India’s ECM flight to quality
The country is enjoying a record year in equity capital raising, built on rights issues by Reliance Industries and the country’s top banks. Behind the numbers, however, there are signs that the leaders will get stronger, while those behind may struggle.
India has suffered like few other countries under Covid-19. It has the second-highest number of cases, over five million, and the third-highest number of deaths, at least 82,000, in the world. The density of its population and the strain on its health services makes its outlook particularly tough.
The heavy burden of the pandemic had a pronounced effect on equity capital raising in the country: first shutting it down, then driving it to record levels in a matter of months. With $33 billion raised in the equity markets by early September, India has never seen anything to compare with it.