India ECM: what the market wants

Author: Ashley Lee | Published: 4 Feb 2015

The election of Prime Minister Narendra Modi last May seems to have resolved market participants’ biggest concern: regulatory certainty. But more needs to be done to boost its equity capital markets.

In India most companies rely on equity capital markets to raise funds. Following the election, issuers flooded the market with qualified institutional placements (QIPs).

Deals have since slowed. That’s because IPOs take about six months from the decision to list to the actual listing, but others are waiting for clarity on regulatory matters.

Some concerns arose more than others. Here are the top four issues highlighted by speakers at the IFLR India Capital Markets Forum in Mumbai last week.

KEY TAKEAWAYS

More deals are expected as regulatory certainty in India improves, but some changes are still needed;Clarity is needed for sponsor-backed IPOs, which may not include a traditional promoter;The market is waiting to how the Reit and business...