Cognizant, a U.S.-based IT services giant, is actively considering a listing on Indian stock exchanges, a strategic move potentially driven by the promise of valuation parity with its Indian peers. This could make Cognizant the first foreign IT services company to list in India. The company is evaluating both a primary offering, which involves issuing new shares to raise capital, and a secondary listing, which would allow its existing NASDAQ-listed shares to be traded on Indian exchanges.
The primary motivation behind this potential listing appears to be the opportunity to narrow the valuation gap between Cognizant and its Indian counterparts. Currently, Cognizant's shares trade at a price-to-earnings ratio of around 13 times, significantly lower than Indian firms like Infosys, TCS, and HCLTech, which command multiples above 22 times. A listing on Indian bourses could enhance Cognizant's market profile among Indian institutional and retail investors, potentially leading to a more favorable valuation.
Cognizant's Chief Financial Officer (CFO), Jatin Dalal, addressed the possibility of the listing during a recent post-earnings conference call. He stated that the company is engaging with various stakeholders in both India and the U.S. to assess the implications of such a move. Dalal emphasized that any decision would be made in the best interests of shareholders and would be subject to market and other factors.
India is a crucial hub for Cognizant's global operations. More than two-thirds of its workforce, totaling 349,800 employees, is based in India. The company operates extensive delivery centers in cities like Chennai, Hyderabad, and Pune, serving clients worldwide from its Indian base. In the third quarter of 2025, Cognizant added 6,000 employees and plans to hire 20,000 freshers in 2025, an increase from 9,000 the previous year.
A domestic listing could also strengthen Cognizant's ties with the Indian capital market and align it more closely with local peers in the eyes of clients and employees. It may offer the company a fresh funding avenue, boost its brand visibility, and help attract top technology talent in an increasingly competitive job market.
However, a foreign company pursuing a listing in India faces intricate regulatory requirements. Unlike most Indian IT companies, which are locally registered, Cognizant would need to navigate complex frameworks, dual compliance requirements, and tax considerations. Market experts caution that balancing reporting standards between U.S. and Indian exchanges will be particularly challenging.
Despite these challenges, if Cognizant's India listing is successful, it could pave the way for other multinational IT and technology firms to tap into the country's growing capital markets. Cognizant's potential IPO listing follows a trend of IT firms deepening engagement with Indian markets.
