JPMorgan is right on top of India’s 3-year high share sales; US bank holds this much market share

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August 4, 2020 3:30 PM

Share sales by listed Indian firms are at a three-year high, and JPMorgan Chase & Co. is right on top of it. The U.S. bank has worked on the two largest follow-on offerings in India this year and currently holds a 19% market share.

The 30-share index Sensex was up by 398.85 points or 1.08% to close at 37,418.99.It’s the first time JPMorgan has topped the ranks since at least 2009, having almost tripled its share from last year.

Share sales by listed Indian firms are at a three-year high, and JPMorgan Chase & Co. is right on top of it. The U.S. bank has worked on the two largest follow-on offerings in India this year and currently holds a 19% market share, according to Bloomberg League Tables. It’s the first time JPMorgan has topped the ranks since at least 2009, having almost tripled its share from last year. Citigroup Inc. usually dominates this market, ranking number one in seven of the past 11 years, the tables show.

Companies have raised $15.5 billion through additional share sales in India this year, the most since 2017, when firms sold $18.7 billion worth of stock, data compiled by Bloomberg show. Bankers are counting on the market to remain busy, as companies — especially banks — seek funds to shore up balance sheets hit by the coronavirus epidemic, while shareholders look to sell stakes to meet regulatory requirements. Additional offerings by financial companies account for about half of the year’s issuance, the data show.

The latest deal JPMorgan worked on was a $1.4 billion block trade in Bandhan Bank Ltd. on Monday, adding to a string of share sales by lenders recently. The largest follow-on offering of the year so far has been a $3.3 billion sale of GlaxoSmithKline’s stake in Unilever’s Indian unit, which JPMorgan advised on together with HSBC and Morgan Stanley.

While India typically may not have the steady stream of deals seen in markets like China, it does have chunky offerings for banks to get involved in. The Hindustan Unilever Ltd. deal was Asia’s largest additional share sale of the year, while the region’s biggest rights offering also was from an Indian company, Reliance Industries Ltd. The conglomerate controlled by Asia’s richest man raised $7 billion through a rights issue in May.

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