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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 (Photo: Reuters)
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 (Photo: Reuters)

JPMorgan dominates market for Indian share sales

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

Share sales by listed Indian firms are at a three-year high, and JPMorgan Chase & Co. is right on top of it.

The US 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.

UPCOMING LISTINGS:

■ Hangzhou Tigermed Consulting Co.

  • Hong Kong stock exchange
  • Size $1.38b
  • Listing Aug. 7
  • BofA, Haitong, CLSA, CICC

■ KE Holdings Inc.

  • New York Stock Exchange
  • Size about $2b
  • Filed July 24
  • Goldman Sachs, Morgan Stanley, China Renaissance, JP Morgan

Gland Pharma Ltd.

  • India stock exchanges
  • Filed July 10
  • Citi, Haitong, Nomura, Kotak

■ Mindspace REIT

  • India stock exchanges
  • Size up to $598m
  • Books were open July 27-29, listing around Aug. 12
  • Morgan Stanley, BofA, Axis Capital, Citi, JM Financial, Kotak Mahindra, CLSA, Nomura, UBS, Ambit Capital, HDFC Bank, IDFC Bank, ICICI Securities

AREIT

  • Philippines stock exchange
  • Raised $250m
  • Trading Aug. 13
  • BPI Capital, UBS

More ECM transactions we are following:

  • Two companies start subscriptions for their ChiNext IPOs on Tuesday, the first batch of listings under relaxed rules. One of them sets the price at the highest level since the board was launched in 2009.
  • Kakao Games will raise up to 384 billion won in an IPO by selling 16 million new shares at 20,000-24,000 won each.

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