Mumbai/Hong Kong: Indian equity and equity-linked offerings may jump by as much as a third this year as companies and the government tap a growing pool of domestic capital and the economy recovers, according to Citigroup Inc.
Indian firms may raise $25- 30 billion (Rs1.16-1.39 trillion) in share sales in 2010, up from $22 billion last year, said Ravi Kapoor, head of capital markets and origination for South Asia at Citigroup.
If liquidity keeps coming into the market the way it did last year and equity markets continue to perform, we could possibly cross $30 billion in primary issuance, Kapoor said in a 17 February interview in Mumbai.
Two-thirds of the equity capital Indian companies raised last year was from domestic offerings, according to data compiled by Bloomberg. The pool of local capital has grown as insurance companies and mutual funds pour more money into the equity market, said Kapoor, whose bank was the top arranger of domestic stock sales in India in 2009.
The Sensitive Index rallied 81% in 2009, making it the third-best performing benchmark in Asia, as the economy weathered the global recession and stock purchases by foreign investors rose. The gauge has fallen 6.5% this year. firstname.lastname@example.org