Indian residents can legally participate in US IPOs through the RBI's Liberalised Remittance Scheme, which allows remittances up to ₹2 crore (US$250,000) per financial year for permitted purposes including foreign securities purchases. According to Ankita Pathak, Head – Global Investments at Ionic Asset, Indian investors are not prohibited from investing in overseas securities under FEMA regulations. However, access to IPO allocations remains challenging as retail tranches are usually restricted by country of residence and allocations tend to favor institutional investors. Investors can access US market investment opportunities through international mutual funds, ETFs, or global investing platforms, with 5paisa offering Nasdaq-linked products for convenient investment from India. Recent developments show UCITS ETFs now available through platforms like INDmoney, offering access to 50+ global markets with zero US estate tax and 15% dividend withholding compared to the standard 25% for US-listed ETFs.
Anthropic's IPO postponement should not be viewed as a red flag according to Pathak's analysis. Companies delay listings for various reasons including valuation expectations, institutional investor sentiment, or changing strategic rationale. The private market for leading AI companies has been deep enough that urgency to list is lower than previous technology generations. Sam Altman's recent statement that OpenAI has also deferred listing plans, describing it as an ill-advised moment given AI safety concerns, suggests this may be a sector-wide timing judgment rather than company-specific issues.
Current AI company valuations reflect medium to long-term growth trajectories rather than immediate earnings, with small changes in assumed terminal growth rates moving fair values significantly. The valuation landscape varies across AI sectors, with semiconductor and hardware companies valued on visible order books and near-term earnings, while cloud and infrastructure players are valued on utilization and demand durability. Software companies' valuations depend on whether AI integration expands addressable markets or compresses pricing.
Pathak emphasizes distinguishing between companies with durable competitive moats and those benefiting primarily from AI narrative. Hardware winners will retain installed bases earning from servicing and upgrades after capex cycles end, while software companies must demonstrate AI integration compounds franchises through better products and pricing power. The test lies in gross margin trajectory, pricing power, and net retention rates rather than revenue growth alone. Companies showing revenue growth without margin expansion or customer retention typically represent narrative-driven investments.
SpaceX's listing dynamics illustrate the volatility of story-driven IPOs, where premiums depend on founder execution and conviction rather than earnings fundamentals. Heavily oversubscribed listings with thin free floats amplify both gains and corrections, with lockups creating supply waves over months. Pathak advises investors to wait until float widens and lockups pass before investing, as early trading reflects scarcity and sentiment more than business fundamentals.
