Senior executives of the fintech company Paytm said that if an Indian company chooses to list for the first time on an overseas exchange, the potential plan to force its secondary listing on the Indian stock exchange will constitute an unfair punishment for the Indian company.
In an interview with Reuters on Tuesday, SoftBank-backed Paytm President Madhur Deora said: “Companies should be allowed to go public anywhere. I think this is not only good for the company, but also good for the digital ecosystem.”
Diola made the above comments when India formulated the forgery rules, which will open the door for Indian startups to go public overseas and enter deeper capital pools.
However, earlier this month, Reuters reported that New Delhi is also considering mandatory secondary listings in India for any Indian companies that choose to list overseas for the first time, a move that worries investors that this will hurt valuations.
“I prefer to do this [decision] Left to the company and its board of directors. ” [idea] It will complicate our lives. “
Deora pointed out that companies like Google that compete with Paytm in the field of digital payments have no such obligation.
He said: “We are Indians and we are settled in India. This fact should not impose additional obligations on us.”
Former investment banker Deora said Paytm also has Chinese tech giants Alibaba and Berkshire Hathaway as its backers, and the company expects to be profitable within 12 to 18 months .
As one of India’s most valuable startups, Paytm started ten years ago as a platform for mobile recharge, but now it sells everything from air tickets to mutual funds. It competes with Google Pay, Walmart’s PhonePe and Amazon Pay in India’s digital payment market, and by 2019, the value of this market will more than double to US$135 billion (approximately Rs 9,93134 crore).
Deora said: “We just want to go public as a profitable company.”
© Thomson Reuters 2020
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