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Sambhar Mafia - Cooked To Kill!

Saturday, January 14, 2006

The lure of listing abroad

Few years ago the buzz was to list on NYSE and NASDAQ. Lot of Indian IT, Banking and Pharma companies took the route during that period. Much before the craze for US listing, there was a craze to list companies on LSE. After tighter regulations and the enforcement of the Sarbanes-Oxley Act (SOX), even companies listed on the US exchanges are thinking of delisting from the markets and taking their companies private. This move has been prompted because the cost of complying to SOX requirements was considered to be much higher than the benefits derived out of such a listing. Nowadays, we hardly hear about companies going for overseas listing. TCS is mulling an overseas (US) listing and this move comes as a surprise to me.

2 Comments:

  • Access to capital is the main reason for going public and nothing beats the US market in that regard. Indians may consider the local market to be really hot but its a drop in the bucket compared to more entrenched markets like FTSE, NASDAQ and NYSE.

    By Anonymous IndianPad, at 6:44 AM  

  • @Indianpad,
    My point is not about Indian markets Vs developed markets. All I'm trying to say that the the US listing fever has died down due to a variety of reasons and the latest move by TCS comes as a surprise.

    By Blogger Kaps, at 2:01 AM  

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