Barclays eyes India IPO market comeback after nearly a decade; plans investment banking expansion

UK-based Barclays Plc is preparing to re-enter India’s equity capital markets business after nearly a decade as it seeks underwriting mandates in one of the world’s busiest markets for share sales, Bloomberg reported.

The London-headquartered bank is hiring bankers, deploying capital and investing in technology across its India operations. Pramod Kumar, chief executive officer of Barclays India, said the country presented a long-term opportunity supported by retail and institutional investors.

“There’s a long-term structural opportunity,” Kumar said in a television interview at the Bloomberg New Economy Forum in New Delhi. “We’ve got a very strong investment banking offering across financing, M&A, corporate banking. I think this is the only piece, so we are thinking seriously about it.”

A return to equity capital markets would allow Barclays to compete for mandates as India’s initial public offering pipeline remains strong after two consecutive years of unprecedented deal activity. The boom has also prompted banks including Emirates NBD PJSC and DBS Group Holdings Ltd to consider expanding their presence in India.

Kumar, who is also the bank’s Asia-Pacific investment banking vice-chairman, said the return would take time as it involved “getting something off the ground from ground zero”. Despite the current weakness in capital markets, he expects India to continue seeing a strong fundraising environment backed by retail and institutional investors.

Barclays is investing in its investment bank, the largest part of its India business, as well as its corporate and private banks, Kumar said. The lender has injected more than £500 million ($664 million) in capital over the past five years, hired bankers over the past year and is investing in technology.

The bank is also among the most active participants in the rupee market, including in the syndication of rupee-denominated bonds for clients, Kumar said.

Barclays’ planned return to India’s equity capital markets business forms part of its wider investment in the country, where it is strengthening its banking teams, capital base and technology operations.