Reviving the Bull: How India's Divestment Plan Could Ignite Future Fundraising

Emkay Global predicts that the government's divestment plan will boost fundraising activities in FY26 despite current market corrections. Key opportunities lie within public sector IPOs and QIPs. Current market challenges include reduced IPO activities and foreign investor withdrawals, while SIP inflows and RBI measures help maintain market stability.

The government's ambitious divestment plan is set to reinvigorate fundraising in FY26, according to insights from Emkay Global Financial Services. The firm noted that recent market corrections have stalled deal activity, but this initiative could provide a much-needed boost.

Yatin Singh, CEO of investment banking at Emkay Global, highlighted a webinar that the public sector is emerging as a significant client for investment banks. The Department of Investment and Public Asset Management has set a divestment target of Rs 47,000 crore, presenting a major opportunity for investment banks in India.

Despite a sharp decline in IPO activities and foreign investor withdrawals, resilient SIP inflows and RBI's strategic measures are bolstering market stability. Singh emphasized that enhanced bank credit and supportive policies are expected to fuel liquidity in the coming years.

(With inputs from agencies.)