Mumbai: Indian companies raised a total of $2.9 billion in the three months ended 31 March by selling equity and equity-linked securities, a 47.1% increase from a year ago, according to a report by Thomson Reuters.

In volume terms, equity capital market activity saw a 29.3% increase, with the number of transactions rising to 53 from 41 a year earlier. The Thomson Reuters report captures equity market transactions such as initial public offers (IPO) and follow-on offers, including qualified institutional placements (QIP).

Firms raised $2.3 billion through follow-on offers, a 48.4% increase from a year ago, capturing 80.5% of the India equity capital market (ECM) activity. Yes Bank’s $750.3 million QIP was the biggest follow-on offering in the quarter.

The increase in overall ECM activity was also a factor of larger sized IPOs hitting the market in the first quarter. IPOs raised a total of $560.4 million, an increase of 41.9% in proceeds from the same period last year. This is the strongest first quarter for Indian IPOs since 2010 ($1.1 billion), according to the report.

Avenue Supermarts Ltd, the owner of D-Mart supermarket chain, was the biggest IPO of the quarter, raising Rs1,870 crore. It’s also the biggest since PNB Housing Ltd’s Rs3,000 crore IPO in November 2016.

Financial sector issuances accounted for most ECM activity with a 43.6% market share, raising funds worth $1.3 billion.

The materials sector followed in second place with a 19.7% market share worth $567.9 million in proceeds. Technology and retail followed close behind and captured 9.1% and 7% of ECM activity, respectively.

According to the report, Citibank led the adviser league table with a 14.5% market share, underwriting issuances worth $418.6 million. State Bank of India followed with a 13.6% market share worth $390.7 million in related proceeds. Bank of America Merrill Lynch was third with a 10% market share.

According to Thomson Reuters estimates, India’s equity and equity-linked capital raising generated an estimated fee worth $29.1 million, a 45% increase from the same period last year. Kotak Mahindra Bank led the advisers for ECM fee rankings with estimated $4.8 million in fee revenue, capturing 16.6% of the wallet share in the quarter.

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