Synopsis : Elon Musk’s SpaceX is set to launch what could become the largest IPO in Wall Street history, targeting a massive $75 billion fundraising. While Indian investors cannot participate directly in the IPO allotment, there are still ways to gain exposure once trading begins.
Elon Musk’s SpaceX is preparing for a historic market debut that could redefine IPO records globally. The aerospace giant plans to raise $75 billion by selling 555.6 million shares at $135 apiece, valuing the company at an eye-popping $1.75 trillion.
If successful, the offering would become the largest initial public offering in Wall Street history, eclipsing previous record-breaking listings and cementing SpaceX’s status as one of the world’s most valuable private companies.
The final IPO price is expected to be determined on June 11, while trading is likely to begin on Nasdaq under the ticker symbol SPCX on June 12.
Can Indian Investors Apply for the SpaceX IPO?
The simple answer is no.
Unlike India's IPO process, where retail investors can participate through the ASBA mechanism, the US IPO system primarily allocates shares to institutional investors, hedge funds, pension funds, mutual funds and select high-net-worth clients.
As a result, Indian retail investors generally do not have direct access to the IPO allotment process.
According to Subho Moulik, Founder and CEO of Appreciate, Indian investors are unlikely to receive IPO allotments but can invest once the stock starts trading on the secondary market.
Why Indians Cannot Access the IPO Price
The US book-building process differs significantly from India's public issue framework.
There is no equivalent mechanism that allows Indian residents to bid directly in a US IPO. Even though SpaceX has earmarked a substantial portion of shares for retail investors, access remains largely restricted to customers of US-based brokerage platforms.
Popular platforms expected to participate in the allocation process include Robinhood, Fidelity, Charles Schwab, ETrade and SoFi Technologies.
However, these brokerages generally cater to US residents and are not directly accessible under India's Liberalised Remittance Scheme (LRS) framework.
How Can Indians Invest in SpaceX?
Indian investors have three primary routes to gain exposure to SpaceX after listing:
1. Buy Shares After Listing
The most straightforward option is purchasing SpaceX shares on Nasdaq after trading begins.
Investors can use overseas investing platforms that offer access to US-listed stocks under the Reserve Bank of India's Liberalised Remittance Scheme.
However, the market price may differ significantly from the IPO price of $135 depending on investor demand after listing.
2. Invest Through NSE IX
Investors may also gain access through NSE International Exchange (NSE IX) operating from India's International Financial Services Centre (IFSC), subject to platform availability and regulatory norms.
3. Through Global Feeder Funds
Mutual funds and international feeder funds could eventually add SpaceX shares to their portfolios, providing indirect exposure for retail investors.
Retail-Friendly IPO, But Not for India
Interestingly, SpaceX is reportedly allocating nearly 30% of the IPO to retail-focused platforms, which is unusually high by US standards.
Despite this retail-friendly structure, Indian investors remain excluded from the allotment process because the participating brokerages operate primarily within the US financial system.
Why SpaceX Is Generating So Much Excitement
SpaceX has transformed the global space industry through reusable rocket technology, satellite internet services through Starlink, and long-term ambitions around interplanetary travel.
The company has become a critical partner for governments, commercial enterprises and defence agencies worldwide.
Its proposed valuation of $1.75 trillion would place it among the most valuable publicly traded companies globally.
The Bottom Line
Indian investors may miss out on the IPO allotment itself, but they are not entirely locked out of the SpaceX story. Once trading begins on Nasdaq, investors can purchase shares through international investing platforms, IFSC-based exchanges or potentially through global feeder funds.
The biggest uncertainty remains valuation. While the IPO price is set at $135 per share, the market will ultimately decide where SpaceX trades once investors begin buying and selling the stock.
Disclaimer : This article is for informational purposes only and should not be construed as investment advice. Overseas investments involve market, currency and regulatory risks. Investors should consult a SEBI-registered financial advisor before making any investment decisions.
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