In­dia eq­uity is­suances at 10-year high: re­port

Mint Asia ST - - News - BSY NEH S USMIT

In­dian

com­pa­nies raised a to­tal of $17.2 bil­lion in the first nine months of 2017 by sell­ing eq­uity and eq­uity-linked se­cu­ri­ties, a 138% in­crease com­pared to the same pe­riod last year, a Thom­son Reuters re­port said.

This is the high­est such amount since In­dian com­pa­nies raised $24.2 bil­lion from the eq­uity cap­i­tal mar­kets in the first nine months of 2007.

These nine months of 2017 also saw 55.5% more eq­uity is­sues com­pared with the same pe­riod last year.

The third quar­ter of 2017 saw eq­uity is­suances of $6.7 bil­lion, up 3.1% from the sec­ond quar­ter, added the re­port.

Out of $17.2 bil­lion, funds raised through fol­low-on pub­lic of­fer­ings (FPO) amounted to $11.8 bil­lion, up 189% from a year ago. State Bank of In­dia’s (SBI) $2.3 bil­lion qual­i­fied in­sti­tu­tional place­ment is the big­gest FPO of this year. Funds raised through ini­tial pub­lic of­fer­ings (IPO) amounted to $5.5 bil­lion, a 90% in­crease from the same pe­riod last year. This is the high­est IPO fund-rais­ing for the first nine months pe­riod since 2007, when $6.8 bil­lion was raised, ac­cord­ing to the re­port.

In Septem­ber, SBI Life In­sur­ance Co. Ltd raised $1.3 bil­lion in IPO pro­ceeds, in the big­gest IPO in the last seven years.

Fi­nan­cial ser­vices sec­tor is­suances ac­counted for the ma­jor­ity of eq­uity cap­i­tal mar­kets ac­tiv­ity with a 50.4% mar­ket share, rais­ing funds worth $8.7 bil­lion.

BACK IN FAVOUR Bond of­fer­ings

Ac­cord­ing to Thom­son Reuters, In­dian is­suers raised a to­tal of $51.1 bil­lion in the first nine months of 2017 through pri­mary bond of­fer­ings, an 18% in­crease com­pared to the same pe­riod last year.

This is the high­est amount raised through pri­mary bond of­fer­ings in the first nine months of any year, the re­port said.

UP Power Corp. Ltd, which raised $970.8 mil­lion by is­su­ing pri­vately placed bonds, is the big­gest such of­fer­ing from an In­dian is­suer in 2017. Hous­ing Devel­op­ment Fi­nance Corp. Ltd (HDFC) raised a to­tal of $4.76 bil­lion from 22 bond of­fer­ings, with the aim to fund its hous­ing fi­nance busi­ness.

In­dian is­suers raised $8.7 bil­lion by is­su­ing dol­lar-de­nom­i­nated bonds, a 44.3% in­crease in pro­ceeds from a year ago. In Jan­uary, Bharat Petroleum Corp. Ltd raised $600 mil­lion from its 10-year Us-dol­lar de­nom­i­nated bond of­fer­ing, said the re­port. The In­dian fi­nan­cial sec­tor ac­counted for 71.1% of the ru­pee bonds mar­ket, rais­ing funds to the tune of Rs2 tril­lion, up 7.6% in pro­ceeds from a year ago.

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