Investment bankers mopped up $243.8 million in equity capital market (ECM) underwriting fees in the first half of the year, up 127 per cent from a year ago and the highest first half total since 2007, according to a report by LSEG Deals Intelligence.

Citi leads the ranking for the underwriting of India-domiciled ECM activity with $3.3 billion in related proceeds and 11.3 per cent market share.

ECM activity hit a record high and raised $29.5 billion in the first half of 2024, up 144.9 per cent compared to a year ago, making it the highest-ever semi-annual total by proceeds, the LSEG report said. Number of ECM offerings saw a 63.8 per cent increase year-on-year.

Initial public offerings (IPO) from Indian issuers raised $4.4 billion, up 97.8 per cent compared to the same period last year, and number of IPOs jumped 70.6 per cent year-on-year. Follow-on offerings, which accounted for 85 per cent of India’s overall ECM proceeds, raised $25.1 billion, up 155.7 per cent from a year ago, while number of follow-on offerings grew 56.4 per cent year-on-year.

ECM Issuance from India’s industrials sector accounted for majority of the nation’s ECM activity with 21.4 per cent market share worth $6.3 billion in proceeds, a 96.2 per cent increase from a year ago. Telecommunications captured a 16.6 per cent market share as proceeds grew significantly compared to the first half of 2023. Financials rounded out the top three and captured 14.5 per cent market share, raising $4.3 billion, up 57.2 per cent year-on-year.

Overall activity

Investment banking activities earned $530.4 million in fees during the first half of 2024, a 11 per cent decline from last year, according to LSEG Deals Intelligence. This includes $114.9 million in total DCM underwriting fees and $90.8 million in M&A advisory.

Kotak Mahindra Bank took the top position for overall investment banking fee ranking with a total of $40.6 million, accounting for 7.6 per cent wallet share of India’s investment banking fee pool.

Primary bond offerings from India-domiciled issuers raised $40.8 billion in the first half of 2024, down 25.6 per cent in proceeds compared to the same period last year, making it the lowest first half total since 2022.

M&A activity totaled $37.3 billion in the first half of 2024, a 4.4 per cent increase from a year ago, the highest first half period since 2022.Target India M&A activity reached $34.4 billion, up 8 per cent compared to last year. Domestic M&A activity totaled $17.2 billion, down 8.8 per cent from the first half period last year. Inbound M&A grew 32.4 per cent from a year ago and totaled $17.2 billion. Outbound M&A activity reached $2.7 billion, down 29 per cent year-on-year, the lowest first half total since 2019.

US was the most active nation doing cross-border deals with India – both as target for outbound and acquiror for inbound activity.

Majority of the deal making activity involving India targeted the high technology sector which totaled $5.8 billion and accounted for 15.6 per cent market share.