GST May Spur Over 1,000 companies to seek public listing

Ashishkumar Chauhan, CEO of Bombay Stock Exchange says that once India’s federal government implements the Goods and Services Tax (GST) regimen, smaller firms will become tax-compliant and will float IPOs to sell their shares to the public.

Chauhan estimates that around 1,000 companies will list on his bourse over the next four years. “We have only scratched the surface,” he told Bloomberg, adding that about 74 companies raised $4.3 billion through first-time share sales on the BSE in the last fiscal year, the highest since  2010.

Raamdeo Agrawal, joint managing director at Motilal Oswal Financial Services Ltd., said that the GST was “a huge positive development. It will have short-term hiccups for six months or so. But once it is done and people have accepted it, then the control of the economy will become far better,” reports the Business Insider.

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Posted on by Gunjan Bagla
Gunjan Bagla
California-based management consultant Gunjan Bagla runs Amritt, a consulting firm helping American companies to succeed in India. Amritt is the trusted advisor for India market research, India business development, India market entry, Global Engineering, Global Technology Scouting, India R&D and Open Innovation. Gunjan is author of "Business in 21st Century India: How to Profit Today from Tomorrow’s Most Exciting Market" (Hachette Book Group, 2008), Amazon's top rated title on the subject. He has appeared as the India Expert on BBC Television, Bloomberg TV, Fox Cable Business and has been quoted in the New York Times, the Los Angeles Times, the Hollywood Reporter and Business Week for his expertise on India.

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