India emerges as hotspot for global equity capital markets amid Asia's deals drought

India emerges as hotspot: India is witnessing a surge in activity in the global equity capital markets, propelled by a robust pipeline of large block trades and listings, including Hyundai Motor's $3 billion IPO of its unit. 

Bankers anticipate increased capital inflows into India's market, which has already captured a record share of global equity capital market deals this year.

While other Asian markets experience a dearth of deals due to factors like higher global interest rates, geopolitical tensions, and China's economic slowdown with restrictions on IPOs, India stands out as the second busiest market worldwide for equity capital market transactions after the United States.

In the first quarter of 2024, Indian companies raised a staggering $2.3 billion through IPOs, marking a notable surge from the $166.5 million raised in the same period last year. 

Overall equity capital market deals in India rose by 139 per cent, making it the most active market across the Asia Pacific region.

Rahul Saraf, Citigroup's India head of investment banking, noted the unprecedented scale and volume of transactions in India, stressing the country's growing prominence in terms of deal size, scale, and issuer quality.

The National Stock Exchange (NSE) emerged as the third most active listing venue globally in the first quarter, underscoring India's appeal to global investors seeking lucrative opportunities amidst the current economic landscape.

India's equity market is set for more mega deals, including the potentially record-breaking IPO of Hyundai Motor's India unit and the anticipated $1 billion IPO of Vishal Mega Mart. 

With a flurry of companies lining up for listings later in the year, market activity is expected to remain vibrant post the general elections scheduled from April 19.

Leading the league table for Indian equity capital market activity, Citigroup leads the pack, followed by Bank of America and ICICI Bank, reflecting the strong foothold of global financial institutions in India's burgeoning market.

(With Reuters Inputs)