London-headquartered Barclays Plc is set to make a significant comeback to India's equity capital markets (ECM) business, nearly a decade after its departure. The move, confirmed by Pramod Kumar, CEO of Barclays India, signals the bank's intent to secure underwriting mandates in one of the globe's most active markets for share sales.
Strategic Investment in India Operations
Barclays' planned return to the Indian ECM sector is a key component of its broader investment strategy in the country. Over the past five years, the bank has injected more than £500 million ($664 million) into its India operations, strengthening its investment, corporate, and private banking divisions.
Pramod Kumar, who also serves as the bank's Asia-Pacific investment banking vice-chairman, highlighted India as a long-term structural opportunity, underpinned by robust retail and institutional investor participation. “There’s a long-term structural opportunity,” Kumar stated, emphasizing the bank's strong existing investment banking offerings in financing, M&A, and corporate banking, with ECM being the missing piece they are now seriously considering.
Capitalizing on India's IPO Boom
The decision to re-enter the equity capital markets positions Barclays to compete for mandates amidst India's thriving initial public offering (IPO) landscape. The country has experienced two consecutive years of unprecedented deal activity, maintaining a strong IPO pipeline despite recent market fluctuations.
This boom has also attracted other international financial institutions, with banks like Emirates NBD PJSC and DBS Group Holdings Ltd exploring expanded presences in India. Barclays' commitment includes hiring new bankers, deploying additional capital, and investing in advanced technology across its Indian units.
Building from the Ground Up
Kumar acknowledged that establishing the ECM business “from ground zero” would be a gradual process. However, he expressed confidence in India's sustained fundraising environment, driven by both retail and institutional investors, despite any short-term market weaknesses. Barclays is already an active participant in the rupee market, including the syndication of rupee-denominated bonds for its clients, further solidifying its presence in the Indian financial sector.