The number of deals also saw a significant 66% increase, totalling 340 in CY23 compared to 205 in CY22. Notably, block deals took precedence, contributing to the substantial rise by generating over $20 billion through several large deals.
Maintaining its leadership position from CY22, Kotak Investment Banking emerged as the frontrunner in the ECM league table in CY23, according to Bloomberg data. The firm secured a noteworthy market share of 14.5%, with deal values amounting to ₹31,303 crore, compared to the previous year’s figure of ₹15,045 crore.
JP Morgan ascended in the league table, progressing from the sixth position to the second, reflecting a significant advancement with a market share of nearly 8%. BofA Securities maintained its third position with a 7.52% market share.
IIFL Finance made substantial strides, securing the fourth position in CY23, a notable climb from its 10th position in CY22. Similarly, JM Financial’s rank jumped to 5 from the previous year’s rank of 11.
In the latest rankings, three global banks – Morgan Stanley, Citi, and Goldman Sachs – experienced declines in the league table. Morgan Stanley’s rank slipped to the sixth position from fifth, reflecting a slight decline. Citi, on the other hand, saw a more significant shift, falling to the eighth position from its previous second position. The dynamics of the league table underscore the evolving positions of these global financial institutions in the market.
The ECM deals include initial public offerings (IPOs), block deals, and qualified institutional placements (QIPs). In CY23, 57 companies raised ₹49,434 crore, while 45 companies raised ₹52,340 crore through QIPs. “A significant highlight in the Indian equity market in 2023 was its demonstration of the depth of India’s secondary markets, instilling confidence among global private equity (PE) firms for post-IPO secondary market exits,” said V Jayasankar, head of equity capital markets at Kotak Investment Banking. “Clean-out trades in CY23 reached an impressive total of $5.5 billion, facilitating exits for 13 PE firms across 16 counters.”
Several notable block deals took place in 2023, including BPEA EQT selling its complete 26.63% stake in Coforge (formerly NIIT Technologies) for ₹7,684 crore. Additionally, ChrysCapital and Capital Group divested a combined 7.6% stake in pharmaceutical company Mankind Pharma for ₹5,589 crore.