European companies are significantly expanding their presence in India's IPO market, with more than half a dozen companies from the Alpine region and neighboring countries either filing draft papers with SEBI or preparing to do so. According to reports from The Hindu BusinessLine, this transformation is making India's primary market a global capital-raising hub amid growing investor interest. The composition of India's primary market is expected to undergo a noticeable transformation as these European companies set their sights on listing on domestic exchanges - BSE and the National Stock Exchange.
Among the notable European companies planning IPOs is Bonfiglioli Transmissions Ltd, the Indian arm of Italy's Bonfiglioli Group, which plans to launch a ₹2,000 crore IPO. As reported by The Hindu BusinessLine, the electro-mechanical power transmission and industrial drive solutions company received SEBI's approval in June. The public issue will consist entirely of an offer for sale (OFS) of 4.7 crore shares by the promoter, Bonfiglioli S.p.A. Similarly, PlaySimple, owned by Sweden-based Modern Times Group, recently filed for a ₹3,150-crore IPO with SEBI. Innoterra Ltd, the Indian subsidiary of Switzerland-based Innoterra AG, filed its draft papers in June for an IPO comprising a fresh issue of up to ₹105 crore and an OFS of up to 70.55 lakh equity shares.
European participation extends beyond fresh listings, with strategic partnerships already established in the market. According to reports, French asset manager Amundi, the largest investment manager in Europe, has been a long-standing partner in SBI Funds Management's ₹11,700-crore IPO which opened on Tuesday. Even after selling about 7.54 crore shares through the OFS, Amundi will retain nearly a 33% stake. Additionally, a Cyprus-based non-banking financial company, Ellinas Finance, recently listed its shares on the NSE International Exchange (NSE IX) at GIFT City, becoming the first foreign company to achieve a cross-border equity listing in India.
India's electric vehicle components market is experiencing unprecedented growth, with the sector projected to expand eightfold to ₹3.55 lakh crore by 2032 from ₹41,000 crore in 2025. According to the newly released 'India Electric Vehicle & Components Market Overview Report' by India Energy Storage Alliance and Customized Energy Solutions, the Indian EV component market is poised to grow at a compound annual growth rate (CAGR) of 38% between 2025 and 2032. The report highlights that battery packs will account for more than half of the component market in 2025, with motors, inverters, and power electronics also playing significant roles. However, battery packs and inverters remain the most import-dependent segments, together representing nearly 60% of an EV's cost structure.
The proposed India-European Union Free Trade Agreement (FTA) is expected to strengthen investor interest and European companies' strategic view of India as a market. As reported by The Hindu BusinessLine, the agreement is expected to eliminate tariffs on 90% of India's exports by value from Day One, with tariff concessions eventually covering 99.5% of exports over seven years. The deal is expected to be signed by the end of this year or early next year, further enhancing the attractiveness of Indian markets for European companies.
