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India's listed AI market could gain USD 100 billion from IPOs over next 5 years: Goldman Sachs

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India's listed AI market could gain USD 100 billion from IPOs over next 5 years: Goldman Sachs

Business News Tech AI India's listed AI market could gain USD 100 billion from IPOs over next 5 years: Goldman Sachs

India's listed AI market could gain USD 100 billion from IPOs over next 5 years: Goldman Sachs

India's artificial intelligence sector is poised to contribute between USD 50 billion and USD 100 billion from forthcoming IPOs. Goldman Sachs has pinpointed 84 private AI firms collectively valued at around USD 55 billion. The study forecasts that 25 to 50 percent of these enterprises could make their public debut within the next two to five years.

India's listed artificial intelligence (AI) market could gain an additional USD 50 billion to USD 100 billion in market capitalisation over the next two to five years as privately held AI companies move towards initial public offerings (IPOs), according to a report by Goldman Sachs. The report identified 84 privately held Indian companies with significant exposure to the AI value chain, estimating their combined current value at around USD 55 billion. Of these, 71 companies are at growth, late, infrastructure or buyout investment stages and have a combined estimated value of USD 54 billion. Goldman Sachs estimates that 25-50 per cent of these 71 companies could go public over the next two to five years. Assuming an average IPO valuation around four times their current estimated value, these listings could add USD 50 billion to USD 100 billion to India's listed AI market.

"We estimate approximately $50bn to $100bn in incremental market cap could be added to India's listed AI complex from prospective IPOs over the next 2-5 years, assuming 25-50% of the ~70 mid-to-late stage Private AI Contenders (currently estimated at ~$54bn value) list at a weighted average 4x valuation step-up," the report said.


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