India's IPO fundraising could hit $20B in 2026: Citi
What's the story
Citi has predicted a strong equity IPO issuance in India for 2026, estimating total fund-raising between $15 billion and $20 billion. The forecast is based on the country's robust economic performance and potential regulatory changes that could boost external commercial borrowings (ECBs). Rob Chan, Citi's head of equity capital markets syndicate for Asia, said they expect a "very strong" Indian IPO market in 2026.
Market expectations
Anticipated large transactions and market stability
Chan also hinted at the possibility of several large transactions hitting the market, although it's too early to name them. The optimism for equity fundraising is backed by earnings growth and macroeconomic stability. Kaustubh Kulkarni, Citi's co-head of investment banking for Asia-Pacific, said this combination gives them confidence that equity capital raising across these markets will remain healthy.
Debt market
Regulatory changes could boost offshore issuance
On the debt side, Citi sees regulatory changes as a potential catalyst for higher offshore issuance. Nitesh Dugar, Citi's head of debt capital markets for South and Southeast Asia, said changes to the ECB guidelines could open the bond market to a much broader set of issuers. This includes segments such as real estate that have historically been constrained.