MUMBAI: Wall Street banks dominated the mergers and acquisition advisory league table in 2017, with Morgan Stanley topping the list while domestic heavyweights JM Financial and Arpwood Capital gained top place in terms of advisory fee collection as acquisition spree of foreign investors pushed inbound M&As to a record high last year.
Kotak Mahindra Bank ranked in top positions of both M&A and ECM tables while Axis Bank was the other Indian bank that found a place among the top five of the investment banking deal table in 2017. Equity capital issuances also hit a record high, up 208% during the year, as a liquidity-driven rally pushed Indian stock markets to record highs, according to data compiled by Thompson Reuters and Bloomberg.
The $23-billion merger between Idea Cellular and Vodafone India was the bumper deal for bankers, helping Morgan Stanley, Bank of America-Merrill Lynch and Kotak to lead the M&A league table.
Morgan Stanley topped M&A advisory league table of both Thomson Reuters and Bloomberg while Merrill Lynch and Goldman Sachs grabbed places in top five among both the tables.
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Other than Idea-Vodafone, Morgan Stanley was also involved in DLF’s $1.9 billion deal to sell 40% in rental arm unit to GIC Singapore and the $2.4-billion merger between Bharat Financial Inclusion and IndusInd Bank.
Banking on the $12.5 billion acquisition of Essar Oil’s assets by Roseneft, JM Financial and Arpwood Capital made into the top positions of bankers, by gaining the maximum amount of fees.
Inbound M&A activity hit a record high of $31.7 billion, up 15% in value compared to 2016.
But outbound M&A activity slowed 73.5% to $2.6 billion from 2016, the lowest annual period since 2014. This brought the total cross-border M&A activity to $34.3 billion, down 8.1% in value compared to 2016. Domestic M&A activity stood at $25.4 billion, down 0.5% in value from over a year ago, despite the 18.6% increase in the number of announced domestic deals from the same period last year.
2017 has been a stellar year for India’s equity capital markets, with ECM proceeds reaching the highest annual period in a decade.
2017 was bumper year for initial public offerings (IPO), with at least 180 companies raising $11.1 billion, surpassing the record high in 2007 ($8.6 billion).
Four big-ticket IPOs hit the market with the largest coming from General Insurance Corp’s $1.45 billion IPO in October.