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Initial public offerings (IPOs) in India could raise up to $20 billion over the next year, reinforcing the country’s position as one of the world’s most dynamic listings markets, according to Citigroup Inc.

So far this year, Indian IPOs have raised $12 billion, with another $5 billion expected to be added this month alone. The surge is being fuelled by Tata Capital Ltd. and LG Electronics Inc.’s Indian arm, both of which are set to begin trading next week, Bloomberg reported.

India- World's Most Active ECM Market 

“India is likely to be the world’s most active ECM market along with Hong Kong over the next year,” said Harish Raman, Citi’s Head of Equity Capital Markets Execution and Solutions for Asia Pacific.

Raman, who is based in Hong Kong, noted that the current pipeline is the largest on record, spanning both domestic and international firms across technology, healthcare, and consumer sectors.

Domestic Investors Drive Market Strength

The ongoing IPO boom is underpinned by a deep pool of domestic capital, including participation from millions of retail investors. This local strength has helped balance out foreign withdrawals of more than $15 billion this year, as investors shifted towards Chinese equities, the report added.

Meanwhile, concerns over the 50 per cent US tariff on Indian exports and weaker corporate earnings have also contributed to foreign outflows.

Strong Pipeline Of Upcoming Listings

Several high-profile Indian companies are preparing to go public in the coming months. These include digital payments firm Pine Labs Ltd, e-commerce platform Meesho, and ICICI Prudential Asset Management Co.

Next year could also see India’s largest-ever IPO, with Reliance Jio Infocomm Ltd. expected to hit the market.

Valuation Pressures Amid Market Rally

A sustained nine-year rally in India’s Sensex index has bolstered market sentiment, drawing both issuers and investors. However, Raman cautioned that the influx of offerings may require greater pricing discipline.

“The bigger challenge for India is just the amount of supply that is coming,” he said. “There will be some calibration around valuation expectations.”