Listing in India: Valuations might blunt Sebi push
Earlier this month, shares of direct-to-home service provider Videocon d2h got listed on the Nasdaq stock exchange in the US, albeit through a Silver Eagle Acquisitions, which took 33 per cent stake.
Videocon d2h had plans to list domestically and even filed its offer document twice with the Securities and Exchange Board of India (Sebi). However, the deal with Silver Eagle, sources said, fetched at least 50 per cent more in valuation than what it would have got by listing in the home market.
Experts believe availability of attractive valuations in foreign markets could blunt the initiatives by Sebi and the government for a more relaxed regulatory framework, to encourage start-ups and other companies to list domestically.
The advantages available in developed markets like the US could mean domestic start-up superstars like Flipkart or Snapdeal ditch listing in the home market, they add.
SOURCE:- AABID
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