Listing of MNCs, subsidiaries to remain key theme for IPOs

Domestic equity capital markets (ECM) have rebounded strongly after an early slowdown in 2025, with initial public offerings (IPOs) and block deals gaining momentum. In an interview with Samie Modak, Ranvir Davda, co-head of investment banking at HSBC India, discusses the robust IPO pipeline, emerging market trends, and factors driving equity market activity this year. Edited excerpts:

- 

What factors led to the slowdown in ECM activity at the start of the year?

The period between January and March witnessed significant foreign outflows of about $13 billion across large and midcap stocks, which led to a sharp correction in the markets. This secondary market volatility, combined with uncertainties from tariff tantrums, heightened geopolitical tensions, and India's relative premium valuations contributed to the moderation in deal activity during this period.

How has ECM activity recovered since the initial slowdown?

ECM activity has rebounded sharply over the last couple of months, with significant pickup in IPOs and block deals. The trends continue to be very strong. Cumulatively, in May and June, we've seen aggregate deal volume of over $15 billion, with blocks dominating at over $12 billion. These deals have received a strong response from both local and international long-only funds. Large-scale blocks have got upsized and priced well at the tighter end, indicating a strong underlying demand.