Hello, I am Priyanka Salve, CNBC’s main correspondent for India, writing of Singapore. This week, I look at how the world money was fleeing the Indian secondary market but betting on Indian stock exchange.
This report comes from this week’s “inside” newsletter edition of CNBC which brings you news and comments on the market in time on emerging power. Like what you see? You can subscribe here.
Mumbai, Maharashtra, India – 2025/09/17: (LR) Varun Khaitan, Executive Director and Head of Operating, Raghav Chandra, Executive Director and Head of Technology and Head of Product Technology Abhiraj Singh Bhal, President, Managing Director and Managing Director of the Urban Company Limited Pose for a photo of the Taure in Mumbai.
Sopa images | Lightrocket | Getty images
The great story
Focused on consumer technology in India Urban company Registration Wednesday offered an instantaneous world money flowing in the country’s primary equity market.
The founders of the company, dressed in blue jackets and uniform khaki pants, sounded the bell on the National Stock Exchange to start the day of negotiation. And they were not the only ones at smiles when the day ended with the actions of their business which amounted to almost 60% during the beginnings.
Investors from San Francisco, New York, London and Singapore celebrated, who had undergone Urban Company shares last Tuesday at an assessment of 147.90 billion rupees (nearly $ 1.7 billion), according to the Introductory Builder. In less than 10 days, the company’s assessment increased to $ 2.8 billion. The share allowance per share was 103 rupees, and the action was last 64% increased to 169 rupees.
The enthusiasm around urban society highlights a curious trend: since 2024, foreign investors have been net sellers of Indian actions on the secondary market, but they have rushed to the main market in India, which consists of initial public offers and public monitoring offers.
Foreign investors made net investments up to 14.5 billion dollars on the primary market last year, while exchanging $ 14.4 billion in secondary markets, according to data from the national securities deposit. One year to date, they have been networks of stocks worth $ 20.7 billion, but have invested net of $ 4.8 billion on the primary market.
“We have found that there is an alpha generation potential by participating in the IPO,” said Hiren Dasani, director of investments for the emerging company based in Singapore, White Oak Capital, which participated in the IPO of the Urban Society.
For global investors, mathematics are simple. The secondary market of India seems too expensive compared to other emerging markets. The MSCI India index is negotiated with a price / benefit ratio of 25.4x compared to the emerging MSCI market index – which includes India – with a P / E ratio of 15.41x. The MSCI China index is negotiated at 14.6x while the MSCI Korea index is 12.4x.
Even the United States imposing prices of 50% on Indian exports have not led to a significant correction on the market, preventing investors from entering at low prices.
In such a scenario, the IPOs offer a better game for the Indian markets while the management and the bankers evaluate in an attractive manner, aroused significant interest in investors, said experts in CNBC.
The yields of Indian stock exchange in 2024 were significantly higher at 37.1%, compared to its stock market yields of just over 7%, according to the overall IPO Trends report.
“India generally presents an attractive opportunity for investors, due to the training of macro (for example, the growth of GDP and favorable demographic data), a range of interesting commercial models and certain high-quality management teams,” said Alexander Treves of JP Morgan Asset Management in an e-mail response to CNBC, adding that IPOs offer “potential opportunities Indian women at a transparent price “
Ipo Boom
In 2024, India ranked number one worldwide in terms of Introduction volumes on the stock market, listing almost twice as many companies as the United States and more than twice and a half more than Europe, according to the EY report.
In terms of Introduction value on the stock market, India ranked second with companies collecting a total of $ 19.9 billion last year, compared to $ 32.8 billion collected in the United States, which included the largest and the world in the world the second IPO, Hyundai Motor Indiawhich managed to collect $ 3.3 billion among investors.
The current market situation is far from Coal India A problem of $ 3 billion a decade ago which, according to the interior media, had led to a liquidity crisis in the country’s banking system, including massive redemptions in the common funds for investing investors wishing to invest in the IPO.
The capacity of the Indian markets to absorb significant emissions has improved, thanks to the increase in flows of national investors, said Dasani, adding that if foreign institutional investors can sell without any major “impact cost”, then FIIs can also invest more. The cost of impact refers to The extent to which commercial orders – buy or sell – can move stock prices.
The regular demand for national institutional investors has deepened stock markets and improved liquidity, giving FIIs the confidence to participate in the IPOs without worrying about being trapped.
During the last 54 months, the common funds for investing actions have seen net entries, with assets managed by Indian commun funds reaching around $ 850 billion in June 2025, against around $ 696 billion in June 2024, according to data from the Association of Placement Funds in India. Important stock markets mean a greater appetite for larger IPOs, arousing the interest of the FII.
“In terms of the volume of IPO, the financial year 2026 will be similar to FY25, which was a record year in terms of public ads,” explains Shouvik Purkayastha, Managing Director of the Investment Bank at Nuvama. Given a number of large companies that are queuing for registration this year, it expects an “increase in value”.
October is likely to attend the launch of the IPO of 2 billion dollars in Tata Capital and a similar issue in the shares of the Indian South Electronics subsidiary in South Korea, according to the media.
Last month, Mukesh Ambani, president of Reliance, Indian retail conglomerate in Téréque, also announced his intention to list his telecommunications business, Jio Platforms, in the first half of 2026.
This interaction between national capital and foreign capital creates a virtuous cycle. A strong national participation gives companies confidence to launch larger IPOs and those which in turn attract foreign investors who prefer scale and liquidity.
To put everything together, foreign investors selling on the secondary market when drafting checks for the IPO is not a contradiction, it is a strategy – which has paid well so far.
TOP TV PICKS SUR CNBC
Trade discussions between New Delhi and Washington seem to have taken a more positive turn while the American commercial envoy Brendon Lynch met Indian negotiators on Tuesday.
Anubhuti Sahay, Chief Research in Economy of India at Standard Chartered Bank, said that there would be a mute impact on the trajectory of India inflation if New Delhi chose to move away from Russian oil imports.
Hazem Ben-Gacem, founder and CEO of Bluefive Capital, joined access to the Middle East of CNBC to discuss the investment strategy of its 2.6 billion dollars fund for India and China.
Need to know
Easier for foreign funds to access the India market. The Securities and Exchange Board of India has simplified its rules, a decision that would benefit approximately two thirds of foreign investors, according to Reuters. He also relaxed the requirements for major initial public offers.
Inflation in India increased in August. The consumer price index arrived at 2.07%, meeting analysts’ expectations. That said, it went from 1.55% in July due to an increase in the prices of vegetables, meat and fish, oil and fats, among other articles, said the government.
India faces torrential rains – but it is unlikely that it will increase prices. The key agricultural state of Punjab is faced with its worst flood in 40 years, but the impact on cereal production is limited, and there is enough stock to keep food inflation under control, analysts said.
– Yeo Boon Ping
Quote of the week
The threat posed by Bangladesh and Vietnam is very, very real. We are already seeing the spring of summer, the United States season, the United States export orders move to these countries.
– Ashwin Chandran, vice-president, confederation of the Indian textile industry
On the markets
India NIFTY 50 The index was exchanged 0.12% more at 1:20 p.m., the local time, while the BSE Sensex at 30 stocks was up 0.15%. The indices gained 6.8% and 5.5%, respectively, so far this year.
The return on the Indian government’s obligations to 10 years of reference was negotiated at 6.511%.
Coming
September 23: HSBC PMI Flash for September, supplier of Euro Pratik Sales wall panels launches the IPO
September 24: The VMS TMT steel manufacturer is launching the IPO
September 25: IT IVALUE Infosolutions IT services launches the IPO
Each day of the week, the emission of information “inside india” from CNBC gives you news and market comments on emerging electric companies, and people behind its increase. Livestream The Show on Youtube and Catch Highlights here.
Showtimes:
WE: Sunday to Thursday, 23: 00-0000 and
Asia: Monday to Friday, 11: 00-12: 00 Sin / HK, 08: 30-09: 30 India
Europe: Monday to Friday, 0500-06: 00 this
