DBS Group Enters India’s Equity Capital Market With A Potential $1 Billion IPO

Singapore’s largest lender, DBS Group Holdings Limited, has made its entry into India’s fast-moving equity capital market (ECM) space. The bank has picked up its first initial public offering (IPO) mandate in the country, marking a clear step-up in its investment banking push.

The mandate comes from Manipal Health Enterprises, which has filed draft papers for a public issue. The offering is expected to raise close to $1 billion, placing it among the biggest IPOs in the pipeline this year. Notably, Temasek Holdings is a common shareholder in both DBS and the hospital chain.

Why Is DBS Tapping India’s Equity Market?

A spokesperson for DBS confirmed that the bank has expanded its presence in India’s equity capital markets under its merchant banking licence. With this, it now runs a full-fledged investment banking setup in the country.

The timing is not accidental. India has emerged as one of the busiest markets globally for share sales. Money raised through IPOs went past $22 billion last year, placing India among the top global markets. Dealmakers believe the pace could hold up in 2026 too, helped by a healthy list of companies preparing to go public and steady demand from investors.

Global firms like Goldman Sachs and JPMorgan Chase have also highlighted India as a key growth market for capital raising.

Building A Local Investment Banking Base

DBS plans to offer both equity and debt advisory services to companies, private equity sponsors and large institutional clients. The bank will also tap into its wider Asian network to connect Indian issuers with overseas investors.

To lead this effort, the bank is moving senior banker Sanjog Kusumwal to India. He will oversee the build-out of the local ECM business and also support fixed-income deals.

This move adds to DBS’s broader India strategy. The bank has been steadily increasing its presence over the years, including its takeover of Lakshmi Vilas Bank in 2020. Note that it was a rare instance of a foreign lender stepping in to rescue a domestic bank.

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Riding On India’s IPO Growth

With more large issues expected to hit the market, new entrants like DBS are looking to capture a share of this growing pie. Note that the IPO activity in India continues to deepen, not just in volumes but also in capital generation. Investment banks earned record underwriting fees last year, with average fees inching higher as deal sizes expanded.

Sources:

The Economic Times

The Edge Singapore

Moneycontrol