Wednesday, 26 June 2019

India Equity House

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ICICI Securities stole a march on both local and international rivals in 2016, winning deals in every segment of the Indian equity capital market.

ICICI rocketed to second in the Indian ECM league table for the period under review, up from 14th the previous year. It was one of the most active arrangers in a busy IPO market, managing 11 of the 24 major listings, beat global competitors to high-profile institutional placements and completed block trades for private and government vendors.

Small and medium-sized companies trusted ICICI with their plans to go public, while the brokerage also worked on some landmark transactions, including ICICI Prudential’s Rs60bn (US$876m) listing, the year’s largest.

It helped arrange the first floats from a variety of sectors, including insurance, small finance banking, business services and enzyme manufacturing, requiring extensive education for both retail and institutional investors.

The bank’s large retail network, international presence and research capabilities helped it sell issues successfully. The IPOs of Advanced Enzymes and Quess were among the most oversubscribed issues during the year. ICICI Securities also brought in around 60% of ICICI Prudential’s anchor book and 50% of its qualified institutional book.

Private equity sell-downs were a feature of the IPO market in 2016, and ICICI’s coverage of private equity clients helped it win a role on the listings of Teamlease, Quick Heal, Thyrocare Technologies and Advanced Enzymes.

ICICI also made its presence felt in the more subdued secondary market with its first overnight block trades – a segment traditionally reserved for global underwriters.

Despite being a newcomer, ICICI played a significant role in Castrol’s two block trades in Castrol India, earning 52% of the fees. The two blocks raised a total of Rs39bn.

ICICI also completed a Rs20bn qualified institutional placement in Motherson Sumi Systems, a day after Yes Bank pulled its high-profile US$1bn share sale after failing to hit its target price.

ICICI played a key role in share sales in state-owned companies. It was the only Indian entity in the top three banks hired to manage Specified Undertaking of the Unit Trust of India or SUUTI’s stakes in Axis Bank, ITC and Larsen & Toubro, totalling US$8bn–$9bn. The first Rs21bn block in L&T was launched in November.

ICICI also managed the Rs50bn offer for sale in NTPC, the largest state-owned deal of the year and a rare government sell-down at a decent fee. It was one of three banks on a sell-down in Container Corporation of India, the government’s first share sale since the company’s IPO in 1998.

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