Capital Edge - Capital flows in uncertain times - Is it the pause before Capex storm - Yatin Singh

Описание: Is India's capital market defying global headwinds? In this episode of Capital Edge, we explore the surprising resilience of India's primary markets, the state of the IPO pipeline, and how businesses are strategizing amidst global uncertainty.

Yatin Singh, CEO of Investment Banking at Emkay Global, joins host Prachi to discuss:

Why India's markets remain strong despite geopolitical risks.
The future of IPOs and capital raising.
The burgeoning opportunities in AI, data centers, and critical sectors.
Navigating valuation shifts and discerning investment strategies.

Tune in for expert insights to understand the opportunities and challenges shaping India's financial landscape.

#IndiaMarkets #IPOOutlook #InvestmentStrategy #AIinIndia #EconomicGrowth #CapitalEdge #EmkayGlobal

Highlights -
The war and conflicts may affect the secondary market sentiment in the short run, but the primary markets plan for the long haul. - 01:23
Post Covid, we have witnessed a strong revival in capital formation, even with the Ukraine, Russia war and geopolitical tensions growing constantly. - 01:37
In just the first four months of 2026, we have already seen 40 wheels signaling that the pipeline remains robust and the intent to raise capital is clearly intact. - 02:04
Yet the market sentiment in India appears remarkably resilient, with several large and marquee IPOs expected to hit the markets in the months ahead. - 02:25
Circumspect is one word I would summarize it in because of all these macro factors that you just listed. - 03:11
So, we're not seeing a lot of deal flow. Everything is on hold because everyone is waiting to quantify the new normal and what it means for individual businesses, their cash flows, etc. etc. - 03:21
It's a pause. It's a pause because of factors which are extraneous to the companies in the markets broadly. - 03:44
So capex will happen, but again, capex has needs, policy clarity. - 05:57
So the demand side is as robust as it was in the recent past. - 08:30
I think there are some 140 companies who have SEBI approval and are waiting to launch their IPOs. - 08:37
And its perceived impact has precipitated this a lot more. - 09:15
So, the deal pipeline from the demand side is very strong. - 09:26
So horses for courses. - 12:53
Of course, that period is way behind us and it's only very serious and very credible investment theses which are getting accepted in the market. - 13:16
So, there definitely is a sharp correction in valuation. - 13:33
Which is why SEBI has extended all DRHPs which were valid between the 1st of April '26 to the 30th of September '26 up to the 30th of September. - 14:05
So that's a one-time extension. They've also taken an exception from the regulation and allowed IPO sizes to be reduced to 50% of the fresh component. - 14:12
The froth which existed in the market, I think that was some time back. - 15:29
So I think that's again an area where India should dominate given its traditional strength in IT services. - 19:17
So if we look at the energy layer, the amount of energy that data centers require and will require going forward, as mass adoption of AI happens, cannot be through the old-age coal fuel power plants. - 16:54
I think data center is one segment where India may have a global play. - 18:34
So I think the war, in my opinion, was an amplification of some of the thought processes which pre-existed the war as well. - 25:00
And you know, that's something that the government needs to think about seriously, and I believe they will. - 26:47
So let's discuss SpaceX and OpenAI separately from the others because those two are supposed to list on NASDAQ. - 27:03
The large ones in India will definitely go through at some point of time in the near future whenever the market window opens. - 27:32
So when you say large IPOs, what I'm hearing is the companies which have created value for the masses, where domestic institutions of course are one, but the retail investors have also recently stepped up quite in a big way. - 28:46
So I think the domicile of the investor is immaterial. - 29:52
So I mean, we are hoping we have a strong pipeline. We are hoping that the market becomes a little more supportive for that pipeline to materialize. - 31:04
What clearly stands out is that while global uncertainty and geopolitical risks remain elevated, India's primary markets continue to show strong depth and resilience. - 31:26
The momentum we have seen from the surge in IPO activity last year to the strong start this year reflects not just liquidity, but also growing confidence among businesses and investors. - 31:34
At the same time, as you have highlighted, this is a more discerning environment. - 31:47
Capital is available, but expectations around governance, profitability, and execution are clearly higher. - 31:55
With a strong pipeline of marquee IPOs ahead, the coming months will continue to be crucial in shaping how the cycle evolves and whether this momentum sustains at scale. - 32:04