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India, one of the world’s most prolific IPO markets, was preparing to issue $50 billion worth of shares as tensions in the Middle East fade. However, US President Donald Trump’s decision to end the ceasefire with Iran on Wednesday poses a major risk to several large IPOs planned for India.
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big story
India, one of the world’s busiest public markets, was bracing for a massive stock market offering worth $50 billion in 2026 after a slow start. Plans for several large IPOs were announced last month after tensions in the Middle East subsided.
But US President Donald Trump’s decision on Wednesday to end the ceasefire with Iran has put those listing plans in jeopardy. Indian markets fell more than 2% in response to President Trump’s announcement, underscoring the growing importance of geopolitical risks in global financial markets.
India’s relative lack of artificial intelligence stocks, combined with macroeconomic stress from the Middle East conflict, has already underperformed Indian stocks this year.
“IPO activity could accelerate in the second half of this year if secondary market conditions improve,” Hari Shamsunder, vice president and senior institutional portfolio manager for Indian equities at Templeton Global Investments, told CNBC.
IPO issuance will be driven by “the market’s ability to absorb new offerings,” he added.
Meesho Limited Chief Executive Officer Vidit Arturi (centre right) and other attendees attend the listing ceremony at the National Stock Exchange (NSE) in Mumbai, India, on Wednesday, December 10, 2025. Indian e-commerce platform Meesho soared on its listing in Mumbai on Wednesday, showing increased investor appetite for tech startups following a series of blockbuster listings. Photographer: Dheeraj Singh/Bloomberg via Getty Images
Bloomberg | Bloomberg | Getty Images
IPO plans are under threat
So far in 2026, IPO activity in India has lacked the same enthusiasm seen in other major markets such as the US and Hong Kong.
U.S. companies have already raised $128 billion in 72 initial public offerings through June, while Hong Kong companies have raised $27 billion in 84 listings, according to an EY report released Tuesday.
In contrast, Indian IPOs have raised just $4 billion across 102 issues, many of which are not listed on major stock exchanges, but rather on bourses geared toward small and medium-sized enterprises. In the first six months, only 31 companies listed on major exchanges, raising just 244 billion rupees ($2.6 billion), according to Prime Database, a Mumbai-based IPO information firm.
This was set to change.
Abhay Raijewala, chief investment officer for India at global investment firm Lighthouse Canton, told CNBC’s Inside India on Monday that an IPO pipeline worth $50 billion is set to hit the Indian market, leading to a “flood” of problems.
However, the ongoing conflict between the United States and Iran could upend these plans. Experts told CNBC that investors need a good deal of predictability when pricing IPOs and certainty that a listing will result in a reasonable return. However, persistent geopolitical uncertainty and instability make the process even more unpredictable.
“The Strait of Hormuz has not only choked oil, but it has choked India’s IPO market,” Raijawala said.
About $22 billion worth of IPO issuances are still seeking regulatory approval, which could take two to three months, but $29 billion worth of issuances have already been approved, according to Prime Database.
Some of the big companies that have already received regulatory approval for IPOs include quick commerce company Zepto and solar power maker Avaada Electro. Both issuances are estimated to raise approximately $1 billion, according to Prime Database.
India’s largest wireless carrier Jio Platforms and its largest stock exchange, the National Stock Exchange, filed IPO documents last month, saying they are estimated to raise 377 billion rupees ($3.5 billion) and 300 billion rupees ($3.1 billion), respectively. walmartOwned digital payments company PhonePe is also awaiting approval to begin the listing process.
India’s IPO lineup this year also includes several hospital chains, including Manipal Health Enterprises, backed by Singapore’s sovereign wealth fund Temasek, which plans to raise more than $1 billion.
Over the past two years, India’s IPO market has seen frenetic activity, luring even multinational companies to list their Indian operations. Carlsberg India filed its IPO application last week, and Coca-Cola’s India unit is also considering listing in the country.
The Indian economy continues to transform, with much of it being formalized due to the spread of digital technology and changes in the tax system.
Experts say government policies are leading to the rise of new manufacturing industries, while funding from private equity firms is fueling the rise of consumer technology companies and scaled-up businesses such as hospitals and hospitality chains.
All these companies are now looking to go public to open the door to the next stage of growth.
“There have been several times in the past where strong IPO pipelines have evaporated and mega IPOs have been shelved if market conditions are not supportive,” Pranav Haldea, managing director at Prime Database, told CNBC.
He added: “IPOs require a stable, if not dynamic, market to balance the risks of new papers.”
need to know
Indian fashion retailer Torrent’s June quarter sales growth is disappointing
One of India’s largest fashion retailers, torrenton Monday reported standalone sales of 56.66 billion rupees ($595 million) for the quarter ended June, up 19% from a year earlier. The company’s stock price plummeted more than 10% on Tuesday after sales growth was lower than expected. Trent primarily operates fast fashion stores in India under the brands ‘Westside’ and ‘Zudio’.
Mehta’s troubles deepen in India as child abuse ads on Instagram draw government ire
The Indian warned that it would take action against two of Mehta’s three biggest platforms, WhatsApp and Instagram, within a week, underscoring the growing regulatory risks the US social media giant faces in its key markets. On Saturday, the government issued a “stern notice to Mehta” over the existence of paid child abuse material. A Meta spokesperson told CNBC in an email that Meta has a “zero tolerance policy” against child abuse-related content.
very soon
July 10-11: Prime Minister Narendra Modi visits New Zealand.
July 13: Indian consumer price inflation data for June.
