mumbai, April 20 -- Nasdaq-listed travel company MakeMyTrip (MMT) is weighing the benefits of listing its Indian arm via Indian Depository Receipts (IDRs) rather than a traditional initial public offering (IPO), two people familiar with the matter said on the condition of anonymity. "An IDR structure is on the table, being viewed as a method to manage tax obligations that would be triggered by the Mauritius-based parent entity-MakeMyTrip Ltd-during a secondary sale of shares in a domestic IPO," said the first person. The development follows the company's reaffirmation of its strategic priorities on 16 March, including plans for a potential listing of its India business after the consolidation of its brands, such as RedBus India, under MakeMyTrip (India) Pvt. Ltd. The firm provides flight, hotel, and bus bookings through its platforms, including Goibibo. Experts say the move may have been driven by the 15 January Supreme Court ruling in the Tiger Global-Flipkart tax case, which held that a Mauritius-based holding company participating in an offer for sale (OFS) in an Indian IPO would be liable to pay capital gains tax in the country on such transactions. "In practical terms, this means that reliance on Mauritius purely as a tax-efficient holding jurisdiction is significantly weakened in the context of IPO exits," said Sonam Chandwani, managing partner, Mumbai-based law firm KS Legal & Associates. The IDR route allows a foreign-listed firm to remain domiciled abroad while accessing local liquidity by issuing receipts to Indian investors that are backed by shares held by a custodian, avoiding tax liabilities. "There is renewed interest in the IDR route. Especially after SEBI (Securities and Exchange Board of India) has begun a revamp process to improve the viability of the product," the second person said. Business Standard was the first to report on 7 April that the regulator was discussing whether IDRs can be repositioned as a credible route to deepen India's capital markets. As of now, Standard Chartered Plc remains the only major foreign entity to have used the IDR framework in the country, having listed receipts in 2010 to a limited response. The bank delisted its IDRs in July 2020 owing to low participation. "Unless the regulatory changes go far enough to address fungibility, investor rights, and ease of conversion into underlying equity, the instrument will continue to be perceived as a constrained proxy rather than true equity participation," Chandwani explained. MakeMyTrip, which has a market capitalisation of approximately $5.7 billion on the Nasdaq Composite, has not yet made a decision, both people said. It may choose to maintain its current listing structure or pursue a different path for domestic capital raises, they added. "As part of its long-term growth objectives, the company is in the process of evaluating a potential listing in India, which could provide an additional avenue to access capital, including from domestic institutional and retail investors as well as enable it to provide India-listed equity as potential consideration for growth initiatives," a MakeMyTrip spokesperson said. "Any potential India listing remains subject to, among other things, market conditions, regulatory approvals, and customary corporate considerations. The company will make any further public disclosures in this regard as and when appropriate," the spokesperson added....