Reforms to Indian regulations may expedite the return of firms destined for initial public offerings.

The elimination of a laborious compliance procedure by India is expected to hasten the return of overseas-domiciled Indian companies to their home country in order to take advantage of the listing boom. This prediction comes from investors, bankers, and attorneys.A so-called "reverse flip" merger with a domestic subsidiary no longer requires approval from the backlogged National Company Law Tribunal, as of last month. This effectively cuts the process's duration in half, from at least 12 to 18 months to three to four months.Many of the dozens of Indian startups that originally decided to locate overseas in order to have easier access to capital and pay lower taxes are now lining up to return home from financial hubs like the United States and Singapore because of the better prospects for their initial public offerings in a nation that forbids dual listings.

According to several sources, Zepto, Eruditus, and InMobi are attempting to complete the merger process in the upcoming months in order to be ready for potential initial public offerings (IPOs), while Razorpay, Pine Labs, and KreditBee are further along in finishing the reverse flip. Because they were not authorized to talk in public, the sources spoke on the condition of anonymity. "We have a home market in India, where people are familiar with and understanding of us. From a listing standpoint, being in India makes sense," Razorpay CEO and co-founder Harshil Mathur stated.With its most recent funding in December 2021, the U.S.-domiciled online payments company was valued at $7.5 billion, and it plans to relocate to India. According to LSEG data, IPOs in India, including those by startups Ola Electric and FirstCry, have raised $9.17 billion in the first nine months of this year, up from $4.68 billion in the same period last year. This makes India a unique bright spot for businesses in the Asia-Pacific region looking to raise equity capital. "A reverse flip makes sense given how well the IPO market is doing. This strategic approach is further supported by the streamlined merger process, which was created to enable quick and easy scheme approvals without the need for court intervention, according to Mehul Shah, a partner at corporate law firm Khaitan & Co.