Renewed confidence in Indian capital market backed by the government-led reform measures saw companies raise a total $14.9 billion in calendar year (CY) 2012, up a staggering 72% on a year-on-year basis
As per estimates from Thomson Reuters/Freeman Consulting, as many as 101 new issues were launched last year, which was largely dominated by follow-on public offerings (FPOs). As per the data, Indian equity capital markets raised $13.1 billion via FPO, which includes offer for sale issues (OFSs).
Energy and Financials were the biggest contributors to equity capital markets via FPOs. ONGC ($2.53 billion), HDFC ($1.95 billion and $846 million in February and May 2012, respectively), NMDC ($1.08 billion), and Cairn India ($925 million) were top five FPO deals of 2012.
Convertible issuance (FCCBs) also saw a 98% growth over proceeds raised last 2011, Reuters data showed.
On the flip side, money raised via initial public offerings (IPOs) dropped 6% from CY11 to $1.3 billion despite having some high-profile IPOs like Bharti Infratel ($750 million), Multi Commodity Exchange ($135 million), PC Jeweller ($110 million), and CARE Ratings ($99 million) among top five IPOs of 2012.
Citi took the first spot ? from Bank of America Merrill Lynch ? as top book running lead manager (BRLM) for underwriting equity and equity-linked issuances this year, The US-investment banking major accounted for 34.8% of the market share in 2012, with related proceeds of $5.2 billion from 14 deals.
Among top BRLMs of 2012, ICICI Bank took the third spot (from fourth last year), JM Financial Group stood at fourth (from fifth last year), and Kotak Mahindra Bank jumped up to seventh (from eight last year). Surprisingly, Axis Capital also featured in the list of top 10 BRLMs after missing it list year.
Interestingly, fees generated by lead managers on equity capital market raising grew an impressive 20.4% from last year to $98 million, Reuters data showed. With estimated fees of $7.6 million, Standard Chartered led the India ECM fee ranking this year, after a 122.7% increase in fees year-on-year and gaining 3.6 market share points to capture 7.8% of the wallet share.
