India equity issuances at 10-year high: report
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.