1 week ago
India’s Equity Deals Near $10 Billion in Record August
India’s companies and government sold nearly $10 billion worth of shares in August.
This could make August the busiest month ever for Indian equity deals.
The largest sale came from the government’s offering of shares in Life Insurance Corporation of India.
Manipal Health Enterprises also raised a large amount through its IPO.
Indian mutual funds, insurance companies and individual investors were eager to buy shares.
Some foreign investors also returned to the market.
This activity happened even though India’s broader stock market has not performed strongly.
Most companies that began trading in August were worth more in the market than at their IPO prices.
Almost $10 billion in Indian equity deals were priced in August, putting the month on track for a record.
The government’s $3.2 billion share sale in Life Insurance Corporation of India led the activity.
Manipal Health Enterprises’ $958 million initial public offering and other block trades added to the total.
Domestic mutual funds, insurers, retail investors and returning global funds helped absorb new share offerings.
The strong primary market contrasted with a subdued $5.1 trillion secondary market, while most August IPOs traded above their offer prices.
- Who
- The Indian government, companies including Life Insurance Corporation of India and Manipal Health Enterprises, and domestic and global investors.
- What
- India’s equity market priced almost $10 billion in deals during August, potentially making it the market’s strongest month on record.
- Where
- India’s equity capital market.
- When
- August; the articles do not specify the calendar year beyond copyright information.
- Why
- Strong domestic liquidity, participation by mutual funds, insurers and retail investors, and renewed interest from global funds supported demand for new shares.
Key facts
- August equity deals
- Almost $10 billion
- Largest deal
- The government’s $3.2 billion sale of shares in Life Insurance Corporation of India
- Manipal Health IPO
- $958 million
- Secondary market size
- $5.1 trillion
- August IPO performance
- All but four of 24 new listings were trading above their IPO prices
- Potential upcoming offerings
- National Stock Exchange of India and Jio Platforms
Quotes
Sunil Shah
Group chief executive of Mumbai-based Khambatta Securities Ltd.
“Companies have overcome hesitancy caused by the trade tantrum and war in the Middle East”
livemint.com
Sources
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