India-Canada Tensions: Listed Indian Firms That Could Feel The Heat From Strain In Ties

Most Indian stocks exposed to Canada whether via operations or through investments were under pressure on Wednesday after diplomatic relations between the two countries were in the spotlight after Canada said it had “credible information” that India had a hand in the assassination of a Sikh separatist leader.

India has categorically refuted the claims.

Cause of India-Canada Tensions

The recent strain in the India-Canada relationship can be traced back to comments made by Canadian Prime Minister Justin Trudeau. Trudeau said that Canadian authorities were investigating allegations linking agents from New Delhi to the murder of Sikh separatist leader, Hardeep Singh Nijjar. This statement has caused significant diplomatic tensions between the two nations, which could impact their trade and economic relations.

Value of Economic Ties Between India And Canada

Indian companies have invested C$6.6 billion (₹40,800 crore) and generated 17,000 jobs in Canada, according to a report by the Confederation of Indian Industry (CII), Canada – India Business Council (CIBC), and the High Commission of India in Canada. The report had noted the advantages of Indian foreign direct investment, job creation, research funding, and corporate social responsibility initiatives.

It surveyed had 30 Indian companies operating in various Canadian provinces, all planning to increase their investments in the next five years.

Indian Firms That May Be Affected By Strained Ties

Given this backdrop, here are the listed Indian firms that may feel the heat from straining India-Canada ties:


The Canadian Pension Plan Investment Board (CPPIB) holds a 6% stake in Delhivery, which listed only last year. As of the June quarter, this stake is valued at ₹1,878 crore. The stock was up 0.53% at ₹429.75.

Kotak Mahindra Bank

The CPPIB had invested C$1.15 billion (₹7,100 crore) in the Uday Kotak-led bank back in 2015. As of the most recent data, the fund holds a 2.68% stake in the bank. Notably, the Canadian Pension Fund also sold a 1.66% stake in the bank in June this year. The remaining stake was valued at ₹9,582 crore. The stock was down 0.93% at ₹1,782.10.


The CPPIB holds a 2.37% stake in food delivery aggregator Zomato. This stake is worth ₹2,078 crore based on its current market valuation. Zomato’s share price was down 1.57% at ₹100.55.


The CPPIB was an anchor investor in Paytm, which had launched India’s second-largest IPO. The fund increased its shareholding last year when Paytm’s shares hit an all-time low. As of the June quarter, the CPPIB’s stake in Paytm is valued at ₹973 crore. Paytm’s share price was down 2.31% at ₹853.05.

Indus Towers

The firm was previously known as Bharti Infratel. The Canadian pension fund holds a 2.18% stake in Indus Towers. This stake is currently valued at ₹1,085 crore. The stock was down 1.13% at ₹183.


The CPPIB was an anchor investor in Nykaa’s IPO and even bought additional shares in November 2022. The fund’s stake in Nykaa is valued at ₹625 crore. Nykaa’s share price was down 2.41% at ₹145.50.

Aditya Birla Group

The Aditya Birla Group has a large presence in Canada. Its major companies are in the pulp and fibre business, the metals business, the ITES business and the carbon business. In 2013, it bought Ontario-based Terrace Pulp and also owns AV Group NB as part of its pulp and fibre business. Most of the pulp produced by AV Group is supplied to Aditya Birla Group's viscose plants in India, Indonesia and Thailand.

Most Aditya Birla Group’s listed firms were trading lower on Wednesday. Grasim Indutries’s share price was down 0.76% at ₹1,942.30 while Century Textiles and Industries‘ share price was down 0.63% at ₹1,039.85.

Tata Consultancy Services

TCS has been serving the Canadian marketplace for more than 25 years, with offices in Toronto, Montreal, Calgary and Vancouver. Tata Technologies (Canada), a unit of Tata Technologies Inc, provides services ranging from engineering automation to IT services. TCS’ share price was up 0.34% at ₹3,619.


Besides having an investment worth ₹100 crore from CPPIB, Wipro Canada offers end-to-end best practice solutions that help Canadian businesses and communities. It has also partnered with some of the largest Canadian enterprises. Wipro’s share price was down 0.29% at ₹434.95.


Besides having an investment worth ₹180 crore from CPPIB, Canada is an important country for Infosys and the IT major has centres in three cities Toronto, Calgary and Vancouver with over 2,000 employees in that country. Infosys’ share price was down 0.55% at ₹1,483.45.

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Posted In: Aditya Birla GroupDelhiveryinfosysKotak Mahindra BankNykaaPaytmTCSWiproZomato