Elon Musk’s SpaceX on Thursday, 11 June, launched the biggest-ever initial public offering (IPO) in the United States at $135 per share, quickly making the rocket company one of the world’s most valuable companies. The listing raised a record $75 billion from 555.56 million shares, valuing SpaceX at a record $1.77 trillion.
In fact, the successful IPO is set to make the world’s first trillionaire, with his net worth estimated to reach over $1.1 trillion after US markets open on Friday, 12 June, largely driven by his stake in SpaceX.
Here’s how you, as a common investor from India, could have a piece of the pie:
Can Indians invest in US stock markets?
The short answer is yes. Indians can invest in US stocks directly or indirectly through or GIFT City under the Reserve Bank of India’s Liberalised Remittance Scheme (LRS), which limits remittances to $250,000 per financial year, according to a Clear Tax report.
If your remittances cross the threshold, Tax Collection at Source (TCS) will apply and can be adjusted in your income-tax returns (). Further, rules on capital gains and dividend income gains will also apply.
In order to invest in or any other US stock, Indian investors can:
- Directly open an international brokerage account, subject to the central bank’s LRS. Here, you have the option to engage a domestic agent who partners with US-based brokers or engage with a global broker with a presence in India. While the first option may have some limits in the kind of trades you can make, the second comes with associated costs and fees.
- For indirect investment, you can choose in global markets or international exchange-traded funds (ETFs) for trading through a demat account or brokerage.
How much could $10,000 in SpaceX earn for you?
According to an analysis by The Motley Fool, at its target valuation, SpaceX would trade x95 times its $18.67 billion in in 2025, and while that’s a 33% growth rate compared to 2024, it’s still a “lofty” price-to-sales ratio. The company is offering less than 5% of shares in the IPO (30% of which is for retail investors), which allows Musk to keep a 82% voting stake in the company.
The report felt that while SpaceX would rocket after its debut, the high would be brief as investors look to book a quick profit, before the stock levels to a “more sustainable price-to-sales ratio”.
Here’s the estimated math: If SpaceX grows revenue by 30% to $24.3 billion in 2026 and 30% again to $31.5 billion in 2027, and trades x50 times its current-year sales by June 2027, the eventual market capitalisation would reach $1.58 trillion — an 11% decline from its target valuation.
It noted that $10,000 invested in today would be less than half, below $5,000, in less than a year’s time, adding that the brief spikes might occur, but “too much growth has already been baked into its stock”.
A Reuters report offered similar caution to small , saying they could face significant hardship in early trading, as well as continued volatility for weeks and even months afterwards. It said that while big institutions have the benefit of deep pockets and a reasonably high pain threshold for losses, the same cannot be said for the average retail investor.
Want to invest in US stocks? Here’s a stepwise guide
- Choose between the direct or indirect investment method and a platform you can trust — this would be a SEBI- or IFSCA-regulated broker.
- Complete your KYC and W-8BEN form to comply with Indian and US taxation requirements.
- You will need to ensure your account has sufficient and use the RBI’s LRS programme to send money and convert your Indian rupees to US dollars to start investing.
- It is advisable to start small with your first order, some shares come for as little as $1.
- Track your taxes in India and ensure your foreign income, , interest earnings or dividend are appropriately reported in your ITR as per Schedule FA, FSI, Form 67.
- To avoid double taxation in the US and India, you can also use the India-US Double Taxation Agreement () to avoid paying tax twice.
- Check Indian taxation rules below:
| Income Type | Holding Period | Tax in India |
|---|---|---|
| Short-Term Capital Gain (STCG) | Less than 24 months | Taxed at your Indian slab rate |
| Long-Term Capital Gain (LTCG) | 24 months or more | 12.5% flat, no indexation |
| Dividend Income | N/A | Taxed at your slab rate |
| Source: Clear Tax | ||
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.