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India's successful mega share offerings are creating waves globally. Domestic companies, which raised a total of $4.6 billion in the first half of this calendar, have catapulted India to the sixth position in the global list of countries in terms of IPO fund collections.
The United States leads the chart with over $18.43 billion, followed by China, which saw companies mopping up over $17.26 billion in the first six months of this calendar.
Companies from Russia, which stood third, mobilized over $16 billion from the IPO market, followed by Brazil ($9.25 billion). Last year, for the same period, India was ranked thirteenth with a proceeds amount of $1.86 billion.
The Delhi-based realty developer DLF's initial public offer, with proceeds amount of $2.268 billion, is the fourth largest IPO globally in the first half of this year.
Russia's VTB Bank's IPO is in the top of the global IPO chart with proceeds of nearly $8 billion, followed by China's Citibank with $6 billion and the US-based Blackstone Group's $4.75 billion.
"The future outlook for India is very positive as all the recent papers have got subscribed and given a strong growth momentum to the country. The money is being raised as growth capital for the companies and even the size of the issues has grown. There is enough demand for Indian papers globally, considering the companies are growing at 20-25 per cent per annum. There is a lot of opportunities for Indian companies," said Gunit Chadha, MD& CEO of Deutsche Bank India.
The BRIC IPO volumes for this year have more than doubled compared to the same period a year ago. Six out of the ten biggest IPOs came from the BRIC countries. So far this year, UBS is the top book-runner managing the biggest deals in BRIC, followed by Morgan Stanley, Deutsche Bank AG, Citigroup and Goldman Sachs.
According to Thomson Financial, UBS was involved in a total of 28 issues of $6.7 billion, Morgan Stanley managed 14 issues of amount $4.37 billion and Deutsche Bank AG handled 10 issues worth $4.2 billion, so far this year.
The DLF issue was subscribed 3.47 times due to the prolific bidding by 300 foreign institutional investors from all over the world. Merrill Lynch and Deutsche topped the list by putting in bids worth over $1 billion each in the issue.