Freshworks Files DRHP for Secondary IPO Listing on NSE: What It Means for Indian Investors

Why Freshworks’ NSE Listing Move Matters Today

Software-as-a-Service (SaaS) major Freshworks has taken a major step toward strengthening its presence in India’s capital markets.

The company has filed a Draft Red Herring Prospectus (DRHP) for a proposed secondary listing on the National Stock Exchange (NSE). The move is significant because Freshworks is already publicly listed in the United States. A secondary listing in India could open the doors for domestic investors to participate more easily in the company’s growth story.

For India’s fast-growing tech ecosystem, this development signals growing confidence in Indian capital markets and deepening ties between global SaaS companies and local investors.

Here is a detailed breakdown of what this means.

What Is Freshworks?

Freshworks is a Chennai-origin SaaS company that provides cloud-based software for customer engagement, IT service management and sales automation.

It serves businesses across the world with products designed for:

• Customer support
• IT helpdesk management
• CRM solutions
• Marketing automation

Freshworks became one of the first Indian SaaS firms to list in the United States, marking a major milestone for India’s startup ecosystem.

Understanding the DRHP Filing

What Is a DRHP?

A Draft Red Herring Prospectus (DRHP) is a document filed with market regulators before a company proceeds with a public offering or listing.

It contains details such as:

• Business model
• Financial performance
• Risk factors
• Shareholding pattern
• Use of proceeds

In India, companies file DRHPs with the Securities and Exchange Board of India (SEBI).

Freshworks’ Secondary Listing Plan

Freshworks’ filing indicates its intention to pursue a secondary listing on the National Stock Exchange.

A secondary listing means the company’s shares, already listed on a foreign exchange, will also be traded on an Indian exchange.

This does not mean a completely new IPO in the traditional sense. Instead, it allows shares to be traded locally, subject to regulatory approvals.

Why a Secondary Listing in India Now?

1. Access to Indian Investors

A domestic listing could allow Indian retail and institutional investors to participate directly in Freshworks’ stock without relying on foreign brokerage accounts.

This improves:

• Accessibility
• Liquidity
• Domestic investor participation

2. Stronger India Connect

Freshworks has deep roots in Chennai and continues to maintain significant operations in India.

A listing on the NSE strengthens its brand position in its home market.

3. Growing Interest in Tech Stocks

India’s stock markets have seen increasing interest in technology and digital companies.

A secondary listing could align Freshworks more closely with India’s expanding tech investor base.

How Secondary Listings Work

When a company lists on multiple exchanges:

• Shares may be traded in both markets
• Pricing may vary slightly due to currency differences
• Regulatory compliance must be maintained in both jurisdictions

In Freshworks’ case, it must comply with both US securities regulations and Indian regulatory norms.

Impact on Freshworks’ Shareholders

For existing global shareholders, a secondary listing may:

• Increase overall liquidity
• Expand the investor base
• Improve market visibility

For Indian investors, this could mean:

• Direct exposure to a global SaaS company
• Participation in a business with international revenue streams

However, final details such as pricing and structure will be clarified after regulatory review.

Freshworks’ Financial Profile and Growth Focus

Freshworks operates in the competitive global SaaS industry.

Its key revenue drivers include:

• Subscription-based software products
• Enterprise customer contracts
• Recurring revenue models

The SaaS model is built on predictable subscription income, which investors often value for stability.

While specific financial numbers will be detailed in the DRHP, investors typically review:

• Revenue growth
• Profitability metrics
• Operating margins
• Customer expansion rates

These factors play a major role in stock valuation.

India’s Rising Role in Global SaaS

Freshworks’ move highlights India’s growing role in the global SaaS market.

India is now home to:

• Multiple unicorn startups
• Rapidly growing SaaS exports
• Strong developer talent pool

Industry estimates show that India’s SaaS ecosystem is expected to contribute significantly to global software markets over the coming years.

A secondary listing by a global SaaS company with Indian origins reinforces investor confidence in the sector.

Regulatory Process Ahead

After filing the DRHP, the company must:

1. Receive observations and approvals from SEBI
2. Finalise pricing and structure
3. Announce listing timelines

The timeline for listing depends on regulatory clearance and market conditions.

Investors should track official announcements for accurate updates.

Market Reaction and Investor Sentiment

Tech listings often attract strong investor interest, especially when linked to well-known brands.

However, stock performance depends on:

• Market sentiment
• Global economic conditions
• Tech sector performance
• Currency movements

Investors are advised to carefully review the DRHP once publicly available and consult financial advisors before making investment decisions.

What This Means for India’s Stock Market

Freshworks’ proposed NSE listing reflects broader trends:

• Increasing global companies exploring Indian listings
• Rising retail participation in equity markets
• Strong domestic capital market growth

India’s stock exchanges have seen rising demat account openings in recent years.

Technology companies are becoming a larger part of the market narrative.

Comparisons with Other Indian-Origin Tech Listings

Several Indian tech firms have explored domestic listings in recent years.

Freshworks stands out because:

• It was among the early Indian SaaS firms to list overseas
• It has strong global revenue exposure
• It represents India’s export-oriented software success story

A successful secondary listing could encourage other global Indian tech firms to consider similar moves.

Risks Investors Should Consider

While secondary listings offer opportunity, investors must evaluate risks:

• Market volatility
• Global tech sector slowdowns
• Currency fluctuations
• Regulatory changes

Investment decisions should be based on careful reading of official filings and professional advice.

Freshworks’ Long-Term Vision

Freshworks continues to focus on:

• Product innovation
• Expanding enterprise clients
• Strengthening customer experience tools
• Competing with global SaaS players

A dual-market presence could support long-term capital access and brand visibility.

Why This Is a Milestone for Indian Startups

Freshworks’ journey from Chennai startup to US-listed SaaS firm and now seeking NSE listing reflects the evolution of India’s startup ecosystem.

It shows:

• Indian startups can scale globally
• Indian markets can support tech listings
• Capital markets are becoming more integrated

For aspiring founders, this move sends a strong signal about India’s growing global influence in technology.

What Happens Next?

Key steps ahead include:

• SEBI review of the DRHP
• Public disclosures of detailed financials
• Final listing timeline announcement

Investors and market watchers will closely monitor updates.

Bottom Line

Freshworks filing a DRHP for a secondary listing on the NSE marks an important development for Indian capital markets and the SaaS ecosystem.

It could give Indian investors easier access to a global tech company with strong domestic roots.

While regulatory approvals are pending, the move reflects confidence in India’s growing stock market depth and the rising strength of Indian-origin technology firms.

For India’s startup and investment ecosystem, this is more than a listing plan. It represents the continued integration of Indian innovation with global capital markets.

Disclaimer: The information presented in this article is intended for general informational purposes only. While every effort is made to ensure accuracy, completeness, and timeliness, data such as prices, market figures, government notifications, weather updates, holiday announcements, and public advisories are subject to change and may vary based on location and official revisions. Readers are strongly encouraged to verify details from relevant official sources before making financial, investment, career, travel, or personal decisions. This publication does not provide financial, investment, legal, or professional advice and shall not be held liable for any losses, damages, or actions taken in reliance on the information provided.

Financial Disclaimer: Markets and investment-related products are subject to risks and fluctuations. Readers should conduct their own research and consider consulting a qualified financial advisor before making any investment decisions.

Last Updated on Friday, February 13, 2026 11:23 am by Startup Newswire Team

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