The India International Exchange Ltd (India INX) --- the first international exchange at GIFT IFSC --- is in talks with five unlisted Indian companies for kick starting the process of direct listing on the stock exchanges in GIFT City, Gujarat.

“Five Indian companies have approached us for direct listing. We are currently in discussions with them. Some of these discussions are at an advanced stage, while some are at an initial stage. So let’s keep fingers crossed and hope that by the end of this financial year, at least one major company will get listed,” Vijay Krishnamurthy, Managing Director and Chief Executive Officer of India INX said while speaking at the sidelines of an event at GIFT City, Monday.

Asked why the direct listing has been delayed in GIFT IFSC, he said, “It is only in August 2024, the regulations have been published by IFSCA (International Financial Services Centres Authority, the unified regulator). There is a lot of interest among companies regarding direct listing....We need to target companies who have business outside of India and they trade in foreign currencies. For instance, there are companies who have interest in UAE or Italy or Europe. The listing will benefit them.”

“To bring listed companies to GIFT IFSC, we are awaiting SEBI regulations,” Krishnamurthy said. The IFSCA had told businessline in November 2024, that it finished all preparations for direct stock listing on exchanges in GIFT IFSC. The regulations for direct listing were notified in August 2024 and regulations have been drafted to give an impetus to listing of equity instruments (primarily by unlisted Indian companies and foreign companies), bonds and other permitted financial products on the international stock exchangers. 

Speaking about the benefits and challenges involved in listing in GIFT IFSC, the India INX official said, “If I am an unlisted Indian company, there are certain advantages here. There is only 10 percent shareholding that I need to offload. This I can offload even to a single investor. The disadvantage is that there is no trading happening currently. Trading can happen when 25-30 companies get listed. So their initial apprehension as an unlisted Indian company is why to get listed in the Indian market.”

As per the listing regulations, the issuer shall file an application with a recognised stock exchange seeking in-principle approval for listing of specified securities. If the application is made to more than one recognised stock exchange, the issuer shall choose one of them as the designated stock exchange. Thereafter the recognised stock exchange shall grant an in-principle approval or reject the application within 15 days from the date of receipt of the application. An issuer shall be eligible to make an initial public offer of specified securities, only if the issuer has an operating revenue, of at least $20 million in the last financial year or averaged over the last three financial years; or if the issuer has a pre-tax profit of at least $one million in the last financial year or averaged over the last three financial years; or if the issuer has a post issue market capitalization of at least 25 million.

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