Mumbai: As negotiations between Brussels and New Delhi over the EU-India trade agreement gather pace, a slew of European multinationals are increasingly exploring listing their Indian subsidiaries in Mumbai.
Investment bankers said they are already seeing a clear uptick in enquiries for initial public offerings (IPOs) from European industrial companies, particularly in auto components, speciality chemicals and clean energy, especially after the trade deal. More notably, the vibrant domestic fund-raising market – where multinational companies have been able to sell shares at eye-popping valuations in the last two years – is also encouraging them to explore domestic listings.
According to bankers, German auto components firm MAHLE GmbH and Swedish gaming company Modern Times Group, through its Indian mobile gaming subsidiary PlaySimple are preparing to file draft red herring prospectuses (DRHPs) with the market regulator for proposed IPOs soon. Danish brewer Carlsberg is also contemplating an IPO. Emails sent to the companies remained unanswered.
Agencies
Auto parts, specialty chem & clean energy cos among those keen to unlock value
This week, Italian giant Bonfiglioli Transmissions filed a DRHP for a ₹2,000 crore IPO. Last year, German Green Steel & Power received Sebi nod to go ahead with the IPO and will be launching its IPO soon. SAEL Industries, an Indian renewable energy firm backed by Norwegian state-run fund Norfund, filed papers in November 2025 for an ₹4,575 crore IPO.
“The emerging interest from European industrial, auto-component and clean-energy firms signals a deeper level of confidence in India’s regulatory architecture, disclosure standards and institutional investor base,” said Bhavesh Shah, managing director and head – Investment Banking, Equirus Capital. “It is the growing base of the domestic institutional investors that is triggering this trend.”
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Shah said if the momentum in the IPO market sustains, India could evolve into a preferred regional hub for multinational listings.
Several mandates are believed to be at the pre-filing stage, with listings expected over the next 12 to 18 months. The pipeline, according to bankers, spans sectors from precision engineering and renewable energy equipment to consumer-facing brands with deep European heritage. “The conclusion of the India-EU Free Trade Agreement, has turned India’s capital markets into a strategic expansion route for European multinationals specifically for European automakers,” said Neha Agarwal, MD and head, Equity Capital Markets, JM Financial Institutional Securities.
“Following the successful listings of Orkla India and Carraro India, we are seeing a structural shift where European parents no longer view India just as a manufacturing hub, but as a primary destination to unlock equity value,” according to Agarwal.
“With firms like Bonfiglioli now in the pipeline, the FTA acts as the ultimate ‘confidence bridge’, allowing European giants to tap into India’s high-valuation premiums and capital to fund their global green ambitions.”
Not all are convinced the floodgates’re about to open. Dev Chandrasekhar, partner at Mumbai-based valuations and branding advisory firm Transcendum, expects listings by European firms in India to be “selective and opportunistic rather than a stampede”. “For European companies seeking to de-risk supply chains away from China while accessing a $4 trillion economy, an Indian listing may no longer be optional, but it may be inevitable… let’s not get ahead of ourselves because the EU-India deal is still being negotiated.”
Also, many European firms may be sceptical of listing here “European companies are notoriously cautious about the governance dilution that comes with a public listing in an emerging market,” said Chandrasekhar. “The regulatory environment has improved, but Sebi’s disclosure norms, related-party transaction scrutiny and promoter lock-in requirements can be uncomfortable for European sponsors used to lighter-touch regimes.”
