India’s IPO Market Expected To Rebound In H2 Despite Global Volatility, Says Citigroup

Indian IPO Activity Seen Recovering In Second Half Of The Year

India’s initial public offering market is expected to regain momentum in the second half of the year despite ongoing geopolitical uncertainty, foreign capital outflows and pressure on the rupee, according to Citigroup.

After a slower than expected start to the year, investment bankers remain optimistic that India’s equity capital markets will witness a strong recovery driven by large listings, strategic divestments and renewed investor appetite for growth focused companies.

According to market estimates, Indian companies have collectively raised nearly $3.5 billion through IPOs so far this year, significantly lower than the $22.4 billion raised during 2025, when India emerged as the world’s third-largest IPO market.

However, Citigroup believes issuance activity is likely to accelerate sharply in the coming quarters.

Major Listings Could Revive Market Sentiment

One of the biggest catalysts expected to drive market momentum is the potential public listing of Jio Platforms, which could become India’s largest-ever IPO if launched successfully.

Alongside Jio Platforms, investors are also closely tracking the long awaited listing of National Stock Exchange of India, which has faced repeated regulatory and operational delays over the past several years.

Arvind Vashistha said a large portion of India’s equity issuance activity has historically been concentrated in the final quarter of the year.

“Over the past two years, nearly 60%-70% of issuance has occurred in the final quarter, and current market conditions suggest a similar trend,” Vashistha said.

He further added that full-year IPO volumes could potentially match or even exceed last year’s numbers by 5%-10% if market conditions stabilise.

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Foreign Investors Continue Monitoring India’s Growth Story

Despite short-term volatility, India continues to remain an attractive long-term investment destination for global institutional investors.

According to Citigroup, investors are increasingly focused on structural themes such as artificial intelligence, digital transformation, manufacturing expansion and India’s evolving consumption economy.

Vashistha noted that while geopolitical developments and global macroeconomic conditions may influence capital flows, they are unlikely to derail overall issuance activity in India’s capital markets.

The growing global interest in India also comes as multinational corporations reassess portfolios and streamline operations across emerging markets.

Strategic Divestments And M&A Activity Expected To Rise

Rahul Saraf said India is expected to witness increased deal-making activity as multinational companies divest non-core assets and optimise global portfolios.

Recent transactions include Novartis selling a majority stake in its Indian business, FMC Corporation offloading its local operations and airport operator Groupe ADP selling a stake in GMR Airports.

Saraf also highlighted that Indian corporations are increasingly becoming active acquirers globally, particularly in sectors where strategic acquisitions can support geographic expansion, capability enhancement and operational efficiency.

Geopolitical Risks Continue To Weigh On Markets

Despite optimism around IPO activity, global geopolitical tensions continue to pose risks for India’s financial markets and broader economy.

The ongoing conflict in West Asia has disrupted global energy supply chains and increased volatility in crude oil prices. India, which remains heavily dependent on oil imports passing through the Strait of Hormuz, has faced rising energy costs and pressure on the rupee.

The surge in oil prices has also contributed to foreign investor outflows from Indian markets.

To cushion the domestic economy, India has introduced measures including tighter gold imports, restrictions on sugar exports and proposals aimed at reducing fuel consumption and supporting economic stability.

Analysts believe the trajectory of energy prices, currency stability and foreign institutional flows will remain critical factors influencing India’s capital markets over the coming quarters.