- India's equity capital market is heading for its best month on record, with nearly $10 billion worth of deals completed in August, driven by strong domestic liquidity and investor demand.
- The record dealmaking includes Manipal Health Enterprises’s $958 million initial public offering, alongside a flurry of block trades and institutional placements.
- All but four of the 24 companies that debuted in August are trading above their IPO prices, indicating strong market interest.
- Nomura executives anticipate that public-market activity will remain robust through the rest of the year, with global buyout funds actively exploring opportunities in India.
- Earlier this year, Nomura was involved in advising on Ather Energy's $135 million QIP and Sterlite Technologies' $158 million QIP, as well as block deals worth $272 million in Anthem Biosciences and Clean Max Energy’s $509 million pre-IPO and IPO processes.
- India's equity market has been buoyed by the growing participation of local mutual funds and insurers, as well as strong retail investor interest and the return of global funds.
- Despite the strong activity in the primary market, the secondary market remains subdued, with the benchmark NSE Nifty 50 Index little changed from its level two years ago.
India's equity capital market is poised for its best month on record, with nearly $10 billion in deals completed in August. This surge is led by significant transactions, including the government’s $3.2 billion share sale in Life Insurance Corp. and Manipal Health's $958 million IPO.12
Nomura's investment banking arm anticipates continued robust public-market activity, driven by strong domestic liquidity and a resurgence of global funds.45
“Over the last couple of months, we have concluded several transactions across equity capital markets,” said Amit Thawani, Nomura’s India head of investment banking.
Despite this activity, the secondary market remains sluggish, with the NSE Nifty 50 Index showing little change from two years ago.7
“The record dealmaking has been driven by the growing heft of India’s local mutual funds and insurers,” which have been eager buyers, alongside retail investors and returning foreign money.
“Companies have overcome hesitancy caused by the trade tantrum and war in the Middle East,” noted Sunil Shah, CEO of Khambatta Securities.
All but four of the 24 companies that debuted in August are trading above their IPO prices, indicating strong market absorption of new listings.3
The upcoming major offerings from the National Stock Exchange of India and Jio Platforms are expected to further boost market activity.
“The record dealmaking is fueled by domestic mutual funds, insurers, and retail investors, with foreign money returning. This strength bodes well for upcoming big-ticket offerings from NSE and Jio Platforms, despite the secondary market's subdued performance.”
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