Citigroup Inc sees IPOs hitting fresh records despite challenges

For foreign investors looking at India, interesting themes include the country's positioning in AI

Initial public offerings (IPO) in India should get back on track in the second half of the year, according to Citigroup Inc, moving on from a rocky start that’s seen foreign investors withdraw capital and the rupee slide. 

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. About $3.5 billion has been raised in IPOs in India this year, compared with $22.4 billion in all of 2025, when it was the world’s third-biggest IPO market. 

“Over the past two years, 60 per cent-70 per cent of issuance has been concentrated in the final quarter, and current conditions suggest a similar trajectory,” said Arvind Vashistha, Citigroup’s India head of equity capital markets. 

“There remains a long runway for deal execution, with full-year volumes likely to be at least in line with last year and potentially 5 per cent or 10 per cent higher,” Mumbai-based Vashistha said. 

For foreign investors looking at India, interesting themes include the country’s positioning in artificial intelligence and its impact on employment and consumption, according to Vashistha. While these factors will shape capital flows, they won’t derail issuance activity, he said. 

India M&A 

Citigroup’s India head of investment banking, Rahul Saraf, said more deals should 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, “India is increasingly a natural buyer,” Saraf said. “Indian companies retain both the capacity and the willingness to pursue large, strategic acquisitions-particularly where there is a clear industrial rationale such as geographic expansion, capability building, or cost optimisation.”  

There are of course challenges, not least stemming from the war in the West Asia and its impact on prices, disruption to business and the global economy. 

India has been taking some extreme measures to cushion itself, including tightening gold imports, banning sugar exports, telling some people to work from home to save fuel, and proposing tax cuts. 

India is the world’s third-largest importer of oil and heavily reliant on energy supplies through the Strait of Hormuz, which has essentially 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.