India Inc’s equity and equity-linked fund raising surged to $18.6 billion during the first nine months of 2015, up 121.2% from the corresponding period last year.
This is the highest fund raising for India ECM for the first nine-month period since 2007 ($24.2 billion), showed a Thomson Reuters review of India’s capital markets.
Follow-on offerings, predominantly government divestitures, accounted for most of the proceeds at $17.5 billion, up 124.4% over a year ago, and witnessed the highest period in any given year, driven by six deals above $1 billion.
The government sold 10% stake in Indian Oil Corporation in August 2015 and raised $1.4 billion. The Centre had sold 10% stake in Coal India in January 2015 and raised $3.7 billion — the largest ECM deal in India.
Initial public offerings (IPOs) raised a total of $1.1 billion, a significant increase coming from a sluggish period during the first nine months of 2014 ($223.1 million). Inox Wind priced its initial public offering at the very top of its indicative range and raised $165.1 million in proceeds.
Goldman Sachs topped Indian ECM underwriting with $4.3 billion in related proceeds and captured 22.9% of India’s ECM activity. Citi followed at second place with 8.4% market share worth $1.6 billion in related proceeds. In third place, Bank of America Merrill Lynch captured 8.2% market share.
According to estimates from Thomson Reuters/Freeman Consulting, India’s equity and equity-linked capital raisings generated imputed fees worth $128.2 million, a 65.5% increase from the comparative period last year. Kotak Mahindra Bank led the India ECM imputed fee rankings with $12.8 million in fee revenue and captured 10.0% of the wallet share this year.