Barclays Plc is preparing to restart its equity capital markets business in India after nearly a decade, targeting the country's booming IPO market. Speaking at the Bloomberg New Economy Forum in New Delhi, Pramod Kumar, CEO of Barclays India, highlighted that "There's a long-term structural opportunity" and emphasized that "That's one important product missing in our otherwise very strong wholesale banking offering." The move would allow the UK bank to compete for underwriting mandates as the pipeline for initial public offerings stays strong after two straight years of unprecedented deals. The bank's return has also attracted interest from other international banks including Emirates NBD PJSC and DBS Group Holdings Ltd.
The timing appears particularly favorable as investment banks earned a record $417 million in IPO fees in India last year, according to data from LSEG, as a surge in listings and improved pricing power boosted revenues. About 170 companies have received approval from SEBI for IPOs, while another 115 are awaiting a decision, according to the regulator's website. Kumar noted that "We believe India will offer a long-term opportunity for banks like us to help our clients in meeting their capital needs across debt as well as equity." The boom has been driven by strong fundraising demand, robust retail investment flows, and startup growth across sectors including fintech and consumer technology. Competition is also intensifying as domestic firms use their relationships with local companies and investors to win a growing share of mandates.
According to Kumar, Barclays is investing across its investment bank, which represents the largest part of its India business, as well as its corporate and private banks. The bank has injected more than £500 million ($664 million) of capital over the past five years and added bankers over the past year. Additionally, the lender is investing in technology infrastructure to support its market re-entry. Kumar emphasized that the ECM return will take time as it involves "getting something off the ground from ground zero" but noted that "We've got a very strong investment banking offering across financing, M&A, corporate banking. I think this is the only piece, so we are thinking seriously about it."
Kumar highlighted India's strong economic fundamentals, noting that India's economy is growing rapidly, with GDP expanding by more than 7%. He emphasized that "The large amount of money flowing from individual investors through systematic investment plans will continue to support fundraising, even as foreign investors sell." The bank is also among the most active players in the rupee market, including syndicating rupee bonds for clients. Barclays has operated in India's GIFT City for about five years and plans to continue investing there given the hub's fiscal and tax advantages. Kumar cautioned that rebuilding the ECM business would take time, describing the effort as "getting something off the ground from ground zero" but expressed confidence in India's continued strong fundraising opportunities despite current weakness in capital markets.
