Barclays plans India equity advisory return after a decade

Barclays Plc is preparing to restart its equity capital market business in India after nearly a decade, capitalizing on a surge in share sales in one of the world’s busiest markets for fundraising.

“That’s one important product missing in our otherwise very strong wholesale banking offering,” Pramod Kumar, chief executive officer of Barclays India, said on the sidelines of the Bloomberg New Economy Forum in New Delhi.

A return would allow the UK bank to compete for underwriting mandates as the pipeline for initial public offerings stays strong after two straight years of unprecedented deals. Investment banks earned a record $417 million in IPO fees in India last year, according to data from LSEG, as a surge in listings and improved pricing power boosted revenues.

“We believe India will offer a long-term opportunity for banks like us to help our clients in meeting their capital needs across debt as well as equity,” Kumar said.

About 170 companies have received approval from the Securities and Exchange Board of India for IPOs, while another 115 are awaiting a decision, according to the regulator’s website.

The boom has drawn greater interest from global investment banks including Emirates NBD PJSC and DBS Group Holdings Ltd. in expanding their presence in India. Competition is also intensifying as domestic firms use their relationships with local companies and investors to win a growing share of mandates.

In an interview with Bloomberg TV on Wednesday, he said India’s economy is growing rapidly, with GDP expanding by more than 7%, while its equity market remains strong supported by both retail and institutional investors.

“The large amount of money flowing from individual investors through systematic investment plans will continue to support fundraising, even as foreign investors sell,” he said.

India also has a large number of startups across sectors including fintech and consumer technology, as well as major infrastructure companies, all of which need to raise capital, he said. A significant amount of capital has gone into these companies, and those investors are also looking to exit through IPOs and subsequently via block trades, he added.
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