MNC selldowns

As multinational corporations capitalise on India's valuation premium, there are reasons for caution as well

I have been investing in the Indian markets for multiple decades. Throughout this time, we have consistently seen global companies continuously increase their stakes in their Indian operation. Multinational corporations (MNCs) have consistently looked for opportunities to increase their economic ownership or take their Indian subsidiaries fully private, either through mergers with private companies, stock buybacks, or preferential allotments. The higher the stakes, the better, with full ownership of the Indian business as the ultimate goal. Many increased their stakes at a premium to the then-prevailing market price, implicitly signalling that markets were underestimating the long-term prospects