Unlike India, the US IPO market does not have a dedicated retail allocation mechanism comparable to the reservation available in eligible Indian public issues

Investors can claim credit for the TCS against their income tax liability while filing returns or seek a refund

Anthropic plans its IPO debut on Nasdaq under ticker ANT.

Indians can invest via LRS subject to broker support.

Overseas investments attract TCS, capital gains, and tax.

Market Mastery

Webinar by Vishal Malkan

Find the weak links

in your portfolio by Vishal Malkan

Anthropic, the artificial intelligence (AI) company behind chatbot Claude, is preparing for its stock market debut, offering investors an opportunity to participate in the growing generative AI industry. The company is scheduled to price its initial public offering (IPO) on November 18, 2026, and begin trading on the Nasdaq Global Select Market on November 19 under the ticker symbol ANT.

For Indian investors, the key questions are whether they can apply for the IPO, how they can purchase shares and what taxes they must pay on their overseas investments.

Can Indian investors apply for the Anthropic IPO?

Indian residents can invest in eligible overseas securities under the Reserve Bank of India's (RBI) Liberalised Remittance Scheme (LRS), which allows individuals to remit up to US$250,000 in a financial year for permitted overseas transactions.

However, eligibility under LRS does not guarantee access to every international IPO. Investors need an international brokerage platform or intermediary that facilitates participation in the particular offering and accepts applications from Indian residents.

The investment must comply with the Foreign Exchange Management Act (FEMA), Overseas Investment Rules and Regulations and applicable RBI directions.

Experts say investors can explore direct subscriptions through international brokers and eligible institutional or private banking channels, subject to regulatory requirements.

What investors must know

Unlike India, the US IPO market does not have a dedicated retail allocation mechanism comparable to the reservation available in eligible Indian public issues. Underwriters generally decide how shares are distributed, with institutional investors often receiving a substantial allocation. Consequently, Indian retail investors may find it difficult to secure shares at the IPO price. Availability will also depend on whether their brokerage platform supports participation in the offering.

Thus, for investors unable to secure an IPO allotment, buying shares after listing could be a more accessible option.

They can follow these steps:

Open an international trading account with an Indian platform or overseas broker offering US stocks.

Complete KYC and other required documentation.

Transfer funds through an authorised banking channel under LRS.

Search for Anthropic using its Nasdaq ticker symbol, ANT, once trading begins.

Place a buy order at the prevailing market price.

Investors should remember that the post-listing price may be significantly different from the IPO price, depending on demand and market sentiment.

How are Anthropic shares taxed in India?

Indian investors must account for taxes at the time of remittance, when selling shares and when receiving dividends.

Tax collected at source (TCS): Under the LRS framework, 20 percent TCS applies to overseas remittances exceeding Rs 10 lakh in a financial year for purposes other than specified education and medical expenses. This amount is not an additional final tax. Investors can claim credit for the TCS against their income tax liability while filing returns or seek a refund, subject to their overall tax position.

Capital gains tax: If foreign shares are sold within 24 months of purchase, the resulting short-term capital gains are generally taxed at the investor's applicable income tax slab rate. If the shares are held for more than 24 months, long-term capital gains are generally taxed at 12.5 percent, without indexation, under the applicable provisions.

Dividend taxation: Dividends paid by US companies to Indian resident investors are generally subject to 25 percent withholding tax in the US under the India-US Double Taxation Avoidance Agreement (DTAA). However, investors can claim foreign tax credit in India, subject to applicable conditions and limits, to avoid paying tax twice on the same income.

Investors must also disclose their overseas investments and relevant foreign income in their income tax returns and comply with applicable FEMA, LRS and reporting requirements.

What should investors check before buying Anthropic shares?

Beyond the IPO excitement, experts suggest investors should examine Anthropic's valuation, revenue growth, profitability prospects and competitive position. The substantial costs of developing AI models, computing infrastructure and research could also affect its ability to generate sustainable profits.

Indian investors should factor in currency conversion charges, brokerage fees, remittance costs and taxation before calculating potential returns. The decision should depend on the company's long-term business prospects, IPO valuation and the investor's risk appetite rather than the excitement surrounding its Nasdaq debut.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Navneet Dubey With nearly 13 years in business journalism spanning print and digital, he demystifies personal finance including taxation, mutual funds, insurance, lending and borrowing, banking, etc. His insights empower individuals to build wealth and achieve their financial goals.

Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!