Stories
India's IPO Market to Boom: Manufacturing, Healthcare Drive Growth Through FY27
- •India's primary capital markets, including IPOs and M&A, are projected to remain robust through FY27, according to Citi's Rahul Saraf.
- •The second half of the financial year is expected to see stronger activity, potentially exceeding last year's capital market levels.
- •Key sectors driving this growth include manufacturing (both high-end and baseline operations), energy, infrastructure, enterprise tech, healthcare, lifesciences, and consumption.
- •Larger M&A deals over $100 million are gaining momentum, driven by strategic objectives like technology access and new geographies, with private equity dry powder fueling investments.
- •Outbound M&A and cross-border partnerships are also increasing, alongside significant corporate reorganizations like the $25 billion Vedanta demerger.
Key Questions Answered
India's IPO market activity is seeing strong participation across multiple sectors, with manufacturing and healthcare emerging as key themes. Other areas attracting significant market interest include energy, infrastructure, enterprise tech, lifesciences, consumption, industrial gas businesses, and jewellery makers.
Larger M&A transactions exceeding $100 million are showing increased activity and momentum as buyers and sellers focus on strategic opportunities. These larger deals are primarily driven by clear strategic goals such as gaining access to new technology, products, and geographies, alongside a 20-25% rise in private equity deal sizes.
Corporate reorganizations are actively fueling dealmaking and capital market activity in India. A notable example is the $25 billion Vedanta demerger, which is designed to foster a more selective and accountable approach for each distinct business unit.
