No imminent signs of structural slowdown in IPO activity: Subhakanta Bal

Strong IPO pipeline with billion-dollar issues may push 2026 fundraising past $20 billion, driven by robust domestic liquidity and rising MNC interest in India listings

With several companies lining up billion-dollar-plus initial public offerings (IPOs), the pipeline this year could be as busy as in the previous two calendar years, says Subhakanta Bal, managing director (MD) at Rothschild & Co India. In an interview

with Samie Modak and Sundar Sethuraman in Mumbai, Bal says unless there is a major macroeconomic shock or adverse global development, the market is likely to see meaningful IPO activity through the year. Edited excerpts: 

Calendar year 2024 (CY24) and CY25 were record years for IPO fundraise. Do you think this year will be equally big for the equity capital market (ECM)? 

The current pipeline is strong, and we think the IPO activity could even surpass $20 billion mark this year, which was the total IPO fundraise in 2025. Multiple companies with planned billion-dollar-plus IPOs are looking to tap public markets this year.

 

There has been a sudden drop in IPO activity. When do you see it reviving? 

Even in 2025, we had a slow first half and then a very strong second half. The current drop you are referring to could be on account of some softness in earnings and some jitters due to concerns of artificial intelligence (AI) impacting the technology sector. But several companies are looking to go public this year, and some of these are large IPOs. So, unless we have material negative news flow or some macro uncertainty, or adverse developments, we expect to witness meaningful IPO activity this year.

 

Has India’s relative market underperformance affected IPO momentum? 

I don’t think so. CY25 was a very active year for IPOs in India. Typically, equity markets are cyclical, and public markets in India have been range-bound in the last few quarters, largely on the back of muted earnings growth rather than any structural issues or lack of investor appetite. The expectation is that we would witness good earnings growth going forward, in part driven by recent trade deals, other policy reforms, and increased consumption propelled by direct and indirect tax cuts. Domestic liquidity continues to be robust, and foreign investors continue to participate in IPOs, even as they have sold in the secondary markets. The pipeline of companies wanting to go public remains strong. In summary, we don’t see imminent signs of structural slowdown in IPO activity.

 

How do you ensure quality in a crowded IPO pipeline? 

In a busy market, investors naturally become more selective. There has been a strong increase in number of IPOs over time, which implies that the entire ecosystem (comprising bankers, investors, etc.) is handling meaningfully higher volumes than they did three-four years back. This makes it imperative that companies prepare a compelling equity story and positioning, and (their) management teams are fully geared to cogently respond to potential investor concerns. This is where a global advisor like us, with a comprehensive advisory solution straddling sector expertise and product experience, comes in.

 

Which sectors and geographies are showing the most IPO interest? 

Interest is broad-based across multiple sectors like health care, consumer, technology, financial services, industrials, and manufacturing. Geographically, we see strong interest from all the key regions — the EU, UK, South Korea, and the US.

 

Why are multinational companies (MNCs) suddenly exploring Indian capital markets? 

From the outside, India looks very attractive — healthy valuations, expanded investor pools, including strong domestic flows, and enhanced liquidity. The country is a strategic market for MNCs that are considering an India listing for the local business, and so often the listing is another means to aiding their broad India strategy. Listing helps get an acquisition currency, act as another source of capital to fund local acquisitions, and enhance social licence. Our role as an advisor is to work alongside MNCs, helping them assess whether, when, and how an Indian listing makes sense.

 

What trends are you seeing among MNCs considering Indian listings? 

There has been a clear increase in interest from MNCs to evaluate India listing. The number of MNCs looking to list in India is clearly in the double digits. One of the drivers is valuation arbitrage versus home markets (for the global parent). Also, listing provides liquidity for the parent while they can retain control and continue their strategic commitment to India as a long-term growth market. That said, Indian capital markets are new for several global companies, which makes education and early preparation crucial. Many clients want to explore early-on while the actual listing might be some time away. They are willing to be patient and understand the possibilities and the allied considerations at play.

 

Are there regulatory hurdles discouraging MNC listings in India? 

It is not about regulatory hurdles but rather some of the local regulations are different from other countries. Indian rules around governance, related-party transactions, disclosures, and delisting require careful understanding. Once companies appreciate these nuances, most find that the benefits of listing outweigh these considerations.

 

Why has the need for IPO advisory increased in India?

  IPO volumes in India have roughly tripled over the last four years, which is a very significant uptick over a relatively short span of time. I don’t think the number of bankers has kept pace with this. Further the significantly higher volumes also imply that institutional investors are busier today than in the past. All of this creates bandwidth considerations across the ecosystem. Our role in ensuring comprehensive and early preparation can help streamline the process, enhancing efficiency at the business end of the process.

 

What is your role in IPOs? 

We are focused on IPO advisory. We work alongside issuers to assist them in the journey of going public across all the key aspects — equity story, company positioning, benchmarking, likely investor concerns and responses, IPO timing, book runner composition and selection, issue size and pricing, and investor mix/allocation. The other key area where we add value is efficient project management to ensure that companies (especially management teams that have not had a first-hand experience of IPOs in the past) have someone handhold them through the entire labyrinth of going public. In certain instances, we also advise clients to defer IPO or grow further (including through acquisitions) before exploring listing if we believe this can lead to a better outcome.