India ECM Increases 119% In 1Q 2018 - Strongest Start Since 2010

By SiliconIndia   |   Wednesday, April 4, 2018
Print Print Email Email

Equity and equity-linked issuance by Indian companies raised a total of US$8.7 billion in the first quarter of 2018, a 119.2% increase in proceeds, as number of ECM issuance grew 69.6%. This is the strongest start for India ECM, in terms of proceeds, since 2010 (US$8.9 billion).

Initial public offerings (IPO) raised a total of US$2.8 billion, up 355.8% in proceeds from the same period last year, after number of IPOs gained momentum and increased 83.8%. This is the highest first quarter period for Indian IPOs since 2008 (US$3.7 billion). 

Bandhan Bank issued the largest IPO from India this year with US$687.1 million (INR44.7 billion) in proceeds. The IPO is also India’s biggest bank IPO on record.

Follow-on offerings reached US$5.9 billion in proceeds, up 75.9% from a year ago, and the highest first quarter period since 2015 (US$7.2 billion) in terms of proceeds. Tata Steel raised US$1.9 billion (INR127.0 billion) through a jumbo rights issue. This is the biggest India ECM deal so far this year. Another billion-dollar offering was Tata Sons’ block share sale of Tata Consultancy Services, raising US$1.4 billion (INR89.8 billion) worth of proceeds.

Axis Bank took the lead for Indian ECM underwriting with US$1.3 billion in related proceeds and captured 15.1% of India’s ECM activity. Citi followed behind at second place with 13.4% market share worth US$1.2 billion in related proceeds.  In third place, State Bank of India captured 11.6% of the market share.

ECM Issuance from India’s Financials sector accounted for majority of the nation’s ECM activity with 46.3% market share and generated proceeds worth US$4.0 billion, a 199.6% increase in proceeds from the first quarter of 2017. High Technology sector followed in second place with 17.2% market share worth US$1.5 billion, a significant increase in proceeds from the first quarter of last year (US$260.8 million). Industrials followed close behind and rounded out the top three sectors, capturing 15.0% of India’s ECM activity.

Underwriting fees for equity and equity-linked offerings from Indian issuers generated estimated fees worth US$233.6 million, a 418.0% increase from the comparative period last year.  Axis Bank takes the lead for India ECM imputed fee rankings with US$39.8 million in fee revenue, and captured 17.0% of the wallet share this year.

Read more news:

Maruti Suzuki's March sales at 1.6 lakh units up 15%

Looking For Loan? Let us Help you !!!
Loan Amount
Annual Income
Preferred banks
Type the characters you see in the picture
90% of developing economies
Ninety per cent of developing economies, including India are falling behind or are at risk of fall..
Banks need to raise own capital
Public Sector Banks (PSBs) may raise capital themselves to meet regulatory and growth ..
Bharti Airtel board approves
Telecom major Bharti Airtel on Thursday said its board of directors has approved fund raising ..
Brookfield to buy RIL E-W Pipeline
Canadian investor Brookfield has acquired the loss-making East-West Pipeline Ltd from Mukesh Amba..