India’s IPO Market: Citi Predicts Recovery, Jio Slows Plans, and Zepto Pushes Ahead

India’s IPO market is showing early signs of a reset after two years of record-breaking fundraising activity. 

The changing sentiment is now visible across the ecosystem. According to reports, Citigroup bankers are projecting a rebound in IPO activity despite the current slowdown. Reliance Industries-backed Jio Platforms is reportedly delaying its long-awaited public listing plans amid weaker market conditions, while quick-commerce startup Zepto is moving ahead aggressively with a proposed INR 11,000 crore IPO.

Citigroup Bankers Predict an IPO Rebound in India

Despite softer market conditions in recent months, global investment bankers remain bullish on India’s long-term IPO pipeline.

According to fresh reports, Citigroup bankers have reportedly maintained a positive outlook on India’s equity capital markets, arguing that the underlying structural drivers supporting IPO activity remain intact. India continues to be one of the fastest-growing major economies globally, with expanding retail participation, deeper domestic institutional capital, and a steadily maturing startup ecosystem.

The optimism comes even as IPO fundraising activity has slowed considerably in 2026. According to Prime Database figures cited in recent reports, Indian companies have raised roughly INR 19,854 crore through IPOs so far this year, significantly lower than the INR 27,686 crore raised during the same period last year. 

Global interest rates remain elevated, geopolitical tensions continue to affect foreign capital flows, and investors have become increasingly cautious toward richly valued offerings. Reports indicate that more than half of the IPOs listed in 2025 are currently trading below their issue prices, creating pressure on issuers to moderate valuations.

However, bankers believe the current slowdown is cyclical rather than structural. India still has one of the world’s largest active IPO pipelines. A Reuters report said that around 143 companies currently have approvals pending to collectively raise nearly IMR 1.745 trillion through public listings.

Reliance Slows Jio IPO Plans Amid Market Volatility

One of the clearest signs of the market slowdown is emerging around Jio Platforms, widely expected to become one of the largest IPOs in Indian history.

According to reports, Reliance Industries is slowing preparations for the Jio Platforms IPO as market volatility affects investor appetite for large, high-valuation technology offerings. 

The listing was previously expected to move forward during the first half of 2026. However, softer equity markets and growing caution among institutional investors have reportedly pushed the timeline further out.

Jio Platforms has long been viewed as one of India’s most valuable digital businesses. Earlier reports had estimated the company’s valuation between USD 130-170 billion, with a possible IPO size of nearly INR 40,000 crore.

The company’s strategic importance extends beyond telecom. Jio Platforms has become central to Reliance’s digital ecosystem, spanning telecom, enterprise services, streaming, fintech, cloud infrastructure, and e-commerce integrations. Global investors, including Meta, Google, Silver Lake, KKR, and Mubadala, had collectively invested over IMR 1.5 lakh crore into the business during 2020.

Reuters also reported that Reliance is reconsidering the structure of the IPO itself. Instead of leaning heavily on an offer-for-sale route, the company is reportedly evaluating a larger fresh issue component.

Jio is not the only company reassessing listing plans. Other anticipated offerings, including PhonePe and the National Stock Exchange, have also reportedly moderated timelines amid uncertain market conditions. 

Zepto Moves Ahead With ₹11,000 Crore IPO Plans

The Bengaluru-based quick-commerce startup is preparing for a proposed INR 11,000 crore IPO expected in July 2026, positioning itself as one of the first major quick-commerce companies in India to test public-market appetite directly. 

The company had confidentially filed its IPO papers in late 2025 and recently secured regulatory approval from SEBI. Reports suggest Zepto aims to complete the listing before July 31. 

The IPO arrives at a critical time for India’s rapidly evolving quick-commerce market, where players including Blinkit, Swiggy Instamart, and Flipkart Minutes are competing aggressively for urban consumers seeking ultra-fast deliveries.

According to a Bernstein report, the company is prioritising dense urban expansion over a broad national scale. Zepto currently operates roughly 1,255 dark stores across 61 cities, averaging nearly 21 stores per city, significantly denser than several competitors. 

That model is increasingly important as public-market investors begin focusing more closely on profitability and operational efficiency rather than growth at all costs.

Zepto’s IPO could become a key test case for India’s broader internet startup ecosystem. If the offering succeeds, it could reopen public-market appetite for venture-backed consumer technology companies. 

Market Outlook

Bajaj Broking said that benchmark indices closed on a positive note on 22nd May, supported by buying interest in private banking stocks amid an early recovery in the Indian rupee. 

“However, volatility remained elevated throughout the session as markets faced intermittent profit booking at higher levels in the second half of the session due to persistent geopolitical uncertainty, rising global bond yields, and elevated crude oil prices.”

“On the sectoral front, markets witnessed a mixed trend. Major positive contributions came from Nifty Private Bank, Financial Services, Metal, and PSU Bank stocks, which supported the broader recovery. On the other hand, weakness was observed in Healthcare, Media, and Pharma counters, which capped overall gains. The broader market remained largely stock-specific in nature,” said Bajaj Broking in its market closing commentary.