K Balasubramanian, CEO of Citi India Subcontinent and Banking Head, expects a strong IPO pipeline in the remaining months of 2025, with potential capital raising of $10–15 billion by mid-December.
In an interview with Moneycontrol, Balasubramanian said, “Between now and December 15, we may see another $10–15 billion of capital being raised from the market, assuming the market continues to be constructive.”
He noted that the pipeline of companies waiting to go public is “quite robust” and added that some of these listings could spill over into early 2026.
2025 Surpasses Market Expectations
Reflecting on the year’s performance, Balasubramanian said 2025 had exceeded expectations, following a strong 2024 IPO season. “It’s a great match of demand and supply,” he remarked, pointing out that investor appetite has remained high.
He added that Citi led two major listings — Tata Capital and LG Electronics — earlier in October 2025. These successful listings have strengthened Citi’s position in the Indian capital markets, he said.
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Foreign Investors Making a Comeback
Balasubramanian highlighted a renewed inflow of foreign institutional investors (FIIs) since early October. “We are seeing some bit of activity with financial and foreign institutional investors coming back to the market,” he said.
He noted that the Nifty index recently touched 25,700 points — a level not seen in the past year — reflecting improved investor sentiment and market stability.
Valuations and Growth Outlook
Addressing concerns about high IPO valuations, Balasubramanian said there is fundamental justification for current multiples, given India’s long-term growth story.
“Consumption is going to be a continuing theme to play out in India. Our penetration levels are much lower than other parts of Asia, so even with a small multiplier, this growth is here to stay,” he explained.
Citi’s Strong Role in BFSI Deals
Beyond IPOs, Citi has been actively involved in several large financial sector deals in 2025. These include the Yes Bank–Sumitomo Mitsui Banking Corporation (SMBC) partnership, State Bank of India’s ₹25,000 crore qualified institutional placement (QIP) — the largest ever by an Indian bank — and the IHC–Sammaan Capital preferential issue.
“Financial services sector continues to be quite active,” Balasubramanian said, adding that Citi remains a key player in major BFSI transactions.
Focus on Deepening Institutional Banking
When asked if Citi plans to pursue acquisitions in India, Balasubramanian clarified that the bank’s current focus is on deepening existing business lines rather than expanding through acquisitions.
“We are in very good shape in terms of market share in each vertical. At this point, we’re focusing on vertical expansion — going deeper into existing business lines to capture more market share,” he said.
He further outlined Citi’s strategic goal to position itself as a full-suite institutional bank, stating, “India doesn’t have a pure play institutional bank. With that perspective, we are better off in our vertical strategy.”
No Plans to Convert into a Wholly Owned Subsidiary
Balasubramanian also clarified that Citi does not intend to operate as a wholly owned subsidiary (WOS) in India. “With the business model we are in today, there is no significant advantage to becoming a WOS,” he stated.
This comes as several global banks, including Emirates NBD and SMBC, have received or sought RBI approval to operate as WOS entities in India. However, Citi intends to continue operating as a branch of its US parent, focusing on institutional and investment banking services.
Conclusion
With a strong IPO pipeline worth up to $15 billion, active deal-making in the BFSI sector, and foreign investor confidence returning, 2025 is shaping up as another stellar year for Citi India.
Balasubramanian remains confident that the IPO momentum could extend into 2026, underscoring Citi’s growing leadership in India’s capital market landscape.
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