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.