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India’s equity capital market nears record as August deal value tops $10B
About $10 billion of deals were priced in August, led by Life Insurance Corp. of India’s $3.2 billion share sale, with most August IPOs trading above offer prices.
India’s equity capital markets are on track for their best month on record, with nearly $10 billion in deals priced in August, despite weaker performance in the country’s secondary stock market, according to LiveMint Markets.
The month’s activity was led by the government’s $3.2 billion sale of shares in Life Insurance Corp. of India, while Manipal Health Enterprises Ltd. raised about $958 million in an initial public offering. The tally also reflected block trades and institutional placements that helped support large fundraising.
LiveMint Markets said the momentum is being driven by domestic liquidity from the growing weight of local mutual funds and insurers, strong retail participation, and the return of global funds. It noted that this strength could carry over to major offerings expected later this year from the National Stock Exchange of India Ltd. and Jio Platforms Ltd.
In contrast, the secondary market remains subdued, with India’s benchmark NSE Nifty 50 index little changed versus two years ago. LiveMint Markets added that all but four of the 24 companies that debuted in August are trading above their IPO prices, as some issuers accepted lower valuations to complete transactions.