The composition of India’s primary market is likely to undergo a noticeable transformation as European companies set their sights on listing on domestic exchanges – BSE and the National Stock Exchange.
More than half a dozen companies from the Alpine region and its neighbouring countries have either filed their draft papers with the market regulator Securities and Exchange Board of India or are expected to do so shortly.
Among them is Bonfiglioli Transmissions Ltd, the Indian arm of Italy’s Bonfiglioli Group. The electro-mechanical power transmission and industrial drive solutions company plans to launch a ₹2,000 crore IPO, for which it received SEBI’s approval in June. The public issue will consist entirely of an offer for sale (OFS) of 4.7 crore shares by the promoter, Bonfiglioli S.p.A.
Gaming software company PlaySimple, owned by Sweden-based Modern Times Group, recently filed for a ₹3,150-crore IPO with SEBI.
Similarly, Innoterra Ltd, the Indian subsidiary of Switzerland-based Innoterra AG, filed its draft papers in June for an IPO comprising a fresh issue of up to ₹105 crore and an OFS of up to 70.55 lakh equity shares.
According to reports, Swedish private equity firm EQT Partners is planning a ₹3,800-crore IPO for its outsourcing platform, Straive. Separately, another EQT-backed company, Virtusa, is also exploring India listing, reports suggest.
Besides, Webasto, German automotive components maker, is also eyeing an IPO early next year, according to market buzz.
European participation extends beyond fresh listings. In SBI Funds Management’s ₹11,700-crore IPO, which opens on Tuesday, French asset manager Amundi—the largest investment manager in Europe — has been a long-standing partner. Even after selling about 7.54 crore shares through the OFS, Amundi will retain nearly a 33 per cent stake.
A Cyprus-based non-banking financial company, Ellinas Finance, recently listed its shares on the NSE International Exchange (NSE IX) at GIFT City, becoming the first foreign company to achieve a cross-border equity listing in India.
The proposed India-European Union Free Trade Agreement (FTA) is also expected to strengthen investor interest. European companies are beginning to view India as a more strategic market. Dubbed the “mother of all trade deals,” the agreement is expected to eliminate tariffs on 90 per cent of India’s exports (by value) from Day One, with tariff concessions eventually covering 99.5 per cent of exports over seven years. The deal is expected to be signed by the end of this year or early next year.
Japan, Korea firms
Foreign companies tapping Indian markets is not new. In fact, last year Korean firms LG Electronics and Hyundai Motors India launched mega IPOs that received strong response from Indian investors. Samsung, another Korean multinational manufacturing conglomerate, plans to tap Indian markets.
As many as two dozen Japanese companies are listed in India, including Maruti Suzuki, Kansai Paints, Honda India, SML Isuzu, Dai-Ichi Karkaria and Sumitomo Chemicals.
A recent report from Redseer said domestic mutual funds, insurers and pension funds, supported by sustained SIP inflows, have steadily increased their participation in IPOs over the past five years, while foreign investors have continued to participate alongside them. “The balance of capital is now far more even, giving India’s IPO market a stronger domestic foundation and reducing its dependence on external flows during periods of global volatility. That shift reflects a market that has become deeper, more self-sustaining and better equipped to support a long pipeline of listings.”
For domestic investors, this is a healthy trend as they will have more diversified set of companies from across the globe, especially at a time when overseas investments remain constrained under Liberalised Remittance Scheme. However, a key concern is that a significant portion of the funds raised through these IPOs will flow to the coffers of foreign promoters rather than fund business expansion.
Even so, the direction of travel is unmistakable. India’s primary market is evolving into a global capital-raising hub, attracting an increasing number of international companies and capital.
Published on July 10, 2026
This Post Has 0 Comments