Barclays plans to build from Ground Zero to tap India’s IPO boom
The move would mark Barclays’ return to India’s ECM business after nearly a decade, allowing it to compete for underwriting mandates as the IPO pipeline stays strong after two straight years of unprecedented deals
Barclays Plc is set to re-enter India's equity capital markets (ECM) business, according to the bank's local chief, Pramod Kumar. In a recent interview at the Bloomberg New Economy Forum in New Delhi, Kumar stated that there is a "long-term structural opportunity" in the world's busiest market for share sales. The London-based bank is bolstering its workforce and capital to compete in this competitive landscape.
Kumar emphasized that Barclays is serious about exploring this market, which it had left nearly a decade ago, as it aims to secure underwriting mandates amidst a strong IPO pipeline after two consecutive years of record deals. This return to India's ECM business will take time as it is starting from a "ground zero" position. Despite current market conditions, Kumar remains optimistic about India's fundraising environment, which is supported by both retail and institutional investors.
Barclays has invested over £500 million ($664 million) in the past five years and has added bankers to its India operations in the last year. The lender is also enhancing its technology capabilities and continues to be a major player in the rupee market, syndicating rupee bonds for clients. Barclays has been operating in India's GIFT City for about five years and intends to maintain its investments in this hub due to its fiscal and tax advantages.
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