INDIA ECM INCREASES 119% IN 1Q 2018

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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.

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