SpaceX IPO Buzz Pushes Indian Investors Towards Global Space ETFs

Indian investors are increasingly turning to global space-focused exchange-traded funds (ETFs) ahead of the expected initial public offering (IPO) of SpaceX. The proposed IPO is expected to target a valuation of nearly USD 1.75 trillion and raise as much as USD 75 billion, according to market estimates.

The size of the issue has drawn attention from global investors, including Indians looking for exposure to sectors not available on domestic exchanges. Market participants said overseas investing by Indians has already been rising steadily.

Liberalised Remittance Scheme (LRS) outflows crossed USD 1.5 billion in FY24, up 20% year-on-year (YoY). The growing interest in the space economy also reflects the absence of listed pure-play space companies in India.

India Lacks Listed Space Pure Plays

India’s listed aerospace and defence universe remains limited when compared with global space companies. Paras Defence and Space Technologies, seen as the closest domestic listed space-focused company, currently has a market capitalisation of around ₹6,000 crore.

By comparison, Rocket Lab carries a valuation of nearly USD 75 billion (roughly ₹6.4 lakh crore), while SpaceX’s expected valuation is significantly larger than the entire listed Indian aerospace and defence sector combined. The domestic spacetech ecosystem is also largely unlisted. Skyroot Aerospace became India’s first spacetech unicorn in May 2026 with a valuation of USD 1.1 billion.

Pixxel recently secured a ₹1,200 crore earth-observation contract from IN-SPACe. India’s first dedicated spacetech-focused investment vehicle, the Antariksh Venture Capital Fund, also achieved a first close of ₹1,005 crore in November 2025.

ETFs Become Preferred Route Before IPO

In the absence of direct listed opportunities, investors are looking at overseas ETFs for exposure to the global space economy. The ERShares Private-Public Crossover ETF currently has nearly 23% exposure to SpaceX through a special purpose vehicle structure.

The Procure Space ETF, which rose 66% in 2025, invests in companies involved in satellite communications, launch infrastructure and related services. Another fund attracting attention is the ARK Space Exploration ETF. Investors can access these products through the LRS route using overseas investment platforms.

SpaceX Draws Attention Beyond Launch Business

Market participants said investor interest in SpaceX is not limited to rocket launches. Starlink, the company’s satellite internet business, generated USD 11.4 billion in revenue in 2025, with earnings before interest, taxes, depreciation, and amortisation (EBITDA) margins of 63%. The business had 10.3 million subscribers across 164 countries as of the first quarter of 2026.

SpaceX’s launch business accounted for nearly 84% of the global orbital launch market in 2025, with 165 launches during the year. The company’s artificial intelligence (AI) infrastructure operations are also attracting investor attention. Its Colossus AI data centre reportedly generates about USD 1.25 billion a month through a compute contract with Anthropic.

Experts Warn Against Chasing Listing-Day Gains

Market experts cautioned investors against chasing sharp listing-day rallies in large US IPOs. Recent IPO performance in the US has remained mixed. The Renaissance IPO Index returned 5% against an 18% rise in the S&P 500.

Shares of Figma surged after listing before correcting sharply later, while CoreWeave delivered strong gains after its March 2025 debut. Experts also pointed out that Indian investors do not get access to the US IPO allocation process in the same way as domestic IPOs. Most Indian investors can only buy shares after listing and price discovery.

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Taxation also remains a key consideration. Gains on foreign equities held for less than 24 months are taxed at applicable income-tax slab rates, while holdings beyond 24 months attract 12.5% long-term capital gains tax without indexation benefits.

Sources:

The Economic Times

CNBC