[ad_1]
SoftBank-backed Indian edtech company Eruditus plans to move its domicile from Singapore to India for a stock market listing, its chief executive said. Reuters.
Eruditus’ edtech platform offers thousands of online courses from more than 80 universities, including Harvard, on topics such as artificial intelligence, data science and software coding, in competition with Coursera, which is listed on the New York Stock Exchange.
“The rich multiples of the Indian stock markets, and the fact that there is so much liquidity and capital, make an IPO in India more attractive,” CEO Ashwin Damera said in an interview on the sidelines of an Indian conference on edtech. near New Delhi.
Although the company has begun work on an initial public offering in India, Damera said any potential listing is at least two years away.
India’s $4 trillion stock market has been attracting billions of dollars of domestic and foreign money as investors flock to a fast-growing alternative to China.
IPOs in India last year outperformed listings in Hong Kong despite falling 16%, and momentum is expected to grow this year on hopes of political stability following upcoming elections this year, Reuters reported.
India’s benchmark stock indices are up nearly 20% in 2023, outperforming many global indices.
In recent years, many Indian companies have registered abroad, in countries like Singapore, hoping to have better and easier access to capital.
However, the recent strength of Indian markets, better access to capital and a better regulatory environment are prompting some companies to relocate to India as a necessary prerequisite for listing locally.
However, such measures have tax implications. Last year, Walmart said it paid the Indian government nearly $1 billion in taxes owed after its Indian digital payments company, PhonePe, moved its headquarters from Singapore to India.
Eruditus has already appointed the accounting firm EY to manage and advise on the transfer of its home, according to sources with direct knowledge. EY did not respond to Reuters queries.
The Indian company is also currently evaluating acquisitions of four to five companies, with the aim of increasing its talent pool, the CEO added.
Eruditus has raised $585 million in primary capital to date, with Accel and Prosus among its investors. It reported revenue of 33.2 billion rupees ($400.3 million) for the financial year ending June 2023, up 75% from the previous year.
(Only the title and image of this report may have been modified by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First published: February 13, 2024 | 00:16 IS
