ECM , IPO and M&A shoot up in India

India’s follow-on and IPO volumes touched new record highs this year, according to a report from Dealogic.The country’s follow-on volumes rose 43 percent to touch a record high of $12.5 billion this year, while IPO volumes increased to $4.8 billion, almost 2.5 times the volume in 2009, the report said. This surge in follow-on and IPO volumes has raised the Equity Capital Market (ECM) issuance to $18.6 billion, up 54 percent from last year.

However, follow-on volumes, as a percentage of total ECM deals, have fallen to 67 percent this year from 73 percent last year. The biggest deal so far this year has been National Mineral Development Corp's follow-on of $2.2 billion over three separate deals.
Indian US dollar bond volumes rose to a two-year high of $4.1 billion this year, compared to $181 million last year, though it is way behind the record $7.2 billion volumes witnessed in 2007. FIG volume also totaled $3.6 billion this year ranking second in Asia (ex-Japan). This the second largest bond issue so far after Bank of China’s (Hong Kong) $1.6 billion issue in February.
Indian domestic M&A volumes almost doubled to $42.1bn this year from $22.0 billion last year with 659 transactions to date. One of the the biggest deals was Vedanta Resources, which picked up a 60 percent stake in Cairn India by paying $9.5 billion. The higher bond volume has pushed total Indian M&A volumes to a new full year high of $55.3 billion worth of deals so far, up 1 percent over the previous record of $54.8 billion in 2007.
India-targeted M&As rose 110 percent year-on–year with deals worth $34.6 billion announced this year compared to $ 16.5 billion last year.
Citi grabbed a 12.7 percent market share as the ECM bookrunner for 2010 to date, with $2.3 billion worth of deals. Rothschild was the top M&A advisor for the year to date, with deals valued at $28.2 billion, and a 34 percent market share. Bharti's acquisition of Zain Africa for $10.7 billion remains the largest M&A deal this year followed closely by Vedanta Resources's acquisition of Cairn India for $9.5 billion.