Context

• The government recently permitted certain Indian companies to directly list on select foreign stock exchanges, , including GIFT IFSC, Ahmedabad, which will allow these companies to access global capital and boost capital outflows.

How do companies currently list on foreign bourses?

• Domestic listed companies would use depository receipts — American Depository Receipts (ADR) or Global Depository Receipts (GDR) — to list in the overseas market. 
• Under this route, Indian companies wanting to get listed on foreign stock exchanges would give their shares to an Indian custodian, and depository receipts would be issued to foreign investors.
• Between 2008 and 2018, 109 companies raised Rs 51,847 crore through the ADRs/GDRs route. After 2018, none of the companies got listed overseas.

How will direct foreign listing benefit Indian companies?

• With the new provision, domestic companies can tap foreign markets to raise funds. It will offer them better valuation and exposure to trade in foreign currency such as the dollar. 
• It may also benefit the startup and unicorn community as another avenue to raise funds and increase their profile globally. It will also add to India’s foreign exchange kitty.

https://indianexpress.com/article/explained/explained-economics/direct-listing-foreign-exchanges-indian-companies-9012238