SpaceX to debut blockbuster IPO. But can Indians invest?

A blockbuster SpaceX initial public offering (IPO) is set to list on Wall Street on Friday (June 12).

The Elon Musk-led firm is planning to raise $75 billion (Rs 7.18 lakh crore) against a valuation of $1.75 trillion (Rs 167.60 lakh crore). The IPO could potentially turn Musk, the world’s richest man, into the first trillionaire.

Even though many are already expressing scepticism about the valuation, others are wondering if Indian investors can avail of the offering. But what is an IPO? Can Indians invest in the SpaceX IPO?

Let’s take a closer look

What is an IPO?

An IPO is what occurs when a private firm sells its shares to the public for the first time – hence the term initial public offering. It transfers a firm’s ownership from private to public hands, which is why it is sometimes referred to as "going public."

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As per Fidelity, IPOs can be launched by both start-ups and those that have been in business for years. They can do so for a variety of reasons, including raising capital, paying off debt, funding growth and creating liquidity. A company goes public by choosing a lead underwriter to help with the complicated process. The underwriter, in turn, brings together investment banks and broker-dealers, also known as a syndicate, that help sell shares to institutional and retail investors.

What do we know about the SpaceX IPO?

The firm is set to list on the Nasdaq under the SPCX ticker. SpaceX has fixed the IPO price at $135 (Rs 12,929) per share for 555.6 million shares. According to The Times of India, SpaceX has set aside around 25 per cent of shares for individual investors. This is far more sizeable than other IPOs. SpaceX has also similarly set aside 30 per cent of shares for retail investors.

As per Moneycontrol, the IPO is being structured as an all-primary issue. This means the entire amount raised from the IPO will go straight to SpaceX. Existing shareholders in SpaceX are not selling private shares as part of the IPO. They will continue to be subject to lock-in restrictions following the listing.

SpaceX has fixed the IPO price at $135 per share (Rs 12,929) for 555.6 million shares.

According to regulatory filings, Musk has said he will continue to control the company after the IPO. Musk will have around 82.4 per cent of voting rights via Class B shares. Each Class B share has 10 votes per share. The public, meanwhile, will receive Class A shares, which have just one vote per share. This is normal practice when it comes to IPOs. The shares are expected to start trading on the Nasdaq on June 12.

A Reuters report that cited regulatory filings showed that SpaceX secured a $20 billion (Rs 1.92 lakh crore) bridge loan in April to refinance a substantial portion of its debt ahead of the IPO. The borrowing was arranged by a syndicate of lenders and could require repayment from IPO proceeds if it is not refinanced or repaid through other sources within six months of the offering.

Can Indians invest in SpaceX?

Not directly.

Indian investors use the ASBA system in order to subscribe to IPOs. However, the US system does not allow foreign retail investors to buy IPOs directly.

"Indian investors can't invest in SpaceX at the time of the IPO. They can directly or indirectly participate post-listing. Feeder funds are the cheapest and indirect way to participate in the SpaceX growth story. The challenge here may be the limited or minuscule exposure the fund may have towards SpaceX," Sunny Agrawal, head, fundamental research, SBI Securities, told Business Standard.

According to The Times of India, Indian investors will be able to buy SpaceX shares via the secondary market. However, they will have to use international brokers under the Reserve Bank of India’s Liberalised Remittance Scheme (LRS). Under LRS, Indian residents can send up to $250,000 (Rs 2.39 lakh crore) per financial year abroad for permitted investments.

India’s Foreign Exchange Management (Overseas Investment) Rules, 2022 also allow overseas investment into Overseas Direct Investment (ODI) and Overseas Portfolio Investment (OPI). Individuals who follow these rules can invest overseas via approved platforms and channels.

Indian investors use the ASBA system in order to subscribe to IPOs. However, the US system does not allow foreign retail investors to buy IPOs directly. Reuters

“Under LRS, investors can open accounts on global access provider platforms digitally, transfer funds and buy shares of SpaceX once it is listed. The present feeder funds in domestic and GIFT City do not have SpaceX in their composition, but once the stock is listed we may find some feeder funds investing into S&P 500 or Nasdaq 100 ETFs and stocks to have SpaceX in their fund strategy,” Niteen Dongare, director & CEO, Anand Rathi International Ventures IFSC Pvt Ltd, told the newspaper.

It must also be noted that not everyone is enthusiastic about the SpaceX offering. Morningstar, in a note published earlier this week, said that SpaceX appears "significantly overvalued" and suggested investors may find more attractive entry points after the stock begins trading in the secondary market. The company also remains a loss-making enterprise. In 2025, SpaceX was $4.94 billion (Rs 47,000 crore) in the red even as it reported revenue of $18.67 billion (Rs 1.79 lakh crore).

Analysts have cautioned against buying into the hype.

“Firstly, the dependency on founder Elon Musk, who runs other businesses like Tesla and other ventures simultaneously. Also, revenue dependency on US federal agencies. Around one-fifth of FY24–25 revenue came from US federal agencies. The S-1 notes also mention that local assets of Starlink were frozen by Brazil, thus other satellite ventures can be affected. Starship execution risk is always there, as we have seen out of 12 flights so far till 2025, three flights failed, and that can affect the top line of the company. Fourthly, the AI cash burn, which needs a lot of spending,” Dongare told the outlet.

However, even if individuals do not apply for these SpaceX shares, they may end up owning a small piece of the company. How, you may ask? Via index funds that invest in the US stock market. Remember, rushing into IPOs may be injurious to your health.

FAQs

1. What is the SpaceX IPO and why is it significant?

The SpaceX IPO refers to the company’s plan to go public by offering its shares to investors for the first time. It is significant because it could be one of the largest IPOs in history, with a planned $75 billion raise (Rs 7.18 lakh crore) against a valuation of $1.75 trillion (Rs 167.60 lakh crore). The listing could also make Elon Musk the world’s first trillionaire.

2. Can Indian investors participate in the SpaceX IPO?

No, Indian retail investors cannot directly invest in the SpaceX IPO at the time of listing due to restrictions in the US IPO system. However, they can invest in SpaceX shares after the listing through international brokers under the Reserve Bank of India’s Liberalised Remittance Scheme (LRS), or indirectly via global funds and ETFs.

3. What are the key risks associated with investing in SpaceX?

Experts have flagged the company’s dependence on Elon Musk, its reliance on US government contracts, execution risks in its space missions such as Starship, and high cash burn due to investments in AI and infrastructure.

With inputs from agencies