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MakeMyTrip Could Pave Way for More Indian IPOs

Posted by: Bruce Einhorn on August 12, 2010

For years, Wall Street hasn’t been a welcoming place for Indian IPOs. This year alone, at least 14 Chinese companies have had U.S. IPOs, according to Bloomberg News, but since 1999, only four Indian companies have managed to list in the U.S. From July 2006, when WNS Holdings had an IPO, four years went by without any Indian listings on Nasdaq or the NYSE. A pretty sorry record, and probably one reason that India lags far behind China in the development of homegrown Web companies. (Quick - can you name India’s answer to Baidu? I didn’t think so.)

On Thursday, though, Indian online travel company MakeMyTrip finally ended the IPO drought in pretty spectacular fashion. MakeMyTrip’s stock price jumped 89 percent in the first day of trading. That’s the biggest first-day jump for any U.S. stock since 2007. To be sure, the deal was modest - the company sold just $70 million worth of stock, selling 5 million shares at $14 apiece. Still, the successful launch could make investors keen on looking for more Indian listings soon - and help India’s would-be powers in search, social networking and e-commerce start to catch up to their counterparts in China.

Reader Comments


August 13, 2010 5:40 AM

You have your cause and effect reversed. Lack of successful Indian web companies isnt because of a US IPO. We dont have succesful web IPOs because we dont have a lot of succesful web companies. Its not easy to guess why...with only 9 million Internet users penetration is the real killer...


August 13, 2010 8:27 PM

The Indians posting on the Net could have fooled me. They kept boasting their land is The Land Of Innovations. Yet, nobody could specify what they had innovoated. Some url links would be nice. Other than some aggie or garment products, what exactly do they export? That is, apart from the overrated call-centers and some legacy mainframe applications that no new grads here would want to touch.


August 15, 2010 3:51 AM

Why would India build its own search engine? There's no internet sensorship/banning in India like in China. Baidu has Chinese government's official blessings. India contributes second highest traffic to Google after US and to those questioning India's capabilities, Microsoft's Bing is almost entirely a Made in India product.


August 16, 2010 10:56 AM

Only nine million? Then where are all the people coming from that are working for Indian bodyshops? There's gotta be more than 9 million users in India. Maybe 90 million?


August 16, 2010 12:05 PM

'Bing' is made in India ? Care to provide some proof ?


August 16, 2010 2:19 PM

Indeed we don't have many( or any compared to US/Europe) innovations to boast of! But I think the real change is that Indians now have opportunity to operate successful businesses and make it big. There were 56 billionaires in Forbes list in 2007 ( that is before the crisis and the stocks plummeted...which was more than China or Japan). For ex. an Indian being the world's biggest steel magnet (Laxmi Mittal) isn't exactly through innovation...but just good business ability. In free market economies, if you got can buy others ( think Corus, Landrover, Jaguar). India is still a land of poor ... almost half of world's poor live there. But its 'starting' to be a land of opportunities. The basic ingredients for that .. like access to cheap education, good technical universities, less red-tape are already there. I don't know why you talk about 'overrated call-centers' ... that was over a decade ago they generated highest dollar revenue for India. Now its not the case anymore. Big/innovative companies have set up research centers in India ( like Google, Microsoft, Bell labs, IBM, HP, ...) and I can assure you that its got nothing to do with main frame applications or COBOL :) The research they do in Indian centers is at the same level as done in American ones. Well...I got a phone call to make right now ... he he ... could continue more though :p


August 16, 2010 2:34 PM

Depends on how you measure innovation. If you measure Indian innovation by going to an American supermarket and trying to find "Made in India" goods, you'll certainly be disappointed as India is not an export oriented economy like China. Also, India is not just about call-centers anymore. More than half of Fortune-500 companies have set up their R&D centers in India. Go figure.


August 17, 2010 8:10 PM

You are right. India has no innovation to speak of. India is not the only place where R&D centers are situated. They are in China, South Africa, Ireland, etc. Indians do less research than smaller countries like South Africa and Ireland. Indians speak a lot but have no proof about their ability. Have you ever heard of a nobel prize winner from IIT or IISc.

I am not saying Indians are stupid but most Indians seem to ride on their IIT brethren's limited success. Everyone I have worked with from outside IIT have turned out to be a dud.

Furthermore, another unknown fact, India has supplied and armed terrorists in my country Sri Lanka for decades. It was our strategy to turn the terrorists on India itself and gave us success at last.

Indians always feel the whole world is against them. Even their failure at the Commonwealth Games is sometimes blamed on western attitude and not their own shortcomings. I hope the CWG are a collosal failure.


August 19, 2010 1:23 PM

There were lot of innovations done in ancient India, before all these guys used to live like savages. These savages plundered our wealth and made us poor. Now India is trying to get back on its feet still falling down sometimes. But it has better IT brains than these dumbos.


August 19, 2010 5:32 PM

Bing is made in India, my friend was working on the development of the project in MS R&D here, also most of the Google products that we use are also headed by Indians like the Google News. JLR is owned by the Tata Group. The Electric car technology has been developed by Indian entrepreneur and currently been licensed to GM along with independent production. And Bangalore has been recognized by Barack Obama as a threat to US jobs.


August 20, 2010 2:02 AM

India boasts of many innovations- they just don;t come in the shapes and sizes and with the IP protections that we are used to in the western world. Also, most innovations are in the service space. Case in point- travel the streets of INdia and you will see many examples from the tiffin dabbawalas in Mumbai to the ticketless insurance on Mumbai's trains, the arvind eye care system, the use of sachets to see many of the western world's consumer goods, the nano... Given the general lack of resources, the average Indian has no choice but to find ways to innovate..


August 21, 2010 3:20 AM

August 19, 2010 5:32 PM

Bing is made in India, my friend was working on the development of the project in MS R&D here, also most of the Google products that we use are also headed by Indians like the Google"
The IP belong to Microsoft and to Google and not to Indian people! Microsoft and to Google both have R & D in China and many other countries like UK, Germany etc.. and I don't see people from those countries claiming Microsoft and to Google products as their country IP!

PowerShot SD1100 IS digital camera battery

September 5, 2010 11:46 PM

if you got can buy others ( anticipate Corus, Landrover, Jaguar). India is still a acreage of poor ... about bisected of world's poor alive there. But its 'starting' to be a acreage of opportunities. The basal capacity for that .. like admission to bargain education, acceptable abstruse universities, beneath red-tape are already there. I don't apperceive why you allocution about 'overrated call-centers' ... that was over a decade ago they generated accomplished dollar acquirement for India. Now its not the case anymore. Big/innovative companies accept set up analysis centers in India ( like Google, Microsoft, Bell labs, IBM, HP

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