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Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.<\/span><\/p>\n India is set for a blockbuster month of initial public offerings after a slow start to the year, as companies take advantage of a stock market rebound from the initial turbulence of US President Donald Trump\u2019s tariff threats.<\/p>\n Two of the year\u2019s biggest IPOs are hitting markets this week, with the $1.7bn listing of Tata Capital on Monday and the $1.3bn debut of LG Electronics\u2019 India business on Tuesday. In total, analysts forecast about $5bn of IPOs this month, with another $5bn before the year-end.<\/p>\n The \u201cIndia IPO pipeline is the most active it has been\u201d, said Harish Raman, co-head of Asia equity capital markets at Citigroup.<\/p>\n Equities have recovered from an unexpectedly slow start to the year after Trump\u2019s \u201cliberation day\u201d tariffs in April and a brief military conflict with Pakistan in May raised concerns about the country\u2019s economic growth.<\/p>\n Although 50 per cent tariffs on India remain in place \u2014 among the highest in the world \u2014 the market has largely shrugged off the threat, with the Nifty 50 stock index up 14 per cent from an April low.<\/p>\n Tata Capital opened up 1.2 per cent on Monday morning before trading flat.<\/p>\n IPOs are on track to overtake last year\u2019s record of $21bn. Much of the activity has been concentrated in October as steady earnings and recent government vows to overhaul the goods and services tax have \u201cboosted overall confidence in the primary market\u201d, said Pranav Haridasan, chief executive of Axis Securities.<\/p>\n Other expected listings include the $1bn-plus debut of ICICI Prudential Asset Management and that of Pine Labs, a digital payments company backed by PayPal and Temasek that hopes to raise nearly $700mn.<\/p>\n WeWork India, which the US parent sold to Indian property group Embassy last year, raised more than $350mn this month.<\/p>\n George Chan, EY\u2019s global head of IPOs, said the rebound of activity in the second half was supported by strong valuation multiples and domestic investor demand.<\/p>\n \u201cThe rise in average deal size reflects growing investor optimism in sectors such as fintech, manufacturing and renewables,\u201d he said in a report last week.<\/p>\n The Indian professional\u2019s must-read on business and policy in the world\u2019s fastest-growing big economy. Sign up for the newsletter here<\/p>\n Domestic investors have put a net $63.2bn into the market this year, more than covering $25.3bn in net outflows of foreign holdings, according to data from Groww, one of India\u2019s largest online trading platforms.<\/p>\n Mutual funds have become a popular vehicle for retail investors, with households ploughing about $3bn a month into funds through systematic investment plans, according to Yatin Singh, chief executive of investment banking at Emkay Global Financial Services.<\/p>\n The steady inflows in turn are \u201cproviding strong support to fundraising activity\u201d, said Kailash Soni, head of India equity capital markets at Goldman Sachs.<\/p>\n Recommended<\/p>\n But the domestic funds\u2019 dominance has also shut out foreign investors from the IPO rush.<\/p>\n \u201cBecause the participation of domestic mutual funds is so heavy the allocations become very limited,\u201d said Rita Tahilramani, investment director of Asian equities at Aberdeen, adding that allotments were \u201cso minuscule that even if I make good money on that front it\u2019s meaningless\u201d.<\/p>\n She also raised concerns about \u201cvery expensive\u201d valuations that mean \u201cthere\u2019s nothing left on the table for an investor in the IPO\u201d.<\/p>\n Nonetheless, domestic funds are expected to continue supporting the market, especially since the government restricts individual foreign investment by Indians to $250,000 a year.<\/p>\n \u201cIndian investors don\u2019t have the option of shopping around Asia for the best bargain,\u201d said Singh, \u201cso structurally, whatever monies come in need to get redeployed within India.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":" Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. India is set for a blockbuster month of initial public offerings after a slow start to the year, as companies take advantage of a stock market rebound from the initial turbulence of US President Donald<\/p>\n","protected":false},"author":1,"featured_media":27704,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49],"tags":[3354,1309,426,3588,1987,3642,620],"class_list":{"0":"post-27703","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-5bn","9":"tag-blockbuster","10":"tag-india","11":"tag-ipo","12":"tag-listings","13":"tag-month","14":"tag-set"},"_links":{"self":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/27703","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=27703"}],"version-history":[{"count":0,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/27703\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/media\/27704"}],"wp:attachment":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=27703"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=27703"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=27703"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}India Business Briefing<\/h3>\n