The fee collected by investors to maintain the purchase of the equity unit fell 33.4 percent year-on-year (YoY) to $ 95 million in the first six months of 2022. due to the significant increase in market volatility.
The total equity share in the first quarter (H1) fell 40 percent to $ 9.1 billion – the lowest low -yield equity ratio since 2016 – according to Refinitiv, a market data provider.
A 10 percent fall in benchmark indicators and a cut in the open market led to a fall in equity output, such as fixed assets, equity, and contracts. block, by listed companies.
The mop-up through initial public offerings (IPOs), however, hit a record.
Girls sales increased to $ 5.2 billion – the highest for the first six months of any calendar year. This is on the back of the IPO of India’s State Life Insurance Corporation (LIC), which raised $ 2.72 billion – 30 per cent of the total equity market capitalization (ECM) gained during H1. .
The number of IPOs was 54 percent higher than a year ago. After LIC, logistics major Delhivery’s $ 676-million IPO was the second largest ECM operation during H1.
“With uncertainties brought on by stock markets, geopolitical constraints, and unfavorable macroeconomic factors, global IPOs have seen a sharp decline this year after the level of activity seen. Will be in 2021. India is one of the few to see an increase in IPO activity.However, with high volatility in secondary markets and water -tight measures, activity is likely to slow down. India’s IPO in the coming months, ”said Elaine Tan, senior analyst, Refinitiv.
It accounted for 43.4 percent of ECM’s total revenue, an increase of $ 3.9 billion – down 63 percent, compared to the same period last year. The number of final offers fell 14 percent YoY.
In terms of terms, the financial sector accounted for the largest ECM activity, with 34.4 percent of the market. However, spending by financial institutions is 56 percent lower, compared to H1 of 2021. Consumers are the second largest segment of inflation, followed by health care.
Kotak Mahindra Bank won the table for ECM issuance, with 18 percent of the market. Citibank saw it rise to second out of sixth position in H1 of 2021.