Listing of MNCs, subsidiaries to remain a key theme for IPOs: Ranvir Davda

ECM activity has rebounded sharply over the last couple of months, with significant pickup in IPOs and block deals, says Davda

Domestic equity capital markets (ECM) have rebounded strongly after an early slowdown in 2025, with initial public offerings (IPOs) and block deals gaining momentum. In an interview with Samie Modak, Ranvir Davda, co-head of investment banking at HSBC India, discusses the robust IPO pipeline, emerging market trends, and factors driving equity market activity this year. Edited excerpts:

 

What factors led to the slowdown in ECM activity at the start of the year?

 

The period between January and March witnessed significant foreign outflows of about $13 billion across large and midcap stocks, which led to a sharp correction in the markets. This secondary market volatility, combined with uncertainties from tariff tantrums, heightened geopolitical tensions, and India’s relative premium valuations contributed to the moderation in deal activity during this period.

 

How has ECM activity recovered since the initial slowdown?

 

ECM activity has rebounded sharply over the last couple of months, with significant pickup in IPOs and block deals. The trends continue to be very strong. Cumulatively, in May and June, we’ve seen aggregate deal volume of over $ 15 billion, with blocks dominating at over $12 billion. These deals have received a strong response from both local and international long-only funds. Large-scale blocks have got upsized and priced well at the tighter end, indicating a strong underlying demand.

 

What is the current state of the IPO pipeline?

  Filings and issuer conversations continue to be extremely active, and we expect the pipeline to grow steadily through this year. There are several high-quality mid-sized and large $1 billion plus IPOs in the works that continue to garner the right investor attention. In fact, over 75 IPOs have received Sebi approval and are under various stages of execution. They are likely to hit markets over the next 6–12 months. 

 

What are the key themes for IPOs in the second half of 2025?

 

While the pipeline is quite diverse, investor interest is high in sectors like manufacturing, industrial, clean energy and new economy tech. Tech continues to have a sizeable pipe across B2B, fintech, consumer tech and health tech which is commanding a lot of investor attention. Listing of scaled Indian subsidiaries of multinational corporations (MNCs) as well as of Indian conglomerates continues to remain a key theme for IPOs in India. We believe these will grow and continue to remain relevant over the next 12-24 months.

 

Why are MNCs increasingly pursuing IPOs in India?

 

Increasingly, India is now a strategically critical market for several global multinational companies. As these companies continue to grow, they are uniquely placed, offering best-in-class technology, high brand recall, strong governance, coupled with attractive local consumer growth and export potential. Typically, MNCs offer robust returns and lower leverage, thus making them attractive for private and public capital market investors. An India listing of an MNC subsidiary sends a strong message of long-term commitment to the country. It also creates an opportunity for Indian institutional and retail shareholders to be part of their growth story.

 

Why are block deals dominating the ECM market?

 

The improvement in market sentiment and return of foreign investor flows have led to the recovery of stock prices from the levels seen earlier this year. Block deal volumes have been driven by IPOs coming off six-month lock-up, multinationals and private equity funds trimming stakes and promoters cashing in on investor optimism. Local mutual funds have been actively leading demand, along with foreign investors who are leveraging large deals to re-adjust their underweight India stance upwards.

 

How does HSBC position itself in India’s competitive ECM market?

 

HSBC leverages its status as India’s largest international full-service bank, offering wholesale, retail, private banking, and investment banking services. India is one of the top priority markets for HSBC globally and we continue to invest and build strength in our investment banking business. HSBC’s Eurasian distribution network connects investors from Europe, Middle East, and Asia (Singapore and Hong Kong), who are keen to participate in the India growth story. Our strong local relationships and cross-border reach make us a go-to partner for corporates, private equity, and MNC clients for their strategic transactions in India.