India Equity andequity-linked issuance raised US$15.8 billion as the end of 2018 approaches, a44.3% decline in proceeds from the annual period in 2017.
Initial public offerings (IPO) raised a total of US$4.6 billion, a 56.8% decline in proceeds after a strong period last year. 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$11.1 billion in proceeds, down 36.6% compared to a year ago. Tata Steel raised US$1.9 billion (INR127.0 billion) through a jumbo rights issue earlier this year, making it the biggest India ECM deal so far this year.
Citi takes the lead for Indian ECM underwriting with US$1.9 billion in related proceeds, capturing 12.1% of India’s ECM activity. Axis Bank followed behind at second place with 10.6% market share worth US$1.7 billion in related proceeds. In third place, Kotak Mahindra Bank captures 8.2% of the market share.
ECM Issuance from India’s Financials sector accounted for majority of the nation’s ECM activity with 48.0% market share, generating proceeds worth US$7.6 billion, a 51.4% decline in proceeds from 2017. High Technology sector followed in second place with 12.2% market share worth US$1.9 billion, a significant increase in proceeds from last year (US$667.2 million). Industrials rounded out the top three sectors, representing 11.6% of India’s ECM activity.
Underwriting fees for equity and equity-linked offerings from Indian issuers generated estimated fees worth US$321 million, up 21.3% from last year. ICICI Bank takes the lead for India ECM imputed fee rankings with US$44.3 million in fee revenue, or 13.8% of the wallet share this year.
INDIA BOND ISSUANCE DECLINES 35% in 2018; LOWEST IN ALMOST A DECADE
Primary bond offerings from Indian issuers totaled US$43.8 billion so far this year, a 35.1% decline in proceeds, after witnessing record annual period in 2017 (US$67.4 billion). This is the lowest annual period since 2009, in terms of proceeds.
Tata Capital Financial Services raised US$2.8 billion non-convertible
debentures, making it the biggest bond offering from an Indian issuer so far
this year. Another top issuance was from ABJA Investment, a wholly owned
subsidiary of India’s Tata Steel Ltd, raising a total of US$1.3 billion US
dollar dual-tranche bond offering. Indian companies tapping the
offshore US dollar-denominated bond markets slowed down reached US$6.3 billion,
down 51.9% from over a year ago.
Axis Bank topped the ranking for India-issued bonds underwriting so far this year, with related proceeds of US$9.9 billion from 144 eligible bond offerings and accounted for 22.6% of the market share.
Underwriting fees from primary bond offerings by Indian issuers totaled US$122.3 million, down 44.1% from 2017. Axis Bank currently leads the fee rankings for India primary bond issuance with US$23.6 million in estimated fee revenue, down 38.4% from a year ago, capturing for 19.3% of the wallet share in 2018.
FINANCIALS CAPTURED 85% MARKET SHARE
Indian issuers from the Financials sector captured 85.2% of the market share that amounted to US$37.3 billion, a 17.8% decline in proceeds compared to last year (US$45.4 billion).
Issuance from the Government & Agencies reached US$2.0 billion, down 29.4% in proceeds from 2017, and accounted for 4.5% of the market share. Energy & Power sector followed close behind and rounded out the top three sectors with 4.1% market share.
INDIAN RUPEE BONDS DOWN 26% IN 2018 – LOWEST SINCE 2014
Indian Rupee-denominated bond proceeds amounted to INR2.7 trillion so far in 2018, down 26.3% in proceeds after witnessing a record period last year (INR3.7 trillion), making it the lowest period since 2014.
The Financials sector accounted for 81.6% of the Indian Rupee bonds market with INR2.2 trillion, down 13.7% in proceeds from a year ago (INR2.6 trillion). Energy & Power followed behind with INR138.4 billion, down 76.2% from last year, and captured 5.3% market share. Telecommunications rounded out the top three industries with 4.3% market share and raised INR112.0 billion in proceeds, a 348.0% from last year.
Axis Bank topped the ranking for Indian rupee denominated bonds underwriting for 2018, with related proceeds of INR708.0 billion and accounted for 26.1% of the market share.