Equity capital market deal value falls to 8-yr low

In the comparable period last year there were as many as 76 equity capital market (ECM) transactions which raised capital worth USD 9 billion. The Indian ECM volume has reached USD 7.3 billion by way of 44 transactions till August 7 this year -- the lowest year-to-date volume since 2004, when it stood at USD 5.9 billion, Dealogic said.

Oil & Natural Gas Corp's USD 2.6 billion follow-on via Citi, Bank of America Merrill Lynch, HSBC, JM Financial Group, Morgan Stanley and Nomura was the largest Indian ECM transaction this year so far. The Indian ECM bookrunner ranking till August 7 2012 was led by Citi with a 39.9% share, followed by HSBC and Morgan Stanley with 8.6% and 7.7% share,
respectively.

Meanwhile, Indian ECM convertible volume totaled USD 130 million via just one deal -- Amtek India's USD 130 million issue via Standard Chartered Bank. This is the lowest volume since 2003 and down 83% compared with 2011 year-to-date period when USD 775 million was raised via three deals, Dealogic said.

"The peak year for Indian convertible issuance was in 2007 YTD when USD 5.6 billion was raised via 42 deals. Issuance has subsequently failed to reach the USD 2 billion mark in every YTD period since 2007," the report said.