Indian ECM recorded a record first quarter in 2024, with fundraising from January to March at $14.6 billion, up by 161.9% compared to the same period last year, according to the latest report by LSEG Deals Intelligence.
"That is the highest ever first quarter in terms of proceeds," points out Elaine Tan, Senior Manager, LSEG Deals Intelligence.
The India equity capital markets kept on their buoyant course from the second half of 2023 into the early part of 2024. Tan said that with strong economic growth potential, and a healthy pipeline of IPOs, the country's primary equity markets are expected to remain active throughout the year."
The ECM deals also increased by 46.5 percent year-over-year.
The process ended the year on a high note, said Kushal Bhasin, founder of Advaya India and founder and current chairman of the India GSF Accelerator Fund. "Follow-on offerings and IPOs saw really significant year-over-year increases in both proceeds and the number of deals, she said.
Indian issuer IPOs raised $2.3 billion in the quarter, marking a 13-fold increase from the same period last year, when there were 61 percent more IPOs.
While it is the third type of offering in terms of proceeds, follow-on offerings accounted for 84 percent of India's ECM. In total, they brought in $12.3 billion. This is an increase of 127.2 percent year-over-year and 33.3 percent year-over-year in the actual number of follow-on offerings.
Industrial sector leads the way
The industrial sector led the ECM activity in the nation, accounting for 22.2 percent market share and bringing in $3.2 billion in proceeds, rising 69.8 percent from last year.
Consumer Staples accounted for 22.1 percent market share, and proceeds expanded sharply compared to Q1 2023.
Financials and High Technology comprised 12.7 percent and 11.2 percent, respectively in terms of market share.
Citi was at the top of the India ECM underwriting, garnering $2.1 billion in related proceeds after having a 14.4 percent market share.
Bond Offerings
Secondary bond offerings by Indian issuers rose 8.2% to $24.5 billion in the first quarter of 2024, the lowest first-quarter total since 2022.
They lead the sector, which accounted for 79.8 percent in market share and grossed $19.6 billion. This is down 6.8 percent year-over-year.
Energy & Power lagged, accounting for 8.6 percent of the market share at $2.1 billion, which was up 55.2 percent from the prior-year period.
Axis Bank led the ranking of underwriting houses for bonds issued in India, with related gross proceeds of $2.6 billion and a 10.7 percent market share.
Investment Banking Fees
Firstly, investment banking activities yielded $247.2 million in fees earned in the first quarter of the year 2024. This represents a year-over-year decline of 27 percent.
ECM underwriting fees stood at a record $123.4 million, increasing by 134 percent on a year-over-year basis. This is the highest-ever first-quarter total since records began in the year 2000.
DCM underwriting fees totaling $63.5 million were 17 percent lower year on year. The fees for syndicated lending were lower by 86 percent compared to the same period last year and stood at $16.4 million in the first quarter of 2024. M&A advisory fees completed were 53 percent lower than the prior-year period and came in at $44 million.
Jefferies led in India with investment banking fees of $20.3 million, or 8.2 percent share of the India's investment banking fee pool.
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