IPOs in India could raise up to $20 billion over next year: Citigroup

Core Insights - Initial public offerings (IPOs) in India are projected to raise up to $20 billion over the next 12 months, reinforcing India's status as a leading market for listings [1] - The current year has already seen $12 billion raised through IPOs, with an additional $5 billion expected this month from companies like Tata Capital Ltd. and LG Electronics Inc.'s Indian arm [1] Group 1: Market Activity - India is anticipated to be one of the most active equity capital markets (ECM) globally, alongside Hong Kong, in the coming year, with a record pipeline of listings from both domestic and international companies [2] - The sectors driving this activity include technology, healthcare, and consumer industries [2] Group 2: Investment Dynamics - The surge in IPOs is supported by a robust domestic capital base, particularly from millions of retail investors, which has counterbalanced the withdrawal of over $15 billion by foreign investors this year [3] - Foreign selling has been influenced by factors such as the 50% US tariff on Indian exports and declining corporate profits [3] Group 3: Upcoming Listings - Notable upcoming IPOs include Pine Labs Ltd., Meesho, and ICICI Prudential Asset Management Co., with the potential for India's largest IPO by Reliance Jio Infocomm Ltd. next year [4] - The ongoing nine-year rally in the Sensex index has contributed to positive market sentiment, although there are concerns regarding the supply of new listings and valuation expectations [4]