Citi Sees India IPO Market Soaring to $20 Billion in 2026

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AuthorKavya Nair|Published at:
Citi Sees India IPO Market Soaring to $20 Billion in 2026
Overview

Citigroup forecasts India's IPO market will reach $15-20 billion in 2026, potentially setting new records. The outlook is buoyed by strong domestic participation, earnings growth, and macro stability. Proposed changes to external commercial borrowing (ECB) guidelines could also significantly boost offshore debt issuance, particularly for sectors like real estate.

Citi Predicts Record IPO Year for India in 2026

Citigroup anticipates a robust Indian IPO market in 2026, projecting total fundraising between $15 billion and $20 billion. This forecast suggests a repeat of, or even a new record, in equity capital market activity for the nation. The projection comes amidst expectations of strong domestic investor participation, mirroring trends seen in 2025.

IPO Market Surge Expected

Rob Chan, head of equity capital markets syndicate for Asia at Citi, stated that the firm expects substantial deal flow. While specific names remain undisclosed, the expectation is for several large transactions to come to market. This confidence is underpinned by India's underlying economic strength and financial market stability, according to Citi executives.

Debt Capital Markets Outlook

The outlook for debt fundraising is also bright, particularly concerning external commercial borrowings (ECBs). Nitesh Dugar, head of debt capital markets for South and Southeast Asia, highlighted that proposed regulatory changes could be a significant catalyst. If implemented, these changes could broaden access to the bond market for a wider array of issuers, including sectors like real estate that have faced historical constraints.

Rupee and FPI Inflows

Foreign portfolio investor (FPI) inflows into Indian equities are expected to turn decisively positive, contingent on attractive valuations. Kaustubh Kulkarni, co-head of investment banking (APAC), noted that reduced foreign exposure and potentially more favorable secondary market valuations could attract capital. The Indian rupee, seen as somewhat oversold, could also rebound sharply if tariff-related uncertainties abate, further supporting investor sentiment.

Underlying Strengths

Executives pointed to a combination of strong equity market performance and relatively stable currencies as key drivers for healthy equity capital raising. This macroeconomic stability, coupled with robust earnings growth, provides a solid foundation for sustained activity in India's capital markets.

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