SpaceX IPO: Can Indians invest in world's biggest issue ever? What RBI rule says

Elon Musk-backed SpaceX is reportedly eyeing a massive initial public offering (IPO), which could make it the world’s most valuable private company. Early reports suggest that the Musk-led firm may raise around $75 billion, potentially making it the largest IPO ever—far surpassing Saudi Aramco’s $25.6 billion issue. The offering could value SpaceX at nearly $2 trillion, significantly higher than its previous fundraise valuation of about $800 billion.

According to media reports, roadshows for the SpaceX IPO could begin as early as June 2026. An EY report noted that 216 IPOs in the US raised $45.5 billion, while more than 1,290 issues globally raised $171.8 billion. Against this backdrop, SpaceX’s reported $75 billion IPO has the potential to reshape the global IPO landscape.

SpaceX IPO: What’s in it for Indian investors?

Market experts say that while Indian investors are not legally prohibited from participating in a potential SpaceX IPO, doing so requires a precise understanding of regulatory and structural constraints. While outbound investment is permitted, participation in a foreign IPO remains practically challenging.

Under the Foreign Exchange Management Act (FEMA), 1999, read with the Liberalised Remittance Scheme (LRS) of the Reserve Bank of India (RBI), a resident individual is allowed to remit up to $250,000 per financial year for acquiring foreign securities. In principle, this includes subscribing to an overseas IPO, said Sonam Chandwani, Managing Partner at KS Legal & Associates.

“In practice, IPO allocations in jurisdictions like the United States are controlled by underwriters and are largely limited to institutional investors and select domestic clients. This makes access for foreign retail investors extremely restricted. As a result, while there is no statutory restriction under Indian law, the lack of access to eligible intermediaries and allocation channels effectively limits meaningful participation,” she added.

From a compliance standpoint, any such investment must be routed through authorised dealer banks in accordance with LRS conditions, without leverage, and must be properly disclosed under Indian tax laws, including reporting of foreign assets and gains.

Market participants also noted that while outbound investment is allowed, participation in foreign IPOs is structurally constrained. In most cases, Indian investors will have a practical opportunity to invest only after the company is listed and shares become available in the secondary market.

Indian investors can technically participate in a potential SpaceX IPO through the LRS route, but access at the IPO stage is likely to remain limited, as allocations are typically skewed towards institutional investors globally, said Viram Shah, Co-founder and CEO of Vested Finance. He added that the more practical route would likely be post-listing participation through global investing platforms.

“The exposure to SpaceX is not entirely new. Some global funds and vehicles, such as Destiny Tech100 Inc, already hold SpaceX in their portfolios. There have also been select private market opportunities over the past year through Vested, where investors could access the company at valuations in the $360–380 billion range,” he said.

SpaceX IPO: Why the hype?

SpaceX is not just a rocket company. Its Starlink division has positioned it as a global internet provider, while integration with xAI and X adds artificial intelligence (AI) and real-time data capabilities to its business ecosystem. This creates a diversified and integrated offering for investors.

Elon Musk’s strong global following further fuels investor interest. Reports suggest the IPO could offer up to 30 per cent allocation for retail investors—significantly higher than the typical 5–10 per cent range.

A mega IPO like SpaceX, potentially raising $75 billion, could test global primary market risk appetite. Other global giants such as Anthropic, OpenAI, Stripe, and ByteDance may benefit from the success of such a large issue. On the flip side, if the IPO fails to meet expectations, it could dampen sentiment in global primary markets.