Eruditus to move domicile to India for IPO, exiting Singapore

Eruditus, a SoftBank-backed educational technology firm, intends to transition its domicile from Singapore to India ahead of its planned stock market debut, according to CEO Ashwin Damera. 

The move aims to leverage the favourable market conditions and liquidity in India's stock markets. 

Despite the groundwork for an IPO in India, Damera suggests the listing may be at least two years away.

India's burgeoning $4 trillion stock market has attracted major domestic and foreign investments, surpassing Hong Kong IPOs despite a 16 per cent decline last year. 

The country's benchmark stock indexes surged nearly 20 per cent in 2023, outperforming many global counterparts.

In recent years, several Indian companies have registered abroad, seeking better access to capital. 

However, with the current strength in Indian markets and improved regulatory environments, some firms are considering relocating their domiciles to India, despite potential tax implications.

Eruditus has enlisted accounting firm Ernst & Young (EY) to facilitate its domicile shift but did not respond to Reuters' queries. 

The company is also exploring potential acquisitions to enhance its talent pool. 

Eruditus, which has raised $585 million in primary capital to date, reported revenue of Rs 3,320 crore for the fiscal year ending June 2023, representing a 75 per cent increase from the previous year.

(With Reuters Inputs)