Empowering Indian Investors: Chocko Valliappa Makes the Case for Global Listings in India
In a thought-provoking opinion piece published in The Hindu Business Line, Chocko Valliappa, Founder & CEO of Vee Technologies, presents a compelling case for global corporations to consider listing in India. He emphasizes that while Indian consumers significantly contribute to the growth and valuation of global companies, particularly in sectors like technology, consumer goods, and automotive, these companies often remain unlisted in Indian markets. As a result, Indian investors are unable to benefit from the value they help create.
India’s economic landscape further strengthens this argument. With an average growth rate of 7.8% over the past decade and a stock market that consistently outperforms global indices, India presents a compelling case for global listings. Moreover, Indian users make up over 30% of the global user base for platforms like WhatsApp, YouTube, Facebook, and Gmail, yet they remain excluded from the wealth these platforms generate.
He also highlights that India’s capital markets offer several advantages, including higher valuation multiples and deeper liquidity. He points to examples such as Jubilant FoodWorks and Maruti Suzuki India, which have achieved valuations that surpass their global counterparts, demonstrating the strength and potential of Indian listings. Mr. Chocko Valliappa also cites LG Electronics’ recent move to divest 15% of its Indian subsidiary through an IPO, and Zepto’s decision to shift its headquarters back to India ahead of its public listing. These examples reflect a growing trend of companies recognizing the value of being anchored in Indian markets.
The article calls for a strategic shift from the traditional “Make in India” approach to a more inclusive “List and Thrive in India” model. This shift would allow global companies to anchor themselves in Indian markets, giving Indian investors a stake in their growth. He outlines the importance of policy support, including tax incentives and simplified listing norms, to encourage this transition.
He also critiques the current Liberalised Remittance Scheme (LRS), which allows only a small segment of Indian investors to buy fractional shares of global companies, making true participation inaccessible for most. To address this, he suggests a policy framework inspired by successful models like STPI and SEZ, including dividend distribution tax holidays, simplified direct listing norms, and corporate tax concessions via GIFT City.
He further notes that platforms like GIFT City can play an important role in facilitating global listings in India, helping companies tap into the country’s growing investor base and vibrant capital market ecosystem. With western markets facing volatility and demographic stagnation, and East Asia experiencing structural slowdowns, India is uniquely positioned to emerge as a capital hub for the Global South. Mr. Chocko Valliappa urges global companies to seize this moment and deepen their commitment to India, not just as a market, but as a financial partner.
The article concludes with a strong message: India’s consumer power should translate into capital power. By listing in India, global companies can ensure that the wealth generated by Indian users also benefits Indian investors by creating a more equitable and growth-driven financial landscape.
Read the full article here - https://www.thehindubusinessline.com/opinion/global-majors-should-list-and-thrive-in-india/article70145034.ece/amp/
