MakeMyTrip weighs India listing via depository receipts
MakeMyTrip is considering listing its Indian arm via Indian Depository Receipts (IDRs) to manage tax obligations. The move follows a Supreme Court ruling that held Mauritius-based holding companies liable for capital gains tax in India during IPO exits.
MakeMyTrip, a Nasdaq-listed travel company, is exploring listing its Indian arm via Indian Depository Receipts (IDRs) instead of a traditional initial public offering (IPO). This move is driven by tax implications following a Supreme Court of India ruling in the Tiger Global-Flipkart tax case. The IDR route allows a foreign-listed company to access local liquidity while avoiding tax liabilities. MakeMyTrip provides flight, hotel, and bus bookings through its platforms, including Goibibo and RedBus. The company has not yet made a decision and may choose to maintain its current listing structure or pursue a different path for domestic capital raises. MakeMyTrip's market capitalization is approximately $5.7 billion on the Nasdaq Composite.
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