JPMorgan sees India share-sale boom reaching US$30 billion in 2024
Strong corporate earnings and robust economic growth are drawing investors even as they flee other Asian markets including ChinaSales of additional shares in listed companies in the country have surpassed US$10 billion this year, more than the tally for all of 2022IPOBloombergPublished: 3:05pm, 18 Sep, 2023Why you can trust SCMP
India will see at least US$30 billion raised annually through primary and secondary share sales in 2024 and in the years to come, as companies and their shareholders are more willing to tap the market for funding, according to JPMorgan Chase.
Sales of additional shares in listed companies in the country have surpassed US$10 billion this year, more than the tally for all of 2022, according to data compiled by Bloomberg.
The momentum can sustain into next year and beyond as owners of Indian companies are keen to raise funds for other investments, said Abhinav Bharti, India head of equity capital markets at JPMorgan. Demand from local asset managers as well as foreign investors is also driving share sales, he added.
“In block trades, every year now you can average US$10 billion from 2024 onwards,” Bharti said in an interview in Mumbai. “I can see the building blocks of India becoming a market that can every year raise more than US$30 billion from primary and secondary sales for [companies].”
JPMorgan is the top manager of equity and rights offerings in India in the first eight months of 2023, according to data compiled by Bloomberg League Tables. The American bank has a market share of nearly 15 per cent, followed by Kotak Mahindra Bank, which has an 11 per cent share of the market.