Foreign Firms Repatriate Capital via India IPOs
Analysis based on 9 articles · First reported Jun 04, 2026 · Last updated Jun 04, 2026
The trend of foreign companies using India's IPO market primarily for Offer For Sale (OFS) to repatriate capital, rather than raising new funds for expansion, is leading to significant foreign capital outflows. This is exerting a steady depreciation bias on the India — Indian rupee, which has already fallen against the U.S._dollar, and raises concerns about the long-term health and purpose of India's public markets.
Foreign companies are increasingly using India's booming initial public offering (IPO) market as a mechanism to repatriate billions of dollars back to their headquarters through secondary offerings (Offer For Sale - OFS), rather than raising new funds for expansion within India. This trend is driven by sky-high stock valuations in India, where Indian units of foreign firms often trade at significant premiums compared to their parent companies. Major players like Hyundai Motor Company and LG Electronics have already repatriated nearly $5 billion through such IPOs. Planned IPOs by Walmart's Indian payments arm, Walmart — PhonePe, Modern Times Group, The Coca-Cola Company, and Carlsberg Group are also expected to follow the OFS route. This capital outflow is contributing to the depreciation of the India — Indian rupee, which has fallen 13% against the U.S._dollar since 2024. While India's Chief Economic Advisor V. Anantha Nageswaran has expressed concern that this undermines the spirit of public markets, government officials have not indicated any plans to curb the trend.
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