US space, tech IPOs spark Indian investor interest

Planned listings by OpenAI, Anthropic and SpaceX — three of the world’s most valuable firms — have spurred interest among domestic investors keen to tap into the artificial intelligence (AI) boom, but industry players have advised caution over access and a potential bubble.

- KHUSHBOO TIWARI & SAMIE MODAK

Brokers have been receiving queries from clients on the US application process as accessing these offerings may not be as straightforward as applying for a local initial public offering (IPO).

With the three firms expected to command a combined market capitalisation of around $4 trillion when they go public, the anticipated listings have sparked off discussions among wealthy individuals, family offices and globally focused retail investors looking to participate in the next phase of the AI trade.

However, unlike in India, where retail investors can bid for IPO shares under a quota reserved for them, access to high-profile US IPOs is largely restricted to institutional investors and select clients of investment banks. Although SpaceX is reportedly reserving a fourth of its $75-billion IPO for retail investors, applying in the quota won't be easy for Indian nationals.