Multinational companies continue to explore Indian listings despite a slowdown in the country’s IPO market this year, as deep domestic liquidity and relatively higher valuations continue to make India an attractive capital-raising venue.

The Indian operations of US-based drinks major Coca-Cola and tech solutions provider Cognizant, Danish brewer Carlsberg, and Brookfield’s telco business Altius Telecom Infrastructure Trust, are among the names in the pipeline, as reported by various press reports.

Lawyers and bankers said India’s capital markets remain structurally attractive for multinational issuers even as investors become more selective amid market volatility and geopolitical uncertainty.

The world’s most populous country, which priced a record USD 22.96bn from new listings in 2025, has seen only USD 3.56bn worth of IPOs up to 15 May this year, based on Dealogic.

Foreign fund outflows following elevated valuations in India, combined with a global trade war and military conflicts of all scales, which have pushed up oil prices, have largely undermined investor appetite for taking on new risks.

In addition, India’s equity market remains heavily weighted towards service-oriented technology sectors, with limited exposure to the AI hardware boom that has driven gains in several regional markets, said a Singapore-based investment banker.

The country’s Nifty 50 Index has shed over 9% year to date, while China’s CSI 300 has gained 5%. Korea’s KOSPI Index has soared 77.8%, while Taiwan’s benchmark index has risen 42.2% over the same period.

LG Electronics India, which went public in October 2025, has fallen 4.7% from its IPO price, while Hyundai Motor India, which debuted in October 2024, has been almost flat.

The banker opined that the market may not meaningfully reopen until India’s festive season in September and October, assuming the Middle East conflicts do not escalate further. For high-profile domestic issuers and these foreign companies to kick off a deal, it’s going to demand a much stronger conviction.

India’s structural advantages

“About five to six years ago, multi-national companies (MNCs) were not really thinking of listing their Indian subsidiaries in India,” said Varoon Chandra, senior partner at Indian law firm AZB. “In fact, in a few cases, companies built shareholding structures out of other jurisdictions such as Singapore in order to easily facilitate listings elsewhere.”

That trend has gradually reversed, particularly after COVID-19, as companies increasingly recognised the depth of India’s domestic liquidity and investor base, he added.

Examples of companies that have domiciled elsewhere but then reverse-flipped in order to list in India include payment processor Pine Labs, online broker Groww, and online shopping retailer Meesho.

“Companies want to tap domestic liquidity, increase visibility in India, and create acquisition currency for local M&A,” said Keerthika Melissa Subramanian, a partner at Winston & Strawn. “If you have Indian-listed shares, that gives you flexibility when doing transactions in that market.”

She noted that domestic investors, consisting of mutual funds, insurance firms, and retail investors, accounted for close to 75% of Indian IPO demand in 2025, which she described as a major driver behind the strength of local capital markets. That has provided liquidity amid outflows of foreign funds.

Higher valuations in India compared with several overseas markets, including the US, have also created incentives for multinational issuers and Indian companies to access Indian capital markets, Subramanian said.

GIFT City gains traction

In an attempt to diversify the country’s fundraising channels, the government is promoting the GIFT City, which allows companies to raise foreign-currency capital from global investors through platforms such as India INX and NSE IX.

GIFT City, which sits within India’s international financial services framework and offers several advantages. It is significantly cheaper, roughly 40% to 50% lower cost, and the timeline to market can be much shorter, often in the range of 30 to 45 days, said Subramanian.

GIFT City, established in Gujarat as India’s international financial services hub, is more focused on non-resident Indians (NRIs), overseas citizens of India (OCIs) and a broader international investor pool, she said.

Returning home

Once in a while, there are US listed Indian companies pursuing homecoming listings, said Subramanian.

Online travel platforms Yatra Online completed its India IPO in 2023, while MakeMyTrip is reportedly in the process of pursuing an Indian IPO in 2027.

“These companies are trying to establish a stronger foothold in the Indian market for similar reasons, access to capital, visibility, and strategic flexibility,” she said. “I would expect that trend to accelerate, particularly if some of the higher-profile transactions are successful.”

According to Yash J. Ashar, senior partner at law firm Cyril Amarchand Mangaldas, superior research coverage post listing is an important consideration from companies considering listing in India. He further explained that, for example, being a 73rd-largest market capitalised company with SaaS as a business is unlikely to get strong coverage in the US. But, being the 12th or 13th company by market capitalisation in India, could result in better research coverage.