1. India’s 2017 equity fund raise highest in 10 years, says report

India’s 2017 equity fund raise highest in 10 years, says report

Indian companies raised a total of $28.5 billion in 2017 through equity and equity-linked issuances from the equity capital markets (ECM), a whopping 208% increase compared to the previous year, according to a Thomson Reuters report.

By: | Mumbai | Updated: January 3, 2018 3:02 AM
equity funds, equity capital markets, highest equity proceeds, equity-linked issuances, equity fund raise highest The number of ECM issuances grew 84.7% in the year.

Indian companies raised a total of $28.5 billion in 2017 through equity and equity-linked issuances from the equity capital markets (ECM), a whopping 208% increase compared to the previous year, according to a Thomson Reuters report. The number of ECM issuances grew 84.7% in the year. This is the highest equity proceeds raised in any year since 2007 when $31.2 billion was raised. During the fourth quarter of 2017, total ECM proceeds amounted to $11.1 billion, a 59.6% quarterly increase in proceeds from the third quarter of 2017, and saw the highest quarterly level rise since the second quarter of 2007. Follow-on offerings reached a record high of $17.4 billion, up 251.7% from a year ago, capturing 61.1% of the India ECM activity, the report said. In June, SBI had priced its qualified institutional placement and raised $2.3 billion, the biggest India ECM issuance to date. IPOs raised a total of $11.1 billion, up 175.8%, while the number of IPOs increased 83.7%. 2017 was the biggest year-ever for Indian IPOs, in terms of proceeds, surpassing the earlier high of $8.6 billion in 2007. In the fourth quarter of 2017, three IPOs of over $1-billion each were launched.

The list was led by state-owned reinsurer General Insurance Corporation of India’s $1.7 billion IPO in October – the biggest IPO in seven years since Coal India priced its $3.5 billion IPO in 2010 – followed by New India Assurance’s $1.5 billion and HDFC Standard Life Insurance’s $1.3 billion in November. In September, SBI Life Insurance had raised $1.3 billion through its IPO. This clearly marked 2017 as a year of big insurance IPOs.

India also saw the first IPOs by infrastructure investment trusts (InvIT) in 2017, with IRB InvIT Fund raising $783.5 million and India Grid Trust garnering $348.8 million. The report noted that Kotak Mahindra Bank took the lead for Indian ECM underwriting with $3.6 billion in related proceeds and captured 12.6% of India’s ECM activity. Citi stood second with a 9.0% market share and $2.6 billion in related proceeds. Axis Bank came in third with 7.4% of the pie.

Get latest news and updates on Auto Expo 2018, check breaking news on Budget 2018, like us on Facebook and follow us on Twitter.

  1. No Comments.

Go to Top