Having started investment banking activities in India in 2013, BESI is currently the equity capital markets leader in the country (see table above). Working with a team of 12 Research analyst’s, the Bank believes that its mid-cap focused strategy and coverage capacity are yielding significant results.
BESI successfully completed the Bookbuilding and allocation of the Institutional Placement Programme (IPP) of equity shares of Muthoot Finance Ltd., an Indian company. The deal, completed in April 2014, was the first capital markets transaction carried out by the Bank in India, one year after initiating investment banking activities in the country, through its subsidiary Espírito Santo Securities India.
The transaction, which raised Rs 4,813 (US$ 68.5 million), took place at a volatile time for the Indian capital market due to a climate of political and economic uncertainty in the run-up to the general elections. Despite this scenario, the issue was a success: demand largely outstripped the size of the offer and the final price was fixed at the upper end of the price band. BESI was the only foreign Book Running Lead Manager to take part in the transaction.
Muthoot Finance, Ltd. holds the largest portfolio of gold loans (loans using gold jewellery as collateral) in India, with a loan book of ca. US$ 3,765 million. It operates through a network of 4,260 branches and has a stock market capitalisation in excess of US$ 1 billion. Muthoot Finance is listed on the National Stock Exchange of India and the Bombay Stock Exchange.
More recently (on May 29th), the Qualified Institutional Placement (QIP) of SKS Microfinance shares was also concluded in India. With a loan book of US$ 473 million, SKS Microfinance is one of the largest microfinance providers, and the only one listed, in India. BESI acted as Book Running Lead Manager of the US$ 67.7 million transaction, which was oversubscribed multiple times. BESI played a key role in placing the issue, having canvassed the largest number of investors to take part in the transaction.
These issues have shown the capacity of BESI’s Indian subsidiary and its global emerging markets platform to propel the Bank to 1st place in the ranking of equities financial advisers in the Indian capital market since the start of the fiscal year up to the present date (29/05/2014), according to Bloomberg, with a total aggregate amount of transactions of US$ 150 million.
Espírito Santo Securities India’s team of 37 professionals provides Advisory Services in Mergers and Acquisitions, Capital Markets, Research and Brokerage. Since it obtained a brokerage license two years ago, BESI has been striving to develop a benchmark franchise to serve its institutional Clients, namely through its outstanding Research.