Prime Database data show India's hot IPO market is being used to repatriate
capital: since 2024, six foreign-backed companies listed in Mumbai, but only one
raised fresh capital. The other five listed via Offer for Sale (OFS), where
existing shareholders sell shares and the company receives no proceeds. That
structure routes IPO proceeds to selling shareholders and ultimately to overseas
parents. Multinational parents have cashed out nearly $5bn through such
listings, with Hyundai Motor and LG Electronics accounting for over 80% of the
total.
