Anthropic, the company behind AI chatbot Claude, is moving closer to a stock market debut, with a Nasdaq listing reportedly targeted for the end of November. The company submitted its IPO prospectus on October 26 and is expected to trade under the ticker symbol 'ANT'.
The upcoming offering has prompted Indian investors to explore whether they can participate in the US IPO and secure shares at the offer price. For those unable to get an allotment, could buying Alphabet, Google’s parent and an investor in Anthropic, provide an alternative way to gain indirect exposure?
How Indian investors can access foreign IPOs and why allotment is difficult
Foreign IPO investing is not prohibited under RBI's LRS scheme, which permits remittances of up to US$ 250,000 per resident in a financial year. Resident Indians can invest in overseas securities under the LRS/OPI framework. However, unlike India, the US IPO market has no fixed retail or foreign retail quota, and allocations are decided by the underwriters, with most shares typically going to institutional investors.
"Indian investors can buy foreign IPOs through direct subscriptions, foreign brokers, institutional or private banking channels, or even through pre-IPO investments. The process requires eligible brokers or intermediaries and must comply with FEMA's Overseas Investment Rules, Regulations, RBI Master Directions and LRS limits," said Sanjit Singh Paul, smallcase manager and Managing Director, Modulor Global.