India to see at least $30 billion raised annually through equity sales in 2024 and beyond, says JPMorgan
JPMorgan Chase & Co. expects India to raise at least $30 billion annually through primary and secondary share sales in 2024 and beyond, as companies and their shareholders are more willing to tap the market for funding.
Sales of additional shares in listed companies in the country have surpassed $10 billion this year, more than the tally for all of 2022. The momentum can sustain into next year and beyond as owners of Indian companies are keen to raise funds for other investments. Demand from local asset managers as well as foreign investors is also driving share sales.
The American bank is the top manager of equity and rights offerings in India in the first eight months of 2023, with a market share of nearly 15%.
In contrast, India’s IPO activity has slowed down significantly this year, tracking a global slump in dealmaking. However, a couple of $1 billion-plus IPOs could return to India after the country’s federal elections between April and May, according to JPMorgan.
Strong corporate earnings and robust economic growth are drawing investors even as they flee other Asian emerging markets. China’s currency has plunged amid concerns over the once fast-growing nation’s precarious economic outlook and geopolitical tensions.
“Because of recent softness in Chinese economic data, a lot of these global EM fund managers are underweight on China and now where you go and deploy that extra capital, you must have a counter overweight as well,” said JPMorgan’s India head of equity capital markets, Abhinav Bharti. “India is benefiting from that.”
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