Infosys share sale catapults Deutsche Bank to top of league table

Deutsche Bank has toppled Citibank on the league tables for equity capital markets (ECM) this year, thanks to the mega share sale by Infosys co-founders

Deutsche Bank has surpassed Citibank on the equity capital markets (ECM) league tables this year. According to Bloomberg, the German bank accounted for 18 per cent of the $10-billion domestic ECM market this year.

Citibank, ranked first on Bloomberg's 2013 ECM league table for India, has slipped to the third position, after Deutsche Bank and JPMorgan. Citibank and JPMorgan have a market share of about 11 per cent each.

Deutsche Bank's rise in the table was propelled by Infosys's mega share sale last month — it was the only investment bank handling the transaction, worth about Rs 6,500 crore. The deal saw four founder promoters cut their stakes in the technology major.

This year, Deutsche Bank was involved in six share sales. State Bank of India's Rs 9,600-crore qualified institutional placement (QIP) and the Rs 2,500-crore stake sale in Hero MotoCorp by private equity firm Bain Capital were the other major transactions.

Sharp gains in the equity market, coupled with robust capital flows, have aided equity issuances this year. According to Bloomberg, overall ECM activity stood at Rs 62,123 crore, with a total of 107 transactions. The ECM activity, which includes all equity-related issuances such as QIPs, Initial Public Offerings (IPOs) and block trades, increased 20 per cent compared to last year. In 2013, total equity issuances stood at Rs 52,958 crore, across 95 issues.

This year, most equity issuances have been through the QIP route, with companies issuing fresh shares to institutional investors. Activity in the IPO segment has, however, been dull — only five companies have launched IPOs, raising a combined Rs 1,200 crore, the least in a decade.

Investment bankers expect the IPO segment to fare better next year.