Boom in India’s primary listings set to overtake UK in stock market value

Increased investment in start-ups has generated greater IPO opportunities for Indian companies, ultimately boosting economic growth – new figures reveal. While London is still one of the leading stock exchanges in the world, India’s growth in market capitalisation through primary listings increased by 37% compared to the UK’s 9% in the past year – according to Bloomberg. Primary listings include businesses who initially IPO on a stock exchange, while secondary listings entail the businesses whose shares are traded outside their initial listing onto other stock exchanges.

Start-ups have played a major role in boosting India’s economy, with a 55.3% rise in startup investment on last year’s figures. Research additionally shows that India’s economic growth is predicted to rise by 9.5% in 2021, compared to the UK’s 6.8% increase. India has over 100 private companies worth over $1 billion, known as ‘unicorns’, with the City of London attracting massive domestic and international capital. This could provide a boost for the London Stock Exchange (LSE) following the Indian government’s proposal to allow these Indian unicorns and ‘soonicorns’ to list abroad. Along with the UK government’s free-trade deal predicted to be worth over £100 billion, the UK’s economy looks set to benefit from the success of Indian businesses.

The growth in the investment corridor between the UK and India is crucial to the LSE, with India currently being one of the fastest growing start-up (especially FinTech) markets in the world. Being the world’s third largest startup ecosystem, 2021 saw India raise $16.9 billion of capital (second only to China) –proving that an economic relationship with the UK is crucial to generate further economic stimulation and job vacancies in the UK. Startup investment bank JPIN VCATS help generate a wider base of investors with deeper pockets, as well as boosting economic growth in London, its stock exchange, and ultimately the UK at large – further cementing it as one of the main international hubs of tech IPOs.

Nayan Gala, founder of JPIN VCATS, comments on what Indian IPOs can bring to the London Stock Exchange:

“Startups in India have gone from strength to strength, receiving record-breaking capital and transforming this into both growth and returns on investors’ capital. The loosening of restrictive laws around IPOs and the upcoming free-trade agreement will only generate more interest – internationally and locally.”

“Investment opportunities in start-ups – particularly through FinTech and AI – look set to be popular in the next few years, and the collaboration between the UK and Indian economy will boost not only the awareness of small firms and businesses in India – but also will create jobs in London and the UK, and ultimately boost what is already one of the leading stock exchanges in the world.”