tange has shared the strategy where he says that increasing the pay of his engineers is the secret behind the surge in the stock price of his company. He conveyed that he acquired smaller firms and increased the pay of the workers. This is the ultimate strategy that boosted the share price of the company.

    The company would acquire other businesses that are at the bottom of the supply chain industry and increased the salary of their engineers. He communicated that he is able to do so and charge competitive prices from the company’s clients by cutting down the company’s that act as a middleman in the outsourcing process.

    He added that having more workers in your company leads to an increase in the number of sales.

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    View Points about Shift

    According to Go Saito who is an analyst has conveyed that increasing the number of engineers leads to an increase in the revenue as the company will be able to do more business. The sales of the company can be derived by multiplying the number of engineers and the unit price for engineers.

    He also conveyed that the company has a highly qualified human resource as they have created a framework of skill developed engineers. In the year August 2020 the revenue of the company had increased to 28.7 billion yen compared to 208 million yen 3 years back.

    The company forecasts an increase in its revenue this fiscal year to 45 billion yen and is expecting to reach 100 billion yen by the end of 2025. The CEO of the company has said that the company is the best in its field in Japan.

    FAQ

    Who is the founder of Shift?

    the Founder of Shift is Masaru Tange who founded the company in 2005.

    What does Shift Inc. do?

    Shift is a software testing company, headquartered in Tokyo.

    What is the revenue of Shift?

    The revenue of Shift was ¥28,712,177 thousand in 2020.

    Conclusion

    The shares of Shift haven’t fallen much and the most recent was during the month of October where the company had seen a fall of around 22% as investors had sold high-technology stocks. Even after the fall in shares, the company is estimated to be trading more than 80 times the estimated earnings.

  • Why Joe Biden proved to be Best US President in last 75 Years for Traders

    Joe Biden is the newly elected President of the United States of America. He is the 46th President of the United States and is considered to be the best President for stock market traders compared to the President’s of the last 75 years. Let’s look at why Joe Biden is considered to be the best President for the traders.

    U.S Stock Market
    Returns
    Reason
    Earnings
    FAQ

    U.S Stock Market

    In the first 100 days of Joe Biden’s Presidential rule in the United States, the stock market of the country has provided better returns compared to any other President from the past 75 years. The data was provided by JP Morgan.

    JP Morgan’s analysts that were led by John Normand reviewed the administration performance of Joe Biden since the day of the inauguration and discussed on how the various policies on tax and the programmes related to spending could move the markets in the coming months. This was discussed on 23 April 2021 in a note to the company’s clients.

    The analysts said that the record fiscal stimulus had increased the returns on equity to all-time highs in the first 100 days of Joe Biden’s rule. They added on to the note saying that the results are not bad for Biden whom Donald Trump had labeled as Sleepy Joe during the election campaign.

    Returns

    The returns provided by the S&P 500 after 100 days of Joe Biden’s Presidential rule are around 25% for the first 100 days from the day of inauguration. When compared to the returns received after the former President Donald Trump’s Presidential rule was below 15 % for the first 100 days from the day of inauguration.

    The data from JP Morgan showed that the average S&P 500 returns on equity of the Democratic Presidents were more than double the average returns provided by the Presidential rule of Republicans since the end of World War II.

    The highest returns which were received by any President for the first 100 days mark previously was by President John F Kennedy which was more than 20 %.

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    Reason

    JP Morgan added on saying that the Biden’s policies since the day of the inauguration have benefited the market. This was because the proposed policies of Joe Biden were undoubtedly positive. Joe Biden has also planned to increase the capital gains to nearly double as much as around 43 % for the wealthy Americans.

    The JP Morgan team said that there would be a drag on the market in the year 2021 due to the hikes on the taxes for corporations and individuals in order to fund spending on social and infrastructure with a strict regulatory environment.

    Earnings

    The JP Morgan team added that they did not expect that the increases in the tax would cause a big dip in the earnings. The view since the campaign of 2020 has been that a higher rate on corporate is expected to reduce the Earnings Per Share of S&P 500 by many dollars.

    But within a sudden growth in the earnings environment which is because of the higher tax rates and the reopening because of the vaccine drives. The strategists of JP Morgan with regards to the US equity have checked and expanded the original analysis this week which shows that there is no change to the target of the 4400 mark by the end of this year in the S&P 500.

    JP Morgan said that an increase in the capital gains tax rate in 1986 from 20% to 28% and 2013 from 15 % to 25 % had led to about 5 % drawdowns in a month in the equity market before the new codes coming into effect.

    But the analysts said that it is a sample size that is smaller and the Tax Reform Act of 1986 had lower individual and corporate rates. The analysts added that overall, from the Biden’s tax policies they expected that it would increase a continuous rotation into the value based stocks that would be far from the big growth companies and the tech companies. This would be instead of a downturn in the market.

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    FAQ

    What is the Net worth of Joe Biden?

    The president of America is paid a $400,000 a year; on top of that, they receive an extra $50,000 expense allowance, a $100,000 non-taxable travel account and $19,000 for entertainment.

    How old is Joe Biden?

    The age of Joe Biden is 78 years.

    Who is the wife of Joe Biden?

    Joe Biden’s wife is Jill Biden.

    Conclusion

    The view of JP Morgan has been supported by the UBS Global Wealth Management. They have informed their clients in a note in the month of April that they had not found any correlation between the valuations of equity markets and tax rates on capital gains.

  • Top 5 Best Stock Investment platform for Beginners

    Stock Market investments are always considered to be very complicated and hence a lot of people stay away from it. Nowadays with the launch of new mobile applications stock market investing have been made much easier. Let’s look at some of the best platforms to help you in stock market investing.

    Zerodha
    Upstox
    Groww
    Smallcase
    Moneycontrol
    FAQ

    Zerodha

    Zerodha Kite is one of the best stock market investment apps in India. It has a rating of 9.85 in the trading app segment. Zerodha was the first discount stock broker of India. Currently, it is the number 1 stockbroker in the country. The app has a user-friendly platform and it does not have a lot of information or resources which are unnecessary.

    All the investments using Zerodha are free of brokerage which means that if you buy a stock and don’t sell it on the same day then you will not have to pay any amount for the purchase of the stock. It is one of the best apps for a beginner stock market investor.

    Zerodha Website
    Zerodha Website

    If you are an investor who wants to research on your own and then invest in individual stocks you can choose Zerodha as your stockbroker. Zerodha also has a mobile application which is Zerodha Varsity.

    This application provides you with education on the basics of stock market investing and the different subjects related to it. You can access their mobile application for free of cost.

    Upstox

    Upstox is a leading discount broker in the country. It has a mobile application through which you can invest easily into stocks which is Upstox Pro. Upstox was formerly known as RKSV technologies. The company is backed by Ratan Tata.

    upstox Website
    upstox Website

    The charges of Upstox are similar to that of Zerodha. It is also a discount broker and is second in the market share of the stock market brokers in India. You can also choose Upstox as your stockbroker if you want to research on your own and then invest in individual stocks

    Currently, you can open a Demat and trading account with Upstox for free of cost with various other benefits.

    Groww

    Groww is a mobile application you can consider if you are a beginner in Stock Market Investing. The platform provides an interactive and simple user interface. The application offers various resources such as blogs and learning videos that are related to mutual funds to help you in stock market investing in case you are a beginner.

    Groww Website
    Groww Website

    Through the Groww application, you can easily invest in Index funds, Mutual funds, and various other stocks at a zero-commission rate. The platform provides an easy-to-use interface where you can track all your investments, total returns, and annual returns under one dashboard. You can also create an account easily with a one-step KYC process.

    You can even start investing in mutual funds or Index funds through a Systematic Investment Plan (SIP) at a very low price of INR 100. All your transactions through the platform will be secure as it uses 128-bit SSL encryption. The mobile application is available for both Android and IOS users.

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    Smallcase

    Smallcase is a mobile application that lets you invest in stock markets in a simple and easier way. If you are an individual who has no idea about stock market investing and has no time or interest to study about the stock market but wants to invest in it, then you can choose Smallcase for your stock market investments.

    Smallcase will have a set of baskets from which you can choose. For example, if you believe that in the next few years the Electric Vehicle Industry is going to flourish then you can find a basket of stocks which are related to the Electric Vehicle industry in Smallcase. The basket can include EV car parts manufacturing companies, EV battery manufacturing companies, EV companies and so on.

    smallcase Website
    smallcase Website

    This makes it easier for any individual to invest into stock markets. Through Smallcase you can invest in the form of a SIP. You will have to link this application with your Demat account and all your stocks will be available in your Demat account according to your selected
    basket.

    You can also edit the stocks in your basket and customize them according to your requirements. The fee is charged on a one-time basis that is INR 100 + GST is charged for all Smallcases that are for one basket of stocks.

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    Moneycontrol

    Moneycontrol is one of the most famous stock research websites in India. The website provides all the information regarding charts, trends, news, commodities, futures, options, IPO’s and many more.

    Their website is considered as a one-stop solution for tracking the share markets in India. You can get access to all the fundamental and technical data of a particular stock using this platform.

    Their mobile application is available to Android, IOS, and Windows users as well. They have a pro version for their platform which costs INR 199 per month, INR 499 per year, and INR 1999 for 3 years.

    FAQ

    How do I start investing in the stock market?

    To start investing in stock, Decide on how you want to invest in stocks, Know your goal for investment, Open an investing account i.e. demat and trading account, Set a budget for your stock investment, Learn about stock market basics.

    What is the best stock to invest in for beginners?

    The best stock to invest according to Nasdaq is Alibaba (BABA Stock Report), Alphabet (GOOGL Stock Report), Amazon (AMZN Stock Report), Apple (AAPL Stock Report), Disney (DIS Stock Report).

    Who is the richest stock trader?

    George Soros is considered as one of the richest active trader globally whose fortune is approximately 8.3 billion dollars.

    Conclusion

    You can use the above platforms for beginning your stock market investment journey. All the platform charges are reasonable compared to the other applications in the market. All the apps mentioned above can be used by a beginner-level stock market investor.

  • Indian Startups May Soon Start Listing Overseas

    Indian startups may become the new eye candy for foreign investors as RBI and SEBI come together allowing them to enlist themselves in foreign jurisdiction. The tech ecosystem is flourishing at a steady pace in India. This pace might get some acceleration if Indian startups decide to approach funding by enlisting themselves outside India.

    However, until recently, SEBI, the stock market watchdog, had certain compliances which made listing on foreign exchanges a troublesome task.

    Under the current rules, Indian companies are allowed to issue only specific currencies such as depository receipts on foreign stock exchanges- that too only if you are a company enlisted in India. This is about to change as the government along with SEBI and RBI has now allowed Indian conglomerates to enlist themselves abroad.

    What are the Changes Made by the Government
    Companies that are Seeking Foreign Stock Exchanges
    Benefits of Listing On Foreign Stock Exchanges
    Key benefits of listing Overseas
    Creating a Brand Presence
    Native Concerns
    FAQ

    What are the Changes Made by the Government

    In the Companies (Amendment) bill 2020 passed by Rajya Sabha in September last year, it seeks to amend Sec 23 of Companies Act 2013, which prescribes the manner in which private and public companies may issue securities.

    Earlier, the companies who preferred enlisting themselves on foreign stock exchanges were compelled to do so with several restrictions laid out by SEBI. With the amendment coming into force, not only existing Indian companies but newbies too can enlist themselves under foreign stock exchanges. The center along with SEBI and RBI are working on a framework to bring this into practice.

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    Companies that are Seeking Foreign Stock Exchanges

    Infosys, the Indian tech giant became the first company to get listed on a foreign stock exchange when it enlisted itself on  NASDAQ (National Association of Securities Dealers Automated Quotations) on March 11, 1999. Post Infosys, a number of Indian companies decided to join the league including ICICI, HDFC Bank, Wipro and travel tech company MakeMyTrip.com.

    Along with NASDAQ, there are other exchanges overseas that are trying to grab the attention of Indian companies. Amongst the top ones are NYSE, Tokyo Stock Exchange, London Stock Exchange who are trying to meet Indian firms and lure them into enlisting themselves on these platforms.

    India has more than 30 unicorns such as OLA, Byju’s, Swiggy and Paytm who could be beneficiaries of this government initiative. While this is being applauded and celebrated, UK based Bay Capital announces Pre IPO investment in India’s largest insurance aggregator, PolicyBazar.com.

    Siddharth Mehta, founder and chief information officer of Bay Capital, said, “We are excited to partner with the excellent management team of PB Fintech, which is transforming the way insurance is bought in India. Customer centricity has been the heart of their proposition and has helped them become the platform of choice for customers.”

    Highest Valued Startups in India 2020
    Highest Valued Startups in India 2020

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    Benefits of Listing On Foreign Stock Exchanges

    Indian startup ecosystem has now been exposed to a vast capital market which was in oblivion before the announcement. Of course, there are companies who have taken the road to foreign stock exchanges but notably it took Indian companies 30 long years to finally go abroad.

    SEBI has been a tenacious watchdog and companies have struggled to move out of their regional boundaries. With the changes prompted by the center, Indian companies, especially startups are doing the happy dance since a vast capital market has been exposed to them.

    Key benefits of listing Overseas

    Wider Investor base

    Listing overseas will expose Indian companies to a larger pool of investors broadening their investor base.

    Soared  Valuations

    More investors along with an understanding of global influence, raised cap for funding.

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    Creating a Brand Presence

    Overseas listing has put companies like Wipro, HDFC Bank, ICICI on the global map and will do the same for companies that are considering this move. No pros for any decision exist without their cons. Economic experts fear that Indian companies may face tax complications in a market regulated by foreign law makers. Dual listing may bring concerns over co-existing in foreign waters and on the home ground.

    Native Concerns

    Internet entrepreneur Sanjeev Bikhchandani says an estimated Rs 17 trillion of market cap has been transferred abroad after young Indian Startups were forced to shift their company domicile overseas by foreign investors promising the funds they need for growth.


    There is a fear shared by many economic well wishers that listing overseas would be giving up a part of the ecosystem which is full of potential and may drive the aspiring Indian entrepreneur away from his/her roots.

    FAQ

    Which country has the most number of Startups?

    United states is the country which has the most number of Startups.

    Can Indian companies list overseas?

    Ministry of Finance, Government of India announced that Indian companies would now be allowed to list their shares directly in foreign stock exchanges.

    Is dual listing allowed in India?

    The Indian government has decided not to mandate secondary listing for domestic firms which choose to list on overseas stock exchanges.

    Conclusion

    Indian ecosystem is a hidden treasure which is about to get explored by the global market. Several startups have been meaning to raise funds through ICOs (Initial Coin Offering) which is through crypto funding.

    Apparently, we are running out of investors in India and foreign involvement is seeking an approval at large. While this may be a great opportunity for upcoming companies, there will always be dismay of profits  flowing out of the country.

    Listing overseas calls upon a bundle of opportunities for Indian companies to have a global footprint. It not only will enable India to aspire for a spot in the global marketplace but also will take Indian ecosystem towards becoming a global superpower.