Strong Show. Indian equity capital markets break records with $14.6 billion in Q1 fundraising, up 161.9% YoY

Indian equity capital markets (ECM) saw a record start this year, with fund raising in January-March 2024 at $14.6 billion, up 161.9 per cent compared to a year ago, according to the latest data from LSEG Deals Intelligence.

This is the highest-ever first-quarter total by proceeds, said Elaine Tan, Senior Manager, LSEG Deals Intelligence.

“The India equity capital markets maintained robust momentum from the second half of 2023 into the beginning of 2024. 

Tan said that with India’s strong economic growth potential and a healthy pipeline of IPOs, the country’s primary equity markets are anticipated to remain busy throughout the year.”.

A number of ECM offerings also saw a 46.5 per cent increase year-on-year. 

Follow-on offerings and IPOs witnessed substantial year-on-year increases in both proceeds and the number of deals, she said.

Initial public offerings (IPO) from Indian issuers raised $2.3 billion, a 13-fold increase compared to the same period last year. The number of IPOs saw a 61 per cent year-on-year growth. 

Follow-on offerings, which accounted for 84 per cent of India’s overall ECM proceeds, raised $12.3 billion, up 127.2 per cent from a year ago, while a number of follow-on offerings grew 33.3 percent year-on-year.

ECM Issuance from India’s industrial sector accounted for the majority of the nation’s ECM activity, with a 22.2 per cent market share worth $3.2 billion in proceeds, a 69.8 percent increase from a year ago. 

Consumer Staples captured a 22.1 percent market share as proceeds grew significantly compared to the first quarter of 2023. 

Financials and High Technology captured 12.7 per cent and 11.2 per cent market share, respectively.

Citi leads the ranking for India’s ECM underwriting with $ 2.1 billion in related proceeds and a 14.4 per cent market share.

Bond Offerings

Primary bond offerings from India-domiciled issuers raised $24.5 billion in the first quarter (January-March) of 2024, down 8.2 percent in proceeds compared to the same period last year. This is the lowest first-quarter total since 2022.

Indian issuers in the financial sector captured 79.8 per cent market share and raised $19.6 billion in proceeds, down 6.8 percent from last year. Energy & Power followed behind with an 8.6 per cent market share worth $2.1 billion, up 55.2 per cent from a year ago.

Axis Bank topped the ranking for underwriting India-issued bonds, with related proceeds of $2.6 billion and a 10.7 per cent market share.

Investment Banking Fees

Investment banking activities earned $247.2 million in estimated fees during the first quarter of 2024, a 27 per cent decline from the last year. 

ECM underwriting fees reached $123.4 million, up 134 per cent from a year ago. This is the highest first-quarter total since records began in 2000. 

DCM underwriting fees totalled $63.5 million, down 17 per cent from a year ago.  Syndicated lending fees fell 86 per cent from the comparable period last year and generated $ 16.4 million in the first quarter of 2024. Completed M&A advisory fees declined 53 per cent year-on-year and totalled $44 million. 

Jefferies took the top position for overall investment banking fee ranking in India with a total of $20.3 million, accounting for a 8.2 per cent wallet share of India’s investment banking fee pool.

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