Anthropic IPO: Anthropic, the AI firm behind the Claude chatbot, is gearing up for its stock market debut, giving investors an opportunity to gain exposure to the rapidly expanding generative AI sector.
Anthropic has set its IPO price range at $70 to $78 per share for an offering of 825 million shares of Class A common stock on the Nasdaq under the ticker symbol “ANT”.
For Indian investors, the proposed listing raises several questions, including whether they are eligible to subscribe to the IPO, how they can buy Anthropic shares and the tax implications of investing in overseas stocks.
With Anthropic targeting a valuation of up to $1.4 trillion and planning to raise as much as $64.4 billion, the offering could become one of the largest IPOs in stock market history. However, Indian investors may face an important limitation: India is not included in the list of countries covered under Anthropic’s proposed international retail IPO programme.
Anthropic IPO: Can Indian investors participate in the mega IPO?
According to the list of international retail brokers and selling agents shared by Anthropic on its Claude Help Centre, the proposed retail IPO offering will be available across Australia, Canada, Japan, the UK, Switzerland and nine European countries, including Denmark, Finland, France, Germany, Ireland, the Netherlands, Norway, Spain and Sweden. India, however, is not included in the list of eligible markets.
Anthropic has also clarified that it has not authorised any other firm or platform to promote or facilitate access to shares under its international retail offering. Consequently, Indian retail investors currently do not have access to Anthropic designated international IPO subscription route through an authorised intermediary in India.
Experts suggest that Indian investors can explore subscribing to overseas IPOs through international brokerage platforms or eligible institutional and private banking channels, subject to applicable regulatory requirements.
How Indian investors can buy Anthropic shares?
For Indian investors who are unable to secure shares through the IPO allotment, another option would be to buy Anthropic stock once it starts trading on the Nasdaq on November 19.
Following its listing, eligible Indian investors can purchase the company’s shares through international brokerage platforms offering access to US equity markets. However, such investments must comply with the Reserve Bank of India’s Liberalised Remittance Scheme (LRS), which permits individuals to remit up to $250,000 per financial year for approved overseas transactions.
However, being eligible under the LRS does not automatically provide access to all international IPOs. Investors must use an international brokerage platform or intermediary that supports participation in the specific IPO and accepts applications from Indian residents.
Such investments must comply with the Foreign Exchange Management Act (FEMA), Overseas Investment Rules and Regulations, and relevant RBI guidelines.
Before investing, individuals should check with their respective brokerage platforms regarding the availability of Anthropic shares, account eligibility, brokerage fees, currency conversion charges and other applicable terms.
It is important to note that purchasing shares after listing is different from participating in an IPO. Investors entering the secondary market will have to buy shares at the prevailing market price, which may differ considerably from the IPO issue price.
How Indian investors can buy Anthropic shares after listing?
For investors unable to obtain an IPO allotment, purchasing Anthropic shares after their stock market debut could be a more accessible alternative. However, they would have to buy the shares at the prevailing market price, which could differ significantly from the IPO price depending on listing-day demand and market sentiment.
Here’s a step-by-step guide on how to buy shares –
1. Open an international trading account through an Indian investment platform or an overseas broker that provides access to US stocks.
2. Complete the KYC process and submit the necessary documentation.
3. Transfer funds through an authorised banking channel under the Liberalised Remittance Scheme (LRS).
4. Once trading begins, search for Anthropic using its Nasdaq ticker symbol, ANT.
5. Place a buy order at the prevailing market price or the desired limit price.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
