Many Indian companies have found their way into the US stock exchanges, tapping into the world's largest and most liquid capital market. But how exactly do Indian companies list in the US, and what benefits do they gain from doing so? One way that Indian companies list in the US is through American Depositary Receipts (ADRs). These are financial instruments that represent shares in foreign companies but are traded on US exchanges, such as the New York Stock Exchange (NYSE) or NASDAQ.
What is ADR in stock market?
An ADR is essentially a certificate issued by a US bank representing shares in a foreign company. In simpler terms, instead of buying shares of a company directly in India, an investor can buy an ADR, which gives them exposure to the same company. The bank holding the ADR keeps the shares of the foreign company in its custody, and the ADR represents a certain number of these shares.
You can think of an ADR as a kind of “proxy” for the company’s shares. Just like a proxy vote in a meeting, the ADR allows the holder to participate in the company's performance and potential gains without having to go through the complexities of foreign exchange and international trading.
An easier way to understand ADR is that it is like buying a popular foreign snack from a local store. The snack is made in another country, but the store brings it to you so you can enjoy it without traveling. Similarly, an ADR allows you to invest in a foreign company’s shares through a local US bank, which holds the actual shares abroad.
Why do Indian companies opt for ADRs?
- Access to US Capital Markets: Indian companies tap into the largest investor pool in the US, attracting capital for growth.
- Enhanced Visibility and Brand Recognition: Listing ADRs boosts global visibility and credibility by meeting US financial standards.
- Better Liquidity: US markets provide high liquidity, making it easier for investors to buy and sell shares.
- Currency Diversification: Raising capital in US dollars helps Indian companies hedge against currency risks.
- Investor Diversification: ADRs simplify the process for US investors to invest in Indian companies, bypassing market and regulatory complexities.
To understand more about how ADRs work, Click Here
Why should investors be interested in ADRs?
ADRs allow US investors to diversify by adding Indian companies to their portfolios, benefiting from India’s fast-growing economy. Investors can easily trade ADRs on US exchanges like NYSE or NASDAQ, just like local stocks, and receive dividends in US dollars. With the same regulatory standards as US stocks, ADRs offer transparency and ease of access, giving investors exposure to high-growth sectors in India without the complexities of foreign markets.
The top Indian ADRs by Market Cap
Here’s a look at the top five Indian ADRs based on market capitalization, according to Google Finance data. These companies have made a significant impact in the US market, and their ADRs represent key sectors of India’s economy, including banking, technology, and pharmaceuticals.
HDFC Bank ADR - $160.39 Billion
HDFC Bank ADR, with its market cap of $160.39 billion as of 26th March 2025, is the largest Indian ADR by market capitalization. It is the second-largest private-sector bank in India and has consistently delivered strong financial performance.
For the year ended March 31, 2024, HDFC Bank earned net revenues of ₹1.57 lakh crore, a 33.7% increase from the previous year. Net interest income crossed ₹1 lakh crore, rising by 25% year-on-year to ₹ 1.08 lakh crore. Profit after tax for the year was ₹ 60,810 crore, up by 37.9% compared to the previous year.
HDFC Bank’s ADRs are highly liquid and widely traded in the US, providing a gateway for investors to access India’s growing banking sector. The bank’s focus on retail banking and digital services has contributed significantly to its growth.
ICICI Bank ADR - $111.04 Billion
ICICI Bank, with an ADR market capitalization of $111.04 billion, is one of India’s leading private-sector banks. The lender has been expanding its footprint globally, especially in key markets like the US and the UK.
ICICI Bank's Q3FY25 net profit (PAT) surged by 14.8% year-on-year, reaching ₹11,792 crore. Net interest income (NII) for the quarter rose by 9.1%, reaching ₹20,371 crore, compared to the same period last year.
ICICI Bank's investment in digital platforms and technology-driven financial products has enhanced its competitive edge, making it an attractive option for US investors looking to gain exposure to India’s financial services sector.
Infosys ADR - $77.73 Billion
Infosys is one of India’s largest and most successful IT services companies. With a market cap of $77.73 billion as of March 26, Infy ADR is among the top 5 as the company has seen steady growth, driven by a robust global client base and its focus on digital transformation services.
Infosys posted a net profit of ₹6,806 crore for the October-December 2024 quarter, reflecting an 11.4% YoY increase. Its revenue for the quarter jumped 7.6% YoY to ₹41,764 crore. The company’s ADRs are widely traded in the US, offering investors a chance to tap into India’s booming IT services market.
Wipro ADR - $32.88 Billion
Wipro, a major player in India’s IT sector, has a market cap of $32.88 billion for its ADRs. Wipro reported a 24.5% YoY rise in its consolidated net profit for Q3FY25, reaching ₹3,353.8 crore. Meanwhile, its consolidated revenue from operations stood at ₹22,319 crore, a 1% YoY rise.
Wipro’s investments in emerging technologies such as cloud computing, artificial intelligence, and cybersecurity have positioned it well for future growth. Wipro’s ADRs provide US investors with a way to participate in India’s growing IT outsourcing industry.
Dr. Reddy’s ADR - $11.50 Billion
Dr. Reddy’s Laboratories is one of India’s leading pharmaceutical companies that specializes in generics, active pharmaceutical ingredients (APIs), and proprietary drugs. It operates globally, offering affordable medicines across various therapeutic areas.
Dr. Reddy's Laboratories reported a 2% YoY increase in consolidated profit after tax (PAT) to ₹1,413.3 crore for Q3FY25. Revenue for the quarter stood at ₹8,358.6 crore, marking a 16% YoY rise. The pharma major’s strong R&D pipeline and focus on expanding its product portfolio in key global markets like the US, Europe, and Japan make it a popular ADR.
Conclusion
ADRs serve as a bridge, enabling Indian companies to tap into global capital while offering US investors a straightforward way to access India’s high-growth sectors. They provide investors with diversified exposure to one of the world’s fastest-growing economies. The rise of leading Indian ADRs over the years is a proof of growing importance of international market access.
Disclaimer:
The content is meant for education and general information purposes only. Investments in the securities market are subject to market risks; read all the related documents carefully before investing. Past performance is not indicative of future returns. The securities are quoted as an example and not as a recommendation. This in no way is to be construed as financial advice or a recommendation to invest in any specific stock or financial instrument. The Company strongly encourages its users/viewers to conduct their own research and consult with a registered financial advisor before making any investment decisions. All disputes in relation to the content would not have access to an exchange investor redressal forum or arbitration mechanism. INDmoney Global (IFSC) Private Limited, Unit No. GA-02, Seat No. 1-4, Ground Floor, Pragya Accelerator Block-15 T, Road 11, Zone-1, Processing Area, GIFT SEZ, Gift City, Gandhinagar, Gujarat, India, 382355 IFSCA Broker-Dealer Registration No. IFSC/BD/2023-24/0016, IFSCA DP Reg No: IFSC/DP/2023-24/010.