HSBC leveraged its relationships across countries and asset classes to outpace the competition in India’s equity capital markets in 2020 with a range of landmark transactions.
HSBC has been working hard in the past few years to combine its local corporate relationships, strong debt market franchise and regional sales expertise to win equity advisory deals in India.
The UK-headquartered bank brought all the pieces together in 2020 with roles on many of the most important deals of the year. It worked on the full range of ECM deals – handling IPOs, qualified institutional placements, rights issues, follow-on offers, overnight blocks and offers for sale – and successfully marketed issues from a diverse mix of sectors, bringing in first-time investors and sovereign wealth funds to support crucial fundraisings.
HSBC stepped up for its Indian clients in 2020. It was quick to react when companies needed to raise capital, managing a Rs15bn (US$205m) rights issue for Shriram Transport Finance and a Rs41bn qualified institutional placement and Rs34bn offer for sale in Avenue Supermarts.
Yes Bank’s Rs150bn follow-on offer further highlighted HSBC’s ability to deliver for its most important clients. After State Bank of India – the country’s largest bank and one of HSBC’s oldest banking relationships – was installed as Yes Bank’s largest shareholder in a government-orchestrated rescue in March, HSBC was one of the first foreign banks to take up the challenge of raising new capital.
It advised Yes Bank to opt for a follow-on public offer over a much quicker institutional placement and helped run a price discovery process that brought in some of the biggest international investors. Yes Bank raised Rs150bn through a follow-on offer priced at Rs12, a 55% discount to the pre-deal close.
HSBC also helped SBI monetise equity stakes in two subsidiaries, through the Rs103bn IPO of SBI Card and Payment Services and a Rs15bn offer for sale in SBI Life Insurance.
HSBC’s global connections and knowledge of the Indian market earned it a role as one of three bookrunners on the trophy deal of the year. UK-based GlaxoSmithKline’s sale of a Rs254bn (US$3.46bn) stake in consumer major Hindustan Unilever in May was India’s largest-ever overnight block trade and reopened the market after the Covid-19 shock.
When the lockdown restrictions were eased in August, HSBC was confident enough to launch a qualified institutional placement (Rs11bn) and overnight block (Rs8.3bn) in mall operator Phoenix Mills.
HSBC also timed the Axis Bank QIP well. The repeat client raised Rs100bn from a fully upsized offering in August, moving ahead of ICICI Bank and Housing Development Finance Corp in raising funds from the market.
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