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India IPO market set for revival in second half: Citigroup
21 May 2026

Citigroup has predicted a revival in India's initial public offering (IPO) market in the second half of 2026.

The forecast comes after a tumultuous start to the year, marked by capital withdrawals from foreign investors and a depreciation of the rupee.

So far this year, India has raised $3.5 billion through IPOs, compared to $22.4 billion throughout 2025 when it was the world's third-largest IPO market.

'Final quarter will see more issuance'
Market catalysts

The potential record-breaking IPO of Jio Platforms and the long-awaited listing of the National Stock Exchange (NSE) are key to reviving India's IPO market.

Citigroup's Arvind Vashistha said, "Over the past two years, 60%-70% of issuance has been concentrated in the final quarter, and current conditions suggest a similar trajectory."

He added that "there remains a long runway for deal execution," with full-year volumes likely matching or exceeding last year's figures.

Foreign investors eye AI's impact on employment, consumption
Investment trends

Vashistha also noted that foreign investors are interested in India's position in artificial intelligence (AI) and its effects on employment and consumption.

He said these factors will influence capital flows but won't hinder issuance activity.

Citigroup's Rahul Saraf expects more deals as multinationals reassess portfolios and divest non-core assets, citing recent examples such as Novartis AG's stake sale in its Indian unit and FMC Corp.'s local business offloading.

Indian companies as natural buyers
Acquisition strategy

Saraf also noted that Indian companies are increasingly becoming natural buyers, with both the capacity and willingness to pursue large, strategic acquisitions.

This is especially true when there is a clear industrial rationale, such as geographic expansion or cost optimization.

A prime example is Sun Pharmaceutical Industries' agreement to acquire New York-listed women's healthcare company Organon & Co., in one of the biggest overseas deals by an Indian company.

India's extreme measures to protect itself
Mitigation measures

In light of the Middle East conflict and its impact on prices, business disruption, and the global economy, India has taken extreme measures to protect itself.

These include tightening gold imports, banning sugar exports, and proposing tax cuts.

Despite these challenges, Saraf said, "Deals are not disappearing, but they are becoming more selective, with greater scrutiny on valuation, diligence, and downside protection."