India’s Equity Offering League Table Has A New No. 1

A traffic signal stands next to the BSE) building in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

India’s Equity Offering League Table Has A New No. 1

ICICI Securities Ltd. has emerged as India’s No. 1 manager of equity offerings this calendar year as domestic companies make stock market debuts at a record pace.

The broking arm of ICICI Bank Ltd. is the lead manager for equity deals worth more than Rs 15,000 crore, taking the top spot, according to data compiled from Bloomberg’s India League Tables. Axis Bank Ltd. follows, with its investment banking division having managed issues worth Rs 13,539 crore.

Except Axis Bank, none of the top five managers from 2020 feature among top five this year. ICICI Securities jumped 10 spots to take the lead.

Indian companies continue to raise capital during the pandemic. A record-setting stock surge has also spurred a blitz of initial public offerings.

Credit allocation, or the proportion of the equity deals (including rights issues) credited to lead managers, stood at Rs 1.39 lakh crore in the first eight months of 2021. That compares with Rs 2.14 lakh crore in entire 2020. The total value of bond issues managed stood at Rs 2.09 lakh crore, against Rs 5.36 lakh crore in the full preceding year. (Eight-month data for 2020 not available).

Equity and Rights Issues

In 2021 so far, 52 managers were allocated deals in 101 of 102 equity deals. Of these, 100 were initial or additional equity offerings, while two were rights issues or sale of shares to existing investors.

ICICI Securities, Axis Bank, BofA Securities, Kotak Mahindra Bank Ltd. and Citi were the top five managers, with a combined share of 46%. Top 10 managers cornered a 71% share.

  • ICICI jumped 10 ranks over 2020 to the top so far this year.

  • Axis Bank, which handled the most issues at 32, jumped four ranks to second spot.

  • BofA Securities unchanged at the third position.

  • Kotak Mahindra rose five spots to the fourth rank.

  • JPMorgan slipped four positions to be fifth.

  • Citi one spot to the sixth position.

The financial sector saw the highest number of equity offerings, followed by consumer discretionary, industrials, materials, and communications.

Debt Issues

Axis Bank led the managers of bond issues.

Axis Bank was followed by HDFC Bank Ltd., ICICI Securities, Punjab National Bank, and ICICI Securities Primary Dealership to complete the top five with a combined share of more than 60%. Top 10 managers had an 82% share.

According to Bloomberg League Tables, 40 managers were involved in 483 out of 2,126 bond or debt issues so far this year. These 40 managers were credited Rs 2.11 lakh crore of the total debt issuances worth Rs 5.07 lakh crore so far this year. The rest were managed by other bankers and debt syndicators.

  • Axis Bank, HDFC Bank, and ICICI Securities maintained their position in the top three, like last year.

  • Punjab National Bank and ICICI Securities Primary Dealership jumped one and two positions over a year earlier, respectively, to rank four and five.

The financial sector led bond issuances, followed by government bonds, and industrials, materials, and energy sectors.

Also read: India’s IPO Rally Is Stuttering And Valuations Are To Blame

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