SpaceX, OpenAI IPOs could spark US investment wave in India
What's the story
The upcoming mega-IPOs of SpaceX, OpenAI, and Anthropic are likely to spark a wave of retail investment from India into US equities. Fintech and broking firms facilitating global investing have reported this trend. After launching US investing through GIFT City earlier this year, Zerodha-backed smallcase is expecting fivefold growth due to the strong IPO pipeline and rising investor interest.
Market response
Broking firms report surge in interest
IndMoney, a pioneer in promoting retail Indian investment in US equity, has witnessed a tenfold rise in search for SpaceX. The company's founder Ashish Kashyap confirmed this trend. HDFC Securities, which has a strong global investing platform, also expects higher growth this year. Its CEO Dhiraj Relli said they have grown 80% over the last year and expect the momentum to continue with both volume and value tracking higher this year.
Trading opportunities
Direct participation in IPOs remains difficult
While direct participation in IPOs remains difficult due to institutional and US-based allocation, Indian investors with US brokerage accounts can trade stocks in real-time with their American counterparts from the day of listing. SpaceX is reportedly looking to list as early as June 12, targeting a raise of about $75 billion at a valuation of roughly $1.75 trillion.
Upcoming listings
OpenAI, Anthropic IPOs expected later this year
Although no listing dates have been set, OpenAI and Anthropic are likely to launch their IPOs later this year. The surge in interest from Indian investors has been fueled by a depreciating rupee, a strong IPO pipeline, and the 40% returns that NASDAQ has delivered over the last year despite global headwinds like tariffs and the Iran war.
Investor tools
Smallcase has launched a US stock screener tool for users
Smallcase has over 30,000 global investors on its platform, with each customer making an average of eight trades a year. The company has also launched a US stock screener tool for users. "The US market is 70% of the global market capitalisation. And it provides exposure to some themes like Space and AI, which are not available for investors in the Indian market," Zerodha-backed smallcase founder Vasanth Kamath told Moneycontrol.