According to Citigroup Inc., initial public offerings in India should recover in the second half of the year after a challenging start that saw foreign investors withdraw capital and the rupee slide. As reported by NDTV, about $3.5 billion has been raised in IPOs this year, compared with $22.4 billion in all of 2025, when India was the world's third-biggest IPO market. Arvind Vashistha, Citigroup's India head of equity capital markets, noted that over the past two years, 60%-70% of issuance has been concentrated in the final quarter, and current conditions suggest a similar trajectory. He expects full-year volumes to be at least in line with last year and potentially 5% or 10% higher.
According to Citigroup's analysis, a lot rests on a potential Indian record-breaking first-time share sale by Jio Platforms Ltd., which is proving increasingly challenging, as well as National Stock Exchange of India Ltd.'s long-delayed listing. For foreign investors, interesting themes include the country's positioning in artificial intelligence and its impact on employment and consumption, which will shape capital flows but won't derail issuance activity, as noted by Vashistha.
As reported by NDTV, Rahul Saraf, Citigroup's India head of investment banking, expects more deals to emerge as multinationals reassess portfolios and divest non-core assets. Recent examples include Novartis AG selling a majority stake in its Indian unit in February, FMC Corp. offloading its local business, and Paris airport operator ADP selling a stake in GMR Airports Ltd. On the outbound front, Saraf noted that India is increasingly a natural buyer, with Indian companies retaining both capacity and willingness to pursue large, strategic acquisitions, particularly where there's clear industrial rationale such as geographic expansion, capability building, or cost optimization.
According to NDTV, India faces significant challenges including the war in the Middle East and its impact on prices, disruption to business and the global economy. The country is the world's third-largest importer of oil and heavily reliant on energy supplies through the Strait of Hormuz, which has been blocked for more than two months. An increase in energy bills has led to a surge in foreign outflows and put pressure on the rupee, which has hit a record low. The country's Sensex stock index is also down 11% this year, with the uncertainty widening the gap between buyer and seller expectations on deals.
