SBI Capital Markets, the investment banking unit of the country’s top lender, State Bank of India, has a pipeline of 20 equity issues that it will be managing over the next 3-4 months, its CEO said.
“SBI Caps was a little quiet last year as the equity market was not very active. Now that we are seeing a potential in the market, we are fully geared up for that and we have a big pipeline ahead of us,” said S. Vishvanathan, managing director and chief executive.
He estimated there could be issuances worth $22.5 billion (Rs 1-lakh crore) in the Indian market in 2010. In 2009, Indian firms raised about $19 billion in new equity.
“We have about 20 issues which are going to come up in next 3-4 months,” he said.
In 2009, SBI Caps handled five major equity issues that raised $3.1 billion (Rs 13,650 crore). This included issues state-owned NHPC and Adani Power. SBI Caps is one of the managers to Standard Chartered’s India listing and Jindal Power’s initial share sale.
Vishvanathan said SBI Caps had hired about 100 people in the last 3-4 months, boosting the total tally to about 600.
The investment bank is also aiming to play a larger role in mergers and acquisitions in 2010 as it intends to leverage its parent’s banking relationship with Indian corporates.