INDIA EQUITY, EQUITY-LINKED ISSUANCE SLOWS DOWN 37.1%

 thompson reutersEquity and equity-linked issuance by Indian companies raised a total of US$9.4 billion during the annual period of 2013, a 37.1% decline from the comparable period in 2012, and the lowest annual period since 2011 (US$8.7 billion).

Follow-on offerings captured majority of India’s equity capital markets activity with US$9.0 billion worth of proceeds, a 31.5% decrease from last year’s volume, and accounted for 96.1% of the market activity this year. This is the lowest annual period in terms of proceeds amount since 2011 when volume fell to US$7.1 billion.

Initial public offerings (IPO) totaled US$343.3 million, a significant drop of 73.3% in proceeds from the full year 2012 volume (US$1.3 billion), and the lowest annual level since 2001 (US$69.9 million).

Citi topped the ranking for India’s equity and equity-linked underwriting in 2013, with related proceeds of US$1.2 billion from 10 deals and accounted for 13.3% of India’s equity capital markets.

According to estimates from Thomson Reuters/Freeman Consulting, India’s equity capital raisings generated imputed fees worth US$48.9 million in 2013, a 33.1% decline from the comparative period last year.

With estimated fees of US$4.3 million, Citi took the lead for India ECM imputed fee ranking this year, and captured 8.7% market share of the fee pool.