Citi Forecasts Record-Breaking Activity in India's Initial Public Offering Market

India Expected to See Rise in Initial Public Offerings in Second Half of the Year

India's initial public offerings (IPOs) are expected to rebound in the second half of the year, according to Citigroup Inc. The country's IPO market has faced a rocky start, with foreign investors withdrawing capital and the rupee sliding.

This year, Indian companies have raised approximately $3.5 billion through IPOs, a significant decline from the $22.4 billion raised in 2025, when India was the world's third-largest IPO market. Citigroup's India head of equity capital markets, Arvind Vashistha, notes that historically, 60%–70% of IPO issuance has been concentrated in the final quarter, suggesting a similar trajectory for the second half of the year.

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Vashistha also estimates that full-year volumes are likely to be at least in line with last year and potentially 5% or 10% higher. Mumbai-based Vashistha highlights interesting themes for foreign investors in India, including the country's positioning in artificial intelligence and its impact on employment and consumption.

Meanwhile, Citigroup's India head of investment banking, Rahul Saraf, believes that more deals should emerge as multinationals reassess their portfolios and divest non-core assets. Recent examples include Novartis AG selling a majority stake in its Indian unit, 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 becoming a natural buyer, according to Saraf. Indian companies retain both the capacity and willingness to pursue large, strategic acquisitions, particularly where there is a clear industrial rationale such as geographic expansion, capability building, or cost optimization.

However, challenges persist, including the impact of the war in the Middle East on prices, disruption to business, and the global economy. India has taken 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.

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The uncertainty has widened the gap between buyer and seller expectations on deals, with Saraf noting that deals are not disappearing, but becoming more selective, with greater scrutiny on valuation, diligence, and downside protection. Despite the short-term softening of markets, Saraf expects stabilization and recovery in the broader market.