MOSL: Morning India (13/December/17): 1. India Strategy; 2. EcoScope; 3. Hindustan Unilever; 4. Havells India; 5. Metals Weekly

​MOrning India (13/December/17): 1. India Strategy; 2. EcoScope; 3. Hindustan Unilever; 4. Havells India; 5. Metals Weekly

Today’s top research theme

India Strategy: A blockbuster year of equity issuance; BFSI accounts for the lion’s share in fund raising

• It has been a spectacular year for the Indian IPO market, with equity issuances across categories increasing ~2.5x over the previous year.
  
• The last 24 months have seen IPOs of companies from several new sectors, such as Life Insurance, General Insurance, AMCs, New-age banks, Staffing and Retailing. 72% of funds raised via new offerings were accounted by just 13 Insurance and NBFC companies (INR501b).
  
• Contribution of the new listings (via IPOs) to Indian market cap is at a seven-year high of 3%.
  
• In FY18 YTD, IPOs on aggregate were oversubscribed 13x, raising INR9,106b v/s the offer size of INR700b.
  
• QIPs, after two muted years, have shown signs of revival, with capital raised via 28 QIPs reaching a new high of INR407b (205% higher than FY17) so far this year.
  
• Offers for Sale (OFS) saw a significant increase to INR162b in FY18YTD from INR78b last year. This was primarily accounted for by the government's divestment at INR128b (~80% of overall amount).
  

Piping hot news

RIL said to plan Reliance Jio IPO after $31 billion spending spree

• Reliance Industries Ltd (RIL) chairman Mukesh Ambani is weighing an initial public offering (IPO) of mobile operator Reliance Jio Infocomm Ltd, people with knowledge of the matter said, after a $31 billion investment spree that roiled the country’s telecom market. Reliance Industries Ltd, the conglomerate backed by tycoon Mukesh Ambani, is holding internal discussions about preparing to list Reliance Jio as soon as late 2018 or early 2019, according to the people.