2020: The Year of Public Offerings
Ria V Vaghela Despite the economy contracting and equity capital markets observing a number of crashes and volatility, Public Offerings (that includes IPOs, QIPs, Rights Issues) has been on a high this year. IPOs contributed to 40.9% of the overall deal activity in the Equity Capital Market followed by Qualified Institutional Placements (QIPs) and Rights Issues.
The first six months from Jan-Jun observed cumulative deals value of ~$13.05 Billion, a 2.2x improvement to 2019. Highest number of deals was observed in Industrials sector followed by Financials and Telecommunication sectors respectively.
Quarter 1 deal activity (when COVID-19 had not impacted India significantly)
Number of Deals Closed: 17
Deal amount: $4.85 Billion
Select Deals closed in the Quarter:
| Company | Deal/Offering Type | Deal/Offering Amount (in $ Million) | Sector |
|---|---|---|---|
| Cholamandalam Investment and Finance Company Ltd. | QIP | 126 | Financials |
| Bharti Airtel Ltd. | QIP | 2,000 | Telecommunication Services |
| Piramal Enterprises Ltd. | Rights Issue | 512 | Industrials |
| KEI Industries Ltd. | QIP | 70 | Industrials |
| Avenue Supermarkets Ltd. | QIP | 573 | Consumer Staples |
| Prestige Estates Projects Ltd. | QIP | 65 | Financials |
| SBI Cards and Payment Services Ltd. | IPO | 1443 | Financials |
Quarter 2 deal activity (when COVID-19 impacted India significantly)
Number of Deals Closed: 5
Deal amount: $8.2 Billion
Select Deals closed in the Quarter:
| Company | Deal/Offering Type | Deal/Offering Amount (in $ Million) | Sector |
|---|---|---|---|
| Reliance Industries Ltd. | Rights Issue | 7,102 | Industrials |
| JM Financial Ltd. | QIP | 102 | Financials |
| Kotak Mahindra Bank Ltd. | QIP | 985 | Financials |
Other Notable Offerings in 2020
- Mindspace Business Park REIT
- Rossari Biotech Ltd.
- Ksolves India Ltd.
- Laxmi Goldorna House Ltd.
- Hindprakash Industries Ltd.
- Vaxtex Cotfab Ltd.
- Prince Pipes and Fittings Ltd.
Ria Vaghela
MSc Finance graduate from the London School of Economics and Political Science (LSE)
Ria V Vaghela is an M&A Executive at RSM UK and an MSc Finance graduate from the London School of Economics and Political Science (LSE). She has worked at Jefferies, Dial Partners and 7i Capital prior to RSM UK gaining an experience of about 1.5 years. She has also worked as an Editor and Content Writer for The Representative Media. Apart from finance, she is interested in reading books on psychology and economics and also likes to paint and play lawn tennis