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CHAPTER- IV

PERFROMANCE EVALUATION OF MERCHANT BANKERS (MANAGEMENT OF PUBLIC ISSUES)

The focus of this chapter is on the role played by merchant bankers in the

primary capital market in India both in public issues and right issues. It is mandatory

under SEBI rules that every issuing company must appoint one or more SEBI

registered merchant bankers as lead manager(s) for the management of issue.

Merchant bankers play an important role as one of the intermediaries in the primary

capital in India. They help companies in the total management of issue of securities.

Therefore, they are called ‘Issue Managers’ (Lead Managers). They undertake all

activities related to capital issues and play different roles as lead managers, co-

managers, underwriters, consultants and advisors to the issue. They also perform the

duties as portfolio managers.

In the case of book building process, the issuer appoints SEBI registered

merchant bankers as book runner(s) and the lead merchant banker acts as the lead

book runner and other eligible merchant bankers appointed by the issuer and lead

managers are termed as co-book runners. The book runners and other intermediaries

associated with the book building process maintain records of the book building

process but primary responsibility of maintaining proper books is that of lead book

runner.

As an advisor to the issue, merchant bankers advise the company on the

matters relating to the quantum of the issue, timing of the issue, pricing of the issue,

structuring of capital and debt, marketing strategy of the issue and the selection of

other intermediaries to assist in the process of raising funds.

Regulation 19 of SEBI (Merchant Bankers) Regulations, 1992, as modified

from time to time, places restrictions on the appointment of lead managers. The

number of lead merchant bankers may not exceed the following:-

Size of Public issues (Rs. In crores) No. of Merchant bankers Less than Rs. 50 crores Two Rs 50 crore but less than Rs. 100 crore Three Rs 100 crore but less than Rs 200 crore Four Rs 200 crore but less than Rs. 400 crore Five Rs 400 crores and above Five or more as may be agreed by the

SEBI

72

However, the limit to the maximum number of lead managers to be appointed

in a single issue was omitted through amendment in this regulation as on April 19,

2006.

Further, clause 20 (1) of the above Regulations requires that where there are

more than one lead managers/ lead merchant bankers to the issue, the responsibility of

each of such merchant banker shall be clearly demarcated and a statement clearly

defining such responsibilities shall be furnished to SEBI at least one month before the

opening of the issue for subscription. So, it is in the interest of the issuing company to

obtain from the lead merchant banker a statement of allocation of duties/

responsibilities which shall be discharged by different merchant bankers.

This chapter evaluates the merchant bankers on the basis of their activities

performed in managing capital issues as book runner lead managers/ lead managers,

co-lead managers and advisors to the issues in public issues as well as rights issues

separately. The performance of merchant bankers has been evaluated in terms of

number of issues handled, amount raised, percentage of amount raised through

individual merchant bankers to the total amount in a particular year over the period of

study.

4.1 Management of Public issues Consequent upon MS Shoes scandal and CRB fiasco, SEBI took a number of

measures in 1997-98 relating to primary market with the objective of safeguarding

and stimulating investors’ interest in capital issues. SEBI (Merchant Bankers)

Regulations, 1992 was amended on December 9, 1997 to streamline and strengthen

the role of SEBI to impart more transparency to merchant banking activities in India.

The amended Regulations abolished different categories of merchant bankers to one

and segregated fund based and fee based activities of merchant bankers. Merchant

bankers were prohibited from carrying on any fund based activity, such as acceptance

of deposits, leasing and discounting of bills. A number of stringent entry barriers were

imposed by SEBI to punish fly-by- night operators in the primary capital market. As a

result of this, there was a sharp decline in the number of different categories of

merchant bankers registered with SEBI and in the number of public issues since 1997-

98. The number of merchant bankers registered with SEBI during the period under

review has been shown in table 4.1

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Table 4.1

Number of Merchant Bankers Registered with SEBI

Years Number

1997 – 98 802

1998 – 99 415

1999-00 186

2000-01 233

2001-02 145

2002-03 124

2003-04 123

2004-05 128

2005-06 130

2006-07 152

2007-08 155

2008-09 137

Source: - SEBI Annual Reports, 1997-98 to 2008-09.

For the purpose of analysis and evaluation of performance of merchant banks

in public issues and right issues, the merchant banks which acted as lead manager(s)

have been considered. The lead manager/BRLM is the manager to the issue, who is

responsible for furnishing ‘Due Diligence Certificate’ to SEBI in accordance with

SEBI (Merchant Bankers) Regulations,1992 and also performs mainly pre issue

obligations as lead manager.

Analysis of data has revealed that generally a single merchant banker has been

appointed as lead manager to the issue. In case of multiple merchant banks in a single

issue, one of the merchant bankers has acted as lead manager/BRLM to the issue.

However, in some large sized issues, more than one merchant bankers have been

appointed as lead managers who have been jointly made responsible for furnishing

due diligence certificate to SEBI. They also performed pre issue obligations jointly. In

order to calculate the number and amount of issues managed by individual merchant

banks, the amount of issues having multiple lead managers were apportioned equally

to all lead managers and the number of that particular issue was assigned to the first

lead manager in the list of such issues. Other merchant banks, which performed the

74

role of co-lead manager/ co-manager and the advisors to the issues have been

separately dealt with in the present study

4.1.1 Public Issues and Number of Merchant Banks Involved The number of public issues floated by joint stock companies together with

amount raised and the number of merchant banks involved in the management of

public issues for the period from 1997-98 to 2008-09 has been presented in the table

4.2.

A glance at the table 4.2 shows that a total of 685 public issues have been

floated by companies which mobilized funds to the tune of Rs.1,90,515.19 crore. The

largest number of 124 public issues were floated in the year 2000-01 followed by 102

issues in 2005-06 and 91 issues during 2007-08. It has been revealed in the table that

primary capital market remained subdued during the year 2001-02, 2002-03 and

2008-09 with respect to both number and amount of public issues. Year 2007-08 saw

maximum amount of funds mobilised at Rs. 53,219 crore followed by Rs. 25,526.41

crore raised in 2004-05. The minimum amount of funds raised was in 1997-98, when

Indian companies could raise Rs. 3061.22 crore only.

Table 4.2

Merchant Banks Involved in Public Issues Floated by Joint Stock Companies

Years

Total Issues

Floated

Total

Amount (Rs. Crore)

Average

Issue Size (Rs.

Crore)

Merchant Banks Involved

As Lead Managers/

BRLM

As Co- Lead Managers/

Co- Managers Managers/ Advisors

Total Merchant

Banks Involved

1997-98 62 3,061.22 49.37 41 23 64 1998-99 32 7,910.74 247.21 14 28 42 1999-00 65 7,673.14 118.04 21 37 58 2000-01 124 6,622.90 53.41 34 29 63 2001-02 19 6,422.57 338.00 6 18 24 2002-03 14 5,731.57 409.39 6 18 24 2003-04 35 22,144.57 632.70 15 11 26 2004-05 34 25,526.41 750.77 20 20 40 2005-06 102 23,675.70 232.11 39 2 41 2006-07 85 24,993.37 294.04 37 9 46 2007-08 91 53,219.00 584.82 37 4 41 2008-09 22 3,534.00 160.64 18 8 26

Total 685 1,90,515.19 322.34 288 207 - Source: - Compiled from offer documents, SEBI website and Prime Directories of

relevant years.

75

After the introduction of SEBI (Merchant Bankers) Amendments Regulations,

1997, the number of merchant banks has declined and only the qualified and

professional bodies have remained in the field. This is evident from the table as well.

In the initial four years period of the study, the number of merchant banks involved

in primary capital market activities was higher than the number, although the

resources mobilization was much higher in the latter years.

4.2 Merchant Banks as Lead Managers to Public Issues of Equity

4.2.1 Public Equity Issues Management by Indian and Foreign Merchant Banks

Total merchant banks involved in the management of public issues of equity

and deferred equity has been classified into Indian and foreign merchant banks. Table

4.3, Chart 4.1 and 4.2 present the year wise number of issues and the amount of equity

issues handled by Indian merchant banks and foreign merchant banks operating in

India. As revealed by the table, out of 618 equity issues floated during the period

under review, as many as 544 were handled by Indian merchant banks while foreign

merchant banks were the lead managers to 72 equity issues. However, 544 issuer

mobilized an aggregate amount of Rs. 78,840.63 crore (52.08%) crore through Indian

merchant banks and the amount of equity issues managed by foreign merchant banks

were of Rs. 72,549.70 crore (47.92%). A glance at the average issue size of both

categories of merchant banks depicts the higher average issue size in case of foreign

merchant banks in all years except 1997-98. It shows the involvement of foreign

merchant banks in the management of comparatively large sized issues. The aggregate

average issue size of foreign merchant banks was 798.77 crore while it was only

145.19 crore in case of Indian merchant banks.

76

Table 4.3

Public Equity Issue Management by Indian andForeign Merchant Banks

( Rs. in Crores)

Year

Indian Merchant Banks Foreign Merchant Banks Total No. of Issues

Amount Rs.

Average Amount

Rs.

No. of Issues

Amount Rs.

Average Amount

Rs.

No. of Issues

Amount Rs.

Average Rs.

1997-98 53 1122.03 (99.10)

21.17 03 9.97 (0.9)

3.32 58 1132 19.52

1998-99 20 407.82 (80.92)

20.39 02 96.2 (19.08)

48.1 22 504.02 22.91

1999-00 46 1954.41 (65.69)

42.48 09 1020.84 (34.31)

113.43 55 2975.25 54.1

2000-01 105 1930.71 (77.73)

18.36 10 553.05 (22.27)

55.3 115 2483.76 21.6

2001-02 05 247.98 (22.92)

49.60 01 834.02 (77.08)

834.02 06 1082 180.33

2002-03 05 828.71 (79.8)

165.74 01 209.97 (20.20)

209.97 06 1038.68 173.11

2003-04 23 8588.84 (48.20)

373.40 06 9232.16 (51.80)

1538.69 29 17821 614.51

2004-05 24 10532.28 (49.15)

438.84 05 10899.3 (50.85)

2179.85 29 21431.56 739.02

2005-06 93 13135.22 (55.48)

141.24 09 10540.5 (44.52)

1171.16 102 23675.7 232.11

2006-07 72 11261.73 (45.06)

156.41 13 13731.6 (54.94)

1056.28 85 24993.37 294.03

2007-08 77 27,004.56 (51.71)

350.71 13 25,214.44 (48.29)

1939.57 90 52,219 580.11

2008-09 21 1826.34 (89.80)

86.87 - 207.66 (10.20)

207.66 21 2034 96.86

Total 544 78840.63 (52.08)

145.19 72 72549.7 (47.92)

798.77 618 1,51,390.34 244.97

Note: - Figures in parentheses show percentage of total amount mobilised through public issues.

Source: -Compiled from offer documents of Companies, SEBI Website and Prime Directories of relevant years.

Percentage share of foreign and Indian merchant banks in the management of

public issue of equity and year wise amount managed has also been shown in the

following charts

77

Chart – 4.1

Chart 4.2

Further, the Indian merchant banks have the significant higher proportion of

total equity amount managed form 1997-98 to 2002-03 with the exception of 2001-02,

when one foreign merchant bank was able to manage a single issue of Rs. 834.02

crore. From the year 2003-04 onward, both types of merchant banks were able to

manage almost equal proportion of total resource mobilised through equity and

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deferred equity issues. On the other hand, the foreign merchant bankers were almost

absent in the issue management activities of equity issues in 2008-09. Only one

foreign merchant banker joined Indian merchant bankers for one public issue

management.

The analysis of the table leads to the conclusion that issuer companies with

large issue size relied more on foreign merchant banks than on Indian merchant

banking companies. This was because of the vast international network of foreign

originated merchant banks as compared to Indian merchant banks.

4.2.2 Year wise Number of Equity Public Issues Managed by Merchant Banks

All the merchant banks registered with SEBI have not been involved in the

activites of management of public issues. Even those merchant banks involved in

these activities, have not played an equal role as lead managers, co-lead managers

and advisors to the equity shares. Some lesser known merchant bankers were involved

in even single issue in a year while some others were the managers for more than ten

public equity issues also.

Table 4.4 reveals the year wise number of merchant banks who acted as lead

managers/co-lead manager/advisors to different number of public equity issues. It has

been depicted in the table that total merchant banks 404 involved in the management

of equity issues during the period under review.

Of the total merchant banks involved, 227 (56.2%) lead merchant banks

managed 1-2 issues only in a year while 48 (11.9%) handled more than ten public

issues of equity share. However, majority of the merchant banks have handled less

than four public issues. In 1997-98, out of 65 merchant banks involved as managers to

the public issues, as many as 52 (80%) handled one or two issues only. Similarly 23

(57.5%) merchant banks in 1999-2000 and 18 ( 62.1%) in 2004-05 managed only 1-2

issues. 52 (12.9%) secured the business of 3-4 equity issues during the period of

study. However, 8 (25.8%) lead managers managed more than ten equity issues in

2005-06, while three lead managers each were able to secure the confidence of more

than 10 issuer companies in 2006-07 and 2007-08.

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Table 4.4

Year wise Number of Equity Public Issues Managed by Merchant Banks

(Merchant Bankers as Lead Manager/ Co- Lead Managers/ Advisors)

Years 1-2 Issues

3 -4 Issues

5 – 6 Issues

7 – 8 Issues

9 – 10 Issues

Above 10

Issues

Total MBs

Involved 1997-98 52

(80.0) 05

(9.6) 05

(9.6) 02

(3.8) 01

(1.9) - 65

1998-99 14 (50.0)

06 (21.4)

- 01 (3.6)

02 (7.1)

05 (17.8)

28

1999-00 23 (57.5)

04 (10.0)

02 (5.0)

03 (7.5)

03 (7.5)

05 (12.5)

40

2000-01 27 (50.9)

10 (18.9)

03 (5.7)

01 (1.9)

04 (7.5)

08 (15.1)

53

2001-02 06 (35.3)

03 ((17.6)

- 01 (5.9)

01 (5.9)

06 (35.3)

17

2002-03 04 (26.7)

02 (13.3)

01 (6.7)

03 (20.0)

03 (20.0)

02 (13.3)

15

2003-04 09 (40.9)

03 (13.6)

02 (9.1)

02 (9.1)

02 (9.1)

04 (18.2)

22

2004-05 18 (62.1)

- 04 (13.8)

02 (6.9)

01 (3.4)

04 (13.8)

29

2005-06 13 (41.9)

04 (12.9)

02 (6.4)

01 (3.2)

03 (9.7)

08 (25.8)

31

2006-07 24 (57.1)

04 (9.5)

04 (9.5)

03 (7.2)

04 (9.5)

03 (7.2)

42

2007-08 17 (42.5)

10 (25.0)

05 (12.5)

03 (7.5)

02 (5.0)

03 (7.5)

40

2008-09 21 (91.4)

01 (4.3)

01 (4.3)

- - - 23

Total 227 (56.2)

52 (12.9)

29 (7.2)

22 (5.4)

26 (6.4)

48 (11.9)

404

Note: - Figures in parentheses show the percentage of total merchant bankers involved during the relevant year.

Source: - Compiled from offer documents issued by companies during the relevant years.

The declining number of merchant banks engaged in issue management

activities in the latter years of the study period shows that only efficient and

professional merchant banks have remained in this field.

4.2.3 Indian Merchant Banks as Lead Managers in Public Issues of Equity

The performance of individual Indian merchant banks on the basis of number

and amount of equity issues managed has been shown in Table 4.5 and Chart 4.3.

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It is revealed from the table that Indian merchant banks were able to manage a

total of 544 equity issues with an aggregate of Rs. 78,840.63 crore. This amount

constituted 52.08% of total amount mobilized through equity issues during the period

under study.

Kotak Mahindra Capital Co. Ltd managed a total of 30 equity issues which

mobilized Rs. 23,631.22 crore during the period from 1997-98 to 2008-09. On the

basis of amount of issues managed, Kotak Mahindra performed better than other

Indian merchant banks covered by the study. However, it was SBI Capital Markets

Ltd (SBI Caps.), which managed a maximum number of 43 equity issues during the

period under review. Enam Securities Ltd managed 11.15% of total funds mobilized

through equity with a total of 35 public issues during the same period.

It has been highlighted by the table that ICICI Securities Ltd remained the

preferred choice of 32 issuer companies with Rs.13,938.44 crore mobilization through

them. However, SBI Capital Markets handled the largest number of issues amounting

to Rs. 6,868.31 crore during the period of the study. Karvy Investor Services Ltd was

approached by 34 issuer companies and this mechant banker could manage Rs.

1,336.59 crore contributing 0.8% to the pool of resources mobilized during the period

under review. It remained active in public issue management services for six years

only.

It is depicted by the table that IDBI Ltd. and IDBI Capital Markets managed

only 12 public equity issues which mobilized funds amounting to Rs. 818.06 crore,

whereas Keynote Corporate Services managed 26 equity issues which involved

minimum funds amounting to Rs. 792.80 crore. IL&FS Investsmart showed their

presence in the latter part of the study period and managed 14 equity issues with an

aggregate amount of Rs. 1733.74 crore (1.14%).

On the basis of average issue size of equity managed by Indian merchant

banks, Kotak Mahindra Capital Co. managed largest sized issues with an average size

of Rs. 787.71 crore. On the other hand, Keynote Corporate Services managed

minimum sized issues with average size of Rs. 30.49 crore only during the period

under study. This merchant banker was found active in the latter part of the period

under review.

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82

83

84

A number of tiny equity issues have been managed by many small merchant

banks, included in other merchant banks category. The number of such issues stood at

275 involving an amount of Rs. 10,021.56 crore during the period of twelve years.

The table further reveals that the top lead merchant bankers were generally absent in

2008-09 because of depressed market conditions.

Kotak Mahindra Capital Co. was again on the top of the list with the

management of 15.61% resources mobilized through equity issuers by Indian

merchant banks. It was followed by Enam Securities and ICICI Securities Ltd. with

11.15% and 9.21% share respectively.

Chart 4.3

From the above analysis, it may be concluded that Kotak Mahindra Capital

Co. and Enam Securities Ltd. performed better than other Indian merchant banks on

the basis of total amount managed. However, on the basis of number of issues, SBI

Capital Markets performed better than other Indian merchant banks during the period

under study.

4.2.4 Foreign Merchant Banks as Lead Managers in Public Issues of Equity

Table 4.6 and Chart 4.4 depict the management of public issues of equity by

foreign merchant banks showing the number of issues handled and the amount of

funds managed by them during the period from 1997-98 to 2008-09.

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As it is clear from the table, JM Morgan Stanley managed the largest number

of 29 equity issues with an aggregate amount of Rs. 24,115.92 crore (15.92%). This

was followed by DSP Merrill Lynch with the management of Rs. 22,416.23 crore

(14.81%) through 24 equity issues. These two foreign merchant bankers showed their

presence in the activities of public issue management for nine out of twelve years.

HSBC Securities & Capital (India) Ltd and Citigroup Global Markets Ltd. which

entered in this field in latter years could manage Rs. 2027.56 crore (1.34%) and Rs.

5482.80 crore (3.62%) respectively.

On the basis of average issue size managed by foreign merchant banks, it was

again JM Morgan Stanley Ltd, which managed the larger sized issues with an overall

average of Rs. 831.58 crore per issue. However, its largest average issue size

managed in a particular year (2004-05) was Rs.1928.05 crore. On the other hand,

HSBC Securities and Capital (India) Ltd could manage the minimum sized issue with

an average issue size being Rs. 506.89 crore during the period under review. Thus, the

companies issuing a large amount of equity issues to public preferred foreign

merchant bankers as their lead managers. For example, TCS relied totally on foreign

merchant banks as BRLMs/ Lead Managers for their largest issue of Rs. 5420.49

crore in 2004-05. Jet airways (India) Ltd. appointed five foreign merchant banks as

lead managers out of total six for their equity issue of Rs. 1899.35 crore. Similarly,

ICICI Ltd preferred three foreign merchant banks as BRLMs for their equity issue of

Rs. 3245.80 crore.

An analysis of the table also shows the proportion of total equity funds

managed by different foreign merchant banks. JM Morgan Stanley, with a market

share of 15.92% of the managed funds was on the top, while the minimum share

(1.34%) was that of HSBC Securities & Capital (India). DSP Merrill Lynch showed

their presence by managing 14.81% of the total funds raised through equity issues

during the period of the study.

86

87

88

The following chart also depicts an overview of foreign merchant bankers’

participation in equity shares issued by joint stock companies to the public.

Chart – 4.4

On the basis of total amount of equity managed by all merchant bankers, it is visible from table No. 4.5 and 4.6 that JM Morgan Stanley has the largest share with Rs. 24115.92 crore. This amount accounted for 15.92% of the total funds mobilized through equity. This was followed by Kotak Mahindra Capital Co. Ltd. and DSP Merrill Lynch with an aggregate amount of Rs. 23,631.22 crore (15.61%) and Rs.22,416.23 crore (14.81%) respectively. However. the maximum number of 43 issuer companies preferred SBI Capital Markets as their lead manager. It was followed by Enam Securities Ltd. with 35 equity issues and Karvy Investors Services Ltd. with 34 public issues of equity shares.

4.2.5 Lead Managers to the Largest Equity Issues Table 4.7 gives the list of the largest equity issues during the period of study along with their lead managers. As depicted in the table, Indian merchant banks, which include Kotak Mahindra Capital Co. Ltd and ICICI Securities Ltd were the sole lead managers for three years. On the other hand, foreign merchant banks operating in India were exclusively the lead managers to five largest issues out of total twelve issues during the same period.

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Table 4.7 Lead Mangers to the Largest Equity Issues

Year Issuer Issue Size (Rs in crores)

Total MBs involved

Lead Manager(s)/ BRLM(s) Co -BRLMs/ Lead Managers

1997-98 Corporation Bank 304.00 (26.85)

06 ICICI Securities IDBI Bank, Kotak Mah., SBI Caps., JP Morgan, DSP Merrill

1998-99 UTI Bank Ltd. 73.50 (14.58)

04 DSP Merrill Lynch IDBI Bank, Kotak Mah., SBI Caps

1999-00 HCL Technologies Ltd. 823.60 (27.66)

05 Kotak Mahindra Capital Co. ICICI Sec., JM Morgan,DSP Merrill, Anand Rathi, RR Financial

2000-01 Hughes Tele.Com(India) 749.21 (30.16)

04 Kotak Mahindra Capital Co. ICICI Sec., IDBI Capital Markets

2001-02 Bharti Televenture Ltd. 834.02 (77.0)

04 J M Morgan Stanley DSP Merrill Lynch

ABN Amro, ICICI Sec.

2002-03 Canara Bank 385.00 (37.06)

10 ICICI Securities Ltd, SBI Caps. , Kotak Mahindra, J M Morgan, DSP Merrill

BOB Capital, AK Capital, Centrum, Allainz sec., RR Financial

2003-04 ONGC Corporation Ltd. 10,542.40 (59.16)

03 Kotak Mahindra DSP Merrill, JM Morgan

-

2004-05 Tata Consultancy Services Ltd.

5420.49 (25.29)

07 J M Morgan, DSP Merrill, J P Morgan India Kotak Mah., SBI Caps, CLSA India

2005-06 ICICI Bank Ltd. 5750 (24.28)

05 DSP Merrill Lynch, J M Morgan Stanley ICICI Sec., Enam, Kotak Mah., Karvy Investors.

2006-07 Cairn India Ltd. 5788.79 (23.16)

07 DSP Merrill Lynch, ABN Amro Securities., J M Morgan Stanley

Citigroup, Kotak Mah., HSBC Sec., Enam Fin.

2007-08 Reliance Power Ltd. 10,123.20 (19.39%

10 Kotak Mahindra Capital Co. USB Securities( India), ABN Amro Securities , Deutsche Equities, Enam Securities, ICICI Securities, JM Financial, Consultants, JP Morgan

SBI Capital Markets Macquaries India

2008-09 KSK Energy Venture Ltd. 830.66 (40.83)

4 Kotak Mahindra Capital Co., IDFC- SSKI Pvt. Ltd., Edelweiss Securities.

AXIS Bank

Total 41,624.87 (27.49%)

70

Note: -Figures in parentheses show percentage of total amount mobilised through public issues of equity during the year. Source: -Compiled from offer documents of Companies, SEBI website.

90

The issuers with the largest issue of equity amount like Tata Consultancy Service

Ltd., ICICI Bank and Cairon India Ltd. relied only upon foreign merchant banks.

Equity issues of Canara Bank (2002-03), ONGC Corporation Ltd. (2003-04) and

Reliance Power Ltd. (2007-08) were managed jointly by Indian and foreign merchant

banks. Cairon India Ltd. for their issue of Rs. 5788.79 crore appointed DSP Merrill

Lynch and ABN Amro Securities as BRLMs and Global Coordinator for their issue

while JM Morgan was the Book Runner Lead Manager.

The table further shows the contribution and importance of each largest issue

in the total amount of resources raised through equity in the respective years. Total

equity amount raised through these twelve issues accounted for 27.49% of the total

funds mobilised through equity during the period of study. The lone equity issues of

UTI Bank, Bharti Televenture Ltd and ONGC Corporation Ltd contributed 73.5%,

77% and 59.16% to the pool of resources mobilized through equity in the year 1998-

99, 2001-02 and 2003-04 respectively.

4.2.6 Merchant Bankers as Co-Lead Managers/ Co-Managers in Equity Issues

As ‘manager to the issue’ the lead manager/BRLMs has overall responsibility

for the pre issue and post issue management obligations of public issues. However,

there is also a provision for appointment of co-lead managers, co-managers and

advisors to the public issues. In that case, merchant bankers play a supporting and

coordinating role to the lead managers in discharging their responsibilities.

In case more than one merchant banker is appointed by the issuer, Clause

20(1) of the SEBI (Merchant Bankers) Regulations 1992 requires the clear

demarcation of responsibilities of each such merchant banker. It further requires

submitting to SEBI, at least one month before the opening of the issue for

subscription, a statement clearly defining such responsibilities.

During the period of twelve years from 1997-98 to 2008-09, a large number

of issuer companies have appointed more than one merchant bankers in different

roles. The offer documents generally revealed the name of merchant banks along with

their role as lead manager/BRLM, co-lead manager or an advisor to the issue. In that

case, the offer documents of such companies carried a statement of ‘inter-se allocation

of responsibilities’ of lead managers.

Table 4.8 depicts the number of equity issues handled by single merchant

banker as well as the number of issues managed by multiple merchant beankers. In

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case of single merchant bank in an issue, the same merchant bank discharges all

obligations of the manager to an issue while, the co lead managers and co managers

assist and coordinate the lead manager/ BRLM in discharge of these responsibilities.

Table No. 4.8

Single and Multiple Merchant Bankers Involved in Equity Issues

(Amount in Rs. crore) Year Single MB as lead manager Multiple MBs as lead managers/

Co-Lead Managers/ Advisors Total

Issues Floated

Amount

Average Issue Size

Rs.

Issues Floated

Amount Rs.

Average Issue Size Rs.

Issues Amount Rs.

Average Issue Size Rs.

1997-98 28 70.00 (6.19)

2.50 30 1062.00 (93.81)

35.40 58 1,132.00 19.51

1998-99 11 114.00 (22.62)

10.39 11 390.02 (77.38)

35.45 22 504.02 22.91

1999-00 20 246.00 (8.83)

12.30 35 2,729.25 (91.17)

77.98 55 2,975.25 54.09

2000-01 62 509.00 (20.47)

8.21 53 1,974.76 (79.53)

37.26 115 2,483.76 23.65

2001-02 3 6.00 (0.56)

2.00 3 1,076.00 (99.44)

400.81 6 1,082.00 180.33

2002-03 1 11.00 (1.06)

11.00 5 1,027.68 (98.94)

205.54 6 1,038.68 173.11

2003-04 7 64.00 (0.36)

9.14 22 17,757.09 (99.64)

806.50 29 17,821.09 614.51

2004-05 7 237.00 (1.11)

33.86 22 21,194.56 (98.89)

963.39 29 21,431.56 739

2005-06 43 2,541.00 (10.73)

59.09 59 21,135.00 (89.27)

358.22 102 23,675.70 232.11

2006-07 33 2,357.00 (9.43)

71.42 52 22,636.37 (90.57)

435.32 85 24,993.37 294.04

2007-08 43 3,517.48 (6.74)

81.80 47 48,701.52 (93.26)

1036.20 90 52,219.00 580.21

2008-09 10 549.51 (27.0)

54.95 11 1,484.49 (73.0)

134.95 21 2,034.00 96.86

Total 268 10,221.99 (6.75)

38.14 350 1,41,168.44 (93.25)

403.34 618 1,51,390.34 244.97

Note: - Figures in parentheses show percentage of total amount mobilised through equity issues during the year.

Source: - Compiled from offer documents of issuing companies. It is observed from the table that out of total 618 public equity issues during

the period under study, 268 equity issues were managed by single lead managers,

while 350 issuer companies appointed more than one merchant banker for this

purpose. However, 93.25% of total amount was mobilized by issuers from the issues

having more than one merchant banker to the issue, while the amount mobilized

through equity issues having single lead manager was only 10,221.99 crore (6.75%).

92

The year wise figures showed that the percentage share of amount of equity

mobilised through single lead manager for the issue was 22.62%, 20.47% and 27%

in 1998-99, 2000-01 and 2008-09 respectively, while the proportion of amount

mobilized through multiple merchant bankers was higher than 90% in the remaining

period under review.

The average size of the equity issues in case of multiple merchant banks

managed issues has been Rs. 403.34 crore during the study period, while it was just

Rs. 38.14 crore for the equity issues handled by single merchant banks. The average

size of issues managed by multiple merchant banks has been higher than the issues

handled by individual merchant banks during all the years covered by the study.

From the analysis, it is clear that for small sized issues, a single merchant

bank has been appointed as lead manager and large sized equity issues has been

managed by multiple merchant banks. In case of multiple merchant banks, the

merchant banks were appointed in the role of lead manager(s)/BRLM(s), co lead

managers, co-managers and as advisors to the issue.

4.2.7 Merchant Banks as Advisors to Equity Issues Merchant bankers are also appointed by the issuer companies to advise in the

matters relating to the issue of shares to the public. In this role, merchant banker

assists and advises the issuer and the lead manager/BRLMs relating to the existing

capital structure, proposed capital structure, pricing of the issue, size of the issue,

timing of floatation of issue, market strategies of the issue and various other matters

relating thereto. However, it has been found that the role of merchant banker,

appointed as an advisor to the public issue has not been specified by the issuer in the

offer documents published by them.

Table 4.9 presents the picture of the number of issuers and the amount for

which merchant banks were appointed as issue advisors. Out of total 618 equity issues

floated by corporate bodies for an aggregate amount of Rs.1,51,390.34 crore during

the period under review, only 44 issuers preferred to appoint merchant banks as

advisors to their equity issues involving an amount of Rs. 17,204.77 crore. A total of

41 SEBI registered merchant bankers acted in the role of advisors to the equity issues

during the period under review. However, no merchant banker was appointed as

advisor to equity issues in 1998-99, 2001-02, 2003-04 and 2008-09.

93

Table 4.9

Merchant Banks as advisors to the Equity Issues

Year No. of

Issues

Amount

Rs. Crore

No. of Merchant

Banks as Advisors

1997-98 10 101.54 9

1998-99 - - -

1999-00 10 680.82 9

2000-01 9 1076.08 8

2001-02 - - -

2002-03 1 100 1

2003-04 - - -

2004-05 4 10471.62 4

2005-06 5 2268.84 5

2006-07 3 1972.89 3

2007-08 2 532.98 2

2008-09 - - -

Total 44 17,204.77 41

Source: - Compiled from offer documents

An analysis of offer document of the relevant period shows that BOB Capital

Markets Ltd. was the sole advisor to the equity issue of Allahabad Bank for Rs.

100.00 crore in 2002-03. Tata Financial Services Ltd. acted as advisor to the mega

public issue of their sister concern, Tata Consultancy Services Ltd in 2004-05. Punjab

National Bank appointed their subsidiary PNB Gilts Ltd in the same role for its public

issue of Rs. 3120.00 crore, while Jet Airways (India) Ltd had IDFC Ltd. as the

advisor to the public issue of Rs. 1899.35 crore.

In 2005-06, BOB Capital Market Ltd. was the advisor to the equity issue of

their holding company, Bank of Baroda for Rs 1633 crore. In all, BOB Capital

Markets Ltd. acted as advisor in four equity issues for an amount of Rs. 1900.94

crore. Merchant banking Division of Canara Bank was the advisor to four equity

issues of Rs. 257.55 crore. A real estate company, Parsvnath Developers Ltd.

appointed Fortune Financial Services Ltd. as advisor to their large sized IPO of Rs.

1089.80 crore in 2006-07.

94

On the other hand, three foreign merchant banks, viz. HSBC Capital Markets,

Prebon Yamane India Ltd. and Bank of America participated in public issue market

as advisors to single issue each. Collin & Stewart Inga Pvt. Ltd advised Future Capital

Holding Ltd. for their public issue of equity of Rs. 491.34 crore in 2007-08.

4.3 Management of Public Issues in Debt market Indian corporate debt market has been in existence since independence.

Earlier, public limited companies have been raising resources in small amounts

through different instruments of debt securities. However, public sector undertakings

(PSUs) also started issuing bonds in the financial year 1985-86. The economic reform

initiatives since 1992 have made drastic changes in the structure of corporate debt

market in India. During the initial years of the period under review, the corporate debt

issues have shown a noticeable rise due to falling interest rates, adequate availability

of funds and the bearish equity market in the country. The position regarding public

issue of debt during the period under review have been presented in the following

table:

Table 4.10

Public Issue of Debt Capital (Amount in Rs. Crores)

Year Debt Issues by ICICI Ltd.

Debt issue by IDBI Ltd.

By Others Issuers

Total

No. Amount Rs.

No. Amount Rs.

No. Amount Rs.

No. Amount Rs.

1997-98 2 919.51 1 984.86 1 25.00 4 1,929.37

1998-99 7 3,064.35 3 4,342.37 10 7,406.72

1999-00 7 2,574.89 2 2,073.00 1 50.00 10 4,697.89

2000-01 7 2,978.09 2 1,161.05 9 4,139.14

2001-02 9 4,017.61 3 972.91 1 350.17 13 5,340.69

2002-03 3 2,342.63 5 2,350.26 - - 8 4,692.89

2003-04 3 1,352.12 3 2,971.46 - - 6 4,323.58

2004-05 3 1,627.42 2 2,467.43 - - 5 4,094.85

2005-06 - - - - - - - -

2006-07 - - - - - - - -

2007-08 1 1,000.00 - - - - 1 1,000.00

2008-09 - - - - 1 1,500.00 1 1,500.00

Total 42 19,876.62 21 17,323.34 4 19,25.17 67 39,125.13

Source: Compiled from offer documents of issuer comopanies.

95

As is shown in the table, the public debt issue market during the period of

study was dominated by two domestic Financial Institutions, viz., ICICI Ltd. and

IDBI Ltd. ICICI Ltd. had 42 debt issues of safety bonds of various types for an

aggregate amount of Rs. 19,876.62 crore during the period from 1997-98 to 2007-08.

IDBI Ltd raised an aggregate amount of Rs. 17323.34 crore through 21 debt issues to

public during the same period. Actually, the issue of bonds by these two issuers was

made through various tranches. All the tranches of bond issues were with ‘green shoe

option’ to the extent of double the amount of issue. Nearly all the debt issues were

oversubscribed, in some cases more than double the amount of issue and the entire

amount subscribed were retained by the issuers. The largest amount of Rs. 7,406.72

crore was raised in 1998-99 through ten debt issues, while the year 2007-08 and 2008-

09 saw single debt issue each. Tata Capital Ltd. raised Rs. 1500 crore in 2008-09

through non convertibel debentures. On the other hand, no corporate debt issue was

made to the public in the year 2005-06 and 2006-07 due to the buoyant equity market

during this period.

4.3.1 Merchant Banks as Lead Managers to Debt Issues A number of lead managers and co-managers were appointed by both ICICI

Ltd and IDBI Ltd. for their debt issues to public. However, a single merchant bank

was made responsible as lead manager to furnish ‘Due Diligence Certificate’ to SEBI

as per the provision of SEBI (Merchant Bankers) Regulation, 1992.

As stated in the table 4.11, SBI Capital Markets Ltd. managed an aggregate of

Rs. 17,723.55 crore through 23 public issues of bonds by IDBI Ltd. during the period

under review. JM Morgan Stanley was the preferred choice of ICICI Ltd for its 33

issues of Safety Bonds for an aggregate amount of Rs. 14,554.45 crore during the six

years of period of study.

96

Table 4.11 Merchant Banks as Lead Managers in of Debt Issues

(Amount in Rs. Crore)

Year

Merchant Banks SBI Capital Markets J M Morgan DSP Merrill Lynch IL&FS Investsmart ICICI Securities Total Debt Amount Raised

No. of Issues Amount

Average amount

Rs. No. of Issues

Amount Rs.

Average amount

Rs.

No. of

Issues Amount

Rs. Average amount

Rs. No. of Issues

Amount Rs.

Average amount

Rs.

No. of

Issues Amount

Rs. Average amount

Rs. No. of Issues

Amount Rs.

Average amount

Rs. 1997-98 1 984.70

(51.04) 984.7 2 919.52 (47.65) 459.76 - - - 1 25.00

(1.29) 25.00 - - - 4 1,929.22 482.3

1998-99 3 4,342.37 (58.63) 1,447.46 7 3.064.34

(41.37) 437.76 - - - - - - - - - 10 7,406.72 740.67

1999-00 3 2,123.00 (45.20) 707.67 7 2.574.89

(54.80) 367.84 - - - - - - - - - 10 4,697.89 469.79

2000-01 2 1,161.05 (28.05) 580.525 7 2.978.09

(71.95) 425.44 - - - - - - - - - 9 4,139.14 459.90

2001-02 4 1,323.08 (24.78) 330.77 9 4.017.61

(75.22) 446.4 - - - - - - - - - 13 5,340.69 410.81

2002-03 5 2,350.26 (50.08) 470.05 - - - 3 2,342.63

(49.92) 780.87 - - - - - - 8 4,692.89 586.61

2003-04 3 2,971.46 (68.72) 990.48 - - - 3 1,352.12

(31.28) 450.70 - - - - - - 6 4,323.58 720.60

2004-05 2 2,467.63 (60.25) 1.233.87 - - - 3 1,627.42

(39.75) 542.47 - - - - - - 5 4,095.05 818.97

2005-06 - - - - - - - - - - - - - - - - 2006-07 - - - - - - - - - - - - - - - - - -

2007-08 - - - 1 1,000.00 (100) 1,000.00 - - - - - - - - - 1 1,000.00 1,000.00

2008-09 - - - - - - - - - - - - 1 1,500.00 (100) 1,500.00 1 1,500.00 1,500.00

Total 23 17,723.55 (45.30) 770.56 33 14554.45

(37.20) 441.04 9 5,322.17 (13.60) 591.35 1 25 25 1 1,500.00

(3.83) 1500 67 39,125.18 583.96

Note: - Figures in parentheses show percentage of total amount mobilised through public issues of Debt during the year. Source: - Compiled from Offer Documents of Companies, SEBI Website.

97

However, ICICI Ltd. appointed DSP Merrill Lynch Ltd. as their chief lead

manager for the last three years. DSP Merrill Lynch Ltd.’s share in the management

of debt issues for three years was found to be Rs. 5,322.17 crore which came through

9 debt issues of ICICI Bank Ltd. In the year 2003-04, DSP Merrill Lynch Ltd. was

joined by Enam Securities Ltd. for the management of three debt issues of ICICI

Bank Ltd. On the other hand, IL& FS Investsmart was the lone lead manager for

debenture issue of Rs. 25.00 crore by Noida Toll Bridge Co. Ltd. Similarly, ICICI

Securities Ltd along with Citigroup Global Markets and DSP Merrill Lynch was the

lead managers for the debt issue of Rs. 1,500 crore by Tata Capital Ltd. in 2008-09.

Overall, SBI Capital Markets Ltd. has been the leader in the management of

debt issues to public with its share at 45.30% of the total fund mobilised. This was

followed by two foreign merchant bankers, viz, JM Morgan Stanley Ltd. and DSP

Merrill Lynch Ltd. with their share standing at 37.20% and 13.60 % respectively of

total funds raised through debt issues.

4.3.2 Merchant Banks as Co-lead Managers/ Co-managers in debt issues

A large number of merchant bankers was appointed to participate in the

management of public issues of debt during the period under review. Co-lead

managers, co-managers in debt issues facilitate tie up with the banks, financial

institutions and potential investors. They constantly update the list of potential

investors. They also subscribe, hold and help in selling debt instruments.

Table 4.12 reveals the list of merchant banks who participated in the

management of debt issues as co-lead managers during the period under review.

Reputed merchant banks like JM Morgan, DSP Merrill, Kotak Mahindra, SBI Caps,

Karvy Investor Services Ltd. and Enam Securities not only managed public issues of

debt and equity as lead managers, but also participated as co- lead managers nearly in

all debt issues.

An analysis of offer documents of issuer companies reveals that merchant

bankers like RR Financial Consultants Ltd, LLoyds Capital Management Ltd, Bajaj

Capital Ltd, Sobhagya Capital Option Ltd., Integrated Enterprises Ltd., have their

expertise in the management of debt issuers only as co-lead managers.

98

Table 4.12

Merchant Bankers as Co-Lead Managers/ Joint Lead Managers in Debt Issues (figures in Rs. Crores)

Year Total

Amount Mobilised

Merchant Banks

JM Morgan DSP Merrill Enam Securities Kotak Mahindra SBI Caps R R Financial KJMC Global Bajaj Capital

Issues Amount Issues Amount Issues Amount Issues Amount Issues Amount Issues Amount Issues Amount Issues Amount

1997-98 1,929.22 01 984.86 03 1,904.37 03 1,904.37 04 1,929.37 03 944.51 03 1,904.37 - - - -

1998-99 7,406.72 03 4,342.37 10 7,406.72 10 7,406.72 10 7,406.72 07 3,064.34 10 7,406.72 03 4,342.37 - -

1999-00 4,697.89 04 1,633.54 10 4,697.89 09 4,647.89 10 4,697.89 07 2,574.89 09 4,647.89 02 2,073.00 03 1,527.51

2000-01 4,139.14 - - 09 4,139.14 09 4,139.14 09 4,139.14 07 2,978.09 09 4,139.14 02 1,161.05 09 4,139.14

2001-02 5,340.69 04 1,323.08 09 4,017.61 12 4,990.52 13 5,340.69 - - 07 3,596.02 03 972.91 12 4,990.52

2002-03 4,692.89 08 4,693.52 05 2,350.46 05 2,350.46 05 2,350.46 02 2,343.06 08 4,693.52 08 4,693.52 08 4,693.52

2003-04 4,323.58 06 4,323.58 03 2971.46 06 4,323.58 03 2,971.46 - - 06 4,323.58 06 4,323.58 06 4,323.58

2004-05 4,095.05 05 4,094.85 02 2,467.43 02 2,467.43 02 2,467.43 - - 05 4,094.85 05 4,094.85 05 4,094.85

2005-06 - - - - - - - - - - - - - - - - -

2006-07 - - - - - - - - - - - - - - - - -

2007-08 1,000.00 - - 01 1,000.00 01 1,000.00 - - - - - - - - 01 1,000.00

2008-09 1,500.00 - - 01 1,500.00 - - - - - - - - - - - -

Total 39,125.18 31 21,395.80 53 32,455.08 57 33,230.11 56 31,303.16 26 11,904.89 57 34,806.09 29 21,661.28 44 24,769.12

Source: - Compiled from offer documents of issuer companies for relevant years

99

In addition to this, both debt issuers i.e. ICICI Ltd. and IDBI Ltd. also

appointed a number of merchant banks as co-lead managers to the issues. Among the

co-managers to debt issues, GSFS Capital & Securities Ltd. participated in total of 42

debt issues, Integrated Enterprises Ltd. in 40 issues, Karvy Investors Services Ltd. in

39 debt issues, Sobhagya Capital Option Ltd. in 23 issues and AK Capital Services

and Allianz Securities Ltd in 12 issues each. Other merchant bankers who participated

in debt issues as co-managers included Bajaj Capital Ltd., United Bank of India,

Centrum Finance Ltd. and UTI Securities Ltd.

4.3.3 Merchant Banks as Chief Marketing Agent/ Advisors to Debt Issues

Both ICICI Ltd and IDBI Ltd. appointed their own subsidiaries respectively in

the role of Chief marketing agents and as advisors to their debt issues. ICICI Capital

Services Ltd, a subsidiary of ICICI Bank Ltd, was appointed to supervise marketing

activities of ICICI Ltd.’s 25 debt issues during the period under review. Similarly,

ICICI Securities and Finance Ltd. was the lone advisor to the 31 debt issues of ICICI

Ltd. In the same manner, IDBI Capital Market Services Ltd. acted as principal

marketing coordinator for the 31 debt issues by IDBI Ltd. Canara Bank provided

advisory services to Krishna Bhagya Jal Nigam Ltd. for their issue of non convertible

bonds of Rs. 350.17 crore in the year 2001-02. Tata Capital Ltd. appointed their sister

concern ( Tata Capital Markets Ltd) as advisor to their debt issue of Rs. 1,500 crore in

2008-09.

4.4 Public Sector Banks as Managers to Public Issues An analysis of data for the period of study has revealed a dismal participation

of merchant banking divisions/ subsidiaries of public sector banks in public issue

management of equity and debt. With the exception of SBI Capsital Markets Ltd,

other merchant banks of public sector banks have not performed a significant role in

the management of public issues. SBI Capital Markets Ltd. has been active as lead

manager, co-lead manager and as an advisor to the public issues throughout the period

under review. It has managed prestigious public issues as lead managers individually

or in association with other lead managers. As a result, it has been counted among the

top ranking merchant bankers in the field of public issue management. The year wise

number and amount of public issues managed by SBI Capital Markets. has been

explained earlier in this chapter.

100

Table 4.13 exhibits the public sector banks who acted as lead managers and

co-lead managers in the public issues of equity and debt during the period from 1997-

98 to 2008-09.

Table 4.13

Public Sector Banks & Subsidiaries as Managers to Public Issues

S. No. Merchant Banks Equity Issues Debt Issues No. Amount

Rs. in crore No. Amount

Rs. in crore (A) Lead Managers

1. SBI Capital Markets Ltd. 43 6,868.31 23 17,723.60

2. Canara Bank 14 65.97 - -

3. Allbank Finance Ltd. 10 471.42 - -

4. BOI Finance Ltd. 01 20.40 - -

5. All Securities & Finance Ltd. 01 2.50 - -

6. Dena Bank 01 1.80 - -

Total 70 7,430.40 23 17,723.60

(B) Co-lead Managers

1. SBI Capital Markets 11 25,822.32 26 11,904.89

2. Canara Bank 09 1,491.95 5 5,554.85

3. BOB Capital Markets Ltd 08 3,952.42 - -

4. BOI Finance Ltd. 02 126.25 - -

5. United Bank of India 01 2,188.36 2 1,843.49

6. PNB Capital Markets Ltd. 02 123.87 1 70

7. Union Bank 01 829.54 - -

Total 34 34,534.71 34 18,069.19

Source: Compiled from offer documents of issuer companies for relevant years.

It has been revealed in the table that merchant banks of public sector banks

were the lead managers for 70 equity issues and 23 debt issues out of total 685 public

issues floated during the period under review. Dominant role of SBI Capital Markets

Ltd as lead manager and co-lead manager has been evident from the table. It was the

co-BRLM/ lead manager to the largest issues, that is, the issue of DLF Ltd and

Reliance Power Ltd. in 2007-08. Canara bank followed SBI Capital Markets Ltd with

14 equity issues of small size. Allbank Finance Ltd (a subsidiary of Allahabad Bank)

was the lead manager to ten equity issues including six equity issues in 2008-09 itself.

101

Table 4.13 further shows the merchant bankers of public sector banks in the

role of co-lead managers. SBI Capital Markets Ltd participated in almost all debt

issues either as lead managers or co-lead managers. It was also co-lead manager for

nine equity issues during the period of study. Canara Bank and BOB Capital Markets

Ltd were the other merchant banks who played a major role as co-lead managers from

among public sector banks. In addition to the merchant banks mentioned in the table,

Indbank Merchant Banking Services Ltd, Vijay Bank, Central Banks of India, Andhra

bank, and State bank of Travancore were the co-lead managers for single issue of

equity each.

In addition to this, 14 issuer companies of equity issues appointed public

sector banks or their subsidiaries as advisors to their equity issues. BOB Capital

Market Ltd, a subsidiary of Bank of Baroda, acted as advisors to four public issues of

equity including an issue by Bank of Baroda for an amount of Rs. 1633.00 crores.

Canara Bank advised three issuer companies in the matters of issue of equity shares.

Punjab National Bank appointed PNB Gilts Ltd as advisors to their equity issue of

Rs. 3,120 crore. Similarly, Indbank Merchant Banking Services Ltd was the advisor to

the issue of Indian bank. Other public sector banks and subsidiaries who were

involved in the role of advisors to the equity issues included SBI Capital Markets Ltd,

Central Bank of India, State Bank of Hyderabad and PNB Capital Services Ltd.

4.5 Rights Issues A rights issue is a primary source for a listed company to raise additional

capital from the primary market. Rights issue means an issue of capital under section

81 (1) of the Companies Act, 1956, to be offered to the existing shareholders of the

company through a letter of offer. The ‘right’ herein refers to the entitlement of a

shareholder to apply for and receive additional shares in a company. The application

for additional shares is only a right and not an obligation on the shareholders. A

‘record date’ is fixed for the ascertainment of the right. The rights are normally

offered in a particular ratio to the number of securities held on the record date. The

shareholder is given the option to receive right shares or to renounce the right in

favour of any other person of his choice. Once the right is renounced, the renouncee is

entitled to subscribe for and receive the right shares. As the right issue is made by a

listed company, the market price becomes a benchmark for the price of the right issue.

Since the right issue has to be made to the existing shareholders of the company, it

102

has to be priced more favourably for the shareholders (below the market price of the

share) than a public issue. The issue price of the right issue is determined by the issuer

in consultation with the lead manager to the issue.

As per the provisions of SEBI (Merchant Bankers) Regulations, 1992, “any

issue of shares by way of rights by a company listed in a recognized stock exchange

and exceeding Rs. 50 Lakhs shall be managed by SEBI registered merchant banker.”

Regulation 18(2) requires a lead manager to enter into an agreement, before taking up

the assignment relating to the issue, with the issuer, setting out therein the mutual

rights, duties and liabilities relating to such issue, in particular to disclosures,

allotment and refund.

4.5.1 Role of Lead Merchant Banker in Rights Issues The lead manager appointed to manage the issue of rights shares has to

perform the following obligations –

(i) Preparation of Letter of Offer – In case of rights issues, a letter of offer is

prepared instead of prospectus by lead manager, with the prescribed

particulars including details of the rights offer. Merchant Banker must ensure

that it provides a true, correct and fair view of the state of affairs of the issuing

company.

(ii) Submission of letter of offer to SEBI – The draft letter of offer is filed with

SEBI by the lead manager six weeks prior to the proposed date of opening of

the rights issue. Along with the letter of offer, other mandatory documents,

such as the Memorandum of Understanding between lead manager and the

issuing company, due diligence certificate and the prescribed undertaking by

the issuer and lead manager have to be submitted to SEBI for observations and

comments. If any modification/ alteration is suggested by SEBI within 21 days

of receipt of such draft, it shall be incorporated in the letter of offer by the

merchant banker before filing a copy of the letter of offer with SEBI. The final

copy of letter of offer shall be submitted by the lead manager to SEBI two

weeks before the issue opens for subscription.

(iii) Compliance with rules and regulations – The lead manager submitting the

letter of offer shall be responsible for ensuring compliance with SEBI rules,

regulation, guidelines and requirements of other laws for the time being in

force.

103

(iv) Sending the letter of offer to shareholders – The lead manager shall ensure that

the letter of offer is sent to the shareholders at least one week prior to the date

of opening of the issue.

(v) Advertisement of rights issues- The lead manager has to ensure the publication

of an advertisement in English, Hindi and the regional language as prescribed,

at least 7 days before opening of the issue. The right issue is kept open for at

least 30 days and not more than 60 days.

(vi) Post issue obligations – The lead manager is responsible for the finalization of

allotment process. After the allotment of right shares, the allotment advices

should be sent to the shareholders within 6 weeks of the closure of the issue.

The post issue monitoring report is to be filed in a prescribed form with SEBI

by the lead manager on the 3rd day and the 50th day after the closure of the

issue.

4.6 Rights Issue Market During the Period of Study The bearish state of secondary capital market, investors’ apathy towards the

market, declining profitability of many listed companies and some adverse events at

national and international level contributed to the poor state of rights issues during the

initial period of study till 2002-03. However, from 2003-04 onward, the buoyant

secondary market, favourable economic environment in the country as a result of high

growth rate of GDP, low interest rate, high flow from Foreign Institutional Investors,

higher industrial growth and high returns in the secondary market contributed

favourably to rights issue market.

During the period of this study, the rights issue market presented

comparatively a dismal picture. There were 330 rights issues during the period of 12

years and the funds mobilized through these issues stood at Rs. 63,624 crore. In

comparison to this, funds raised through right issues during five years period ( 1992-

93 to 1996-97) immediately preceding the period of the study was as high as Rs.

37,973 crore mobilised through a total number of 1,645 rights issues.

The position regarding number of rights issues, amount of issues and the

number of merchant banks involved as lead managers and Co managers to the issues

during the period of study has been explained in table 4.14 and chart 4.5

104

Table 4.14

Rights Issues Floated By Joint Stock Companies and Merchant Banks involved (Amount in Rs. crore)

Years Issues Floated

Amount Mobilised Amount

Average Issue Size Amount

Lead Merchant Involved As Lead Managers

As co-lead Managers

Total

1997-98 49 1,703 34.75 33 24 57

1998-99 26 568 21.84 18 6 24

1999-00 28 1,560 55.71 17 7 24

2000-01 27 729 27.00 18 2 20

2001-02 13 1,041 80.07 11 9 20

2002-03 12 431 35.91 10 4 14

2003-04 22 1,006 45.73 15 3 18

2004-05 26 3,616 139.07 14 5 19

2005-06 36 4,126 114.61 19 2 21

2006-07 38 3,704 97.47 20 2 22

2007-08 30 3,2518 1,083.93 25 1 26

2008-09 23 12,622 548.78 20 1 21

Total 330 63,624 192.8 220 66 286

Source: - Compiled from offer documents of companies, SEBI website and Prime Database.

The trend in the year wise amount raised through rights issues can be

witnessed from the following chart also.

105

Chart 4.5

The table shows that the largest amount of Rs. 32,518 crores was mobilised in

2007-08. This amount included a sum of Rs. 16736.30 crore raised by State bank of

India alone. The year 2008-09 further saw a declining trend in rights issues market

and only 12, 622 crores could be raised through 23 issues during this year. However,

only Rs. 431 crore could be raised through 12 issues in 2002-03. The largest number

of issues (49) were witnessed in 1997-98 and the lowest number of 12 issues took

place in 2002-03.

Average size of the issue also showed a fluctuating trend during this period. It

was 34.75 crore in 1997-98, courtesy the largest rights issue of Rs. 799.29 crore by

Ispat Industries Ltd., which individually contributed 47% of year’s total mobilization.

In 1998-99, average issue size declined to the lowest figure of Rs. 21.84 crore. A

recovery in rights issue market in 1999-2000 increased the average issue size to Rs.

27 crore in 2000-01. Average issue size further increased to 80.07 crore during the

year 2001-02 due to a single rights issue of debentures of Rs. 671.63 crore by Tata

Engineering & Locomotive Co. Ltd. It again increased in 2004-05 to Rs. 139.07 crore

after a decline in previous two years. The year 2007-08 witnessed the highest average

issues size of Rs. 1083.93 crores due the largest issue of Rs. 16,736.30 crore by State

Bank of India. Overall, the average size of the issue was 192.80 crore.

The table 4.14 further shows the number of merchant banks involved in the

management of rights issues in the role of lead managers and co lead managers/

106

advisors to the issue. In all, 286 merchant banks (220 as lead managers and 66 as co-

lead managers/advisors) were involved in the management of 330 rights issues during

the period under review. The largest number of merchant bankers involved was in the

year 1997-98 which was 57 for 49 rights issues. On the other hand, only 14 merchant

banks were involved in 12 rights issues during the year 2002-03. A declining number

of merchant banks involved in the management of rights issues were noticed during

the latter period of study. The trend shows that only reputed and professional

merchant banks with good track record has remained in the management activities of

rights issues.

4.7 Management of Rights Issues Table 4.15 and chart 4.6 depicts the year wise involvement of both foreign

and Indian merchant banks in rights issues.

As revealed in the table, out of aggregate Rs. 63,624.39 crore mobilised

through rights issues, a sum of Rs. 27,375.44 crore was managed by Indian merchant

banks while foreign merchant banks was able to manage a sum of 36,248.95 crore.

The amount of rights issues managed by foreign merchant bankers was in the range of

Rs. 7.83 crore in 2002-03 to Rs. 21,956.80 crore in 2007-08, while the range of

amount managed through Indian merchant bankers varied from Rs. 172.46 crore in

2001-02 to Rs. 10,561.72 crore in 2007-08.

A glance at the number of rights issues managed by foreign and Indian

Merchant banks reveals that while only 57 issues were managed by foreign merchant

banks, Indian merchant Banks were the preferred choice of 273 issuers of rights

shares. During the period under review, foreign merchant banks were noticed to have

managed in the range of one to nine rights issues and this range in case of Indian

Merchant Banks was from eight rights issues in 2001-02 to 40 issues in 1997-98.

107

Table 4.15

Rights Issue Management by Lead Merchant Bankers (Amount in Rs. crore)

Years Foreign Merchant Banks Indian Merchant Banks Total No. of Issues

Amount Average amount

No. of Issues

Amount Average amount

No. of Issues

Amount Average amount

1997-98 09 239.38

(14.05)

26.60 40 1,463.64

(85.95)

36.59 49 1,703.02 34.75

1998-99 06 279.04

(49.16)

46.51 20 288.52

(50.84)

14.43 26 567.56 21.83

1999-00 07 728.56

(46.70)

104.08 21 831.68

(53.30)

39.6 28 1,560.24 55.72

2000-01 04 115.33

(15.81)

28.83 23 614.08

(84.19)

26.7 27 729.41 27.01

2001-02 05 868.8

(83.43)

173.76 08 172.46

(16.57)

21.56 13 1,041.26 80

2002-03 01 7.83

(1.81)

7.83 11 423.43

(98.19)

38.49 12 431.26 35.94

2003-04 03 258.94

(25.74)

86.31 19 746.86

(74.26)

39.31 22` 1,005.80 45.72

2004-05 04 274.38

(7.59)

68.59 22 3,341.62

(92.41)

151.89 26 3,616.00 139.08

2005-06 04 2,471.49

(59.90)

617.87 32 1,654.33

(40.10)

51.7 36 4,125.82 114.6

2006-07 04 1,292.96

(34.91)

323.24 34 2,410.54

(65.09)

70.9 38 3,703.50 97.46

2007-08 06 21,956.80

(67.52)

3659.47 24 10,561.72

(32.48)

440.07 30 32,518.52 1,083.95

2008-09 04 7,755.44

(61.44)

1938.86 19 4,866.56

(38.56)

256.13 23 12,622.00 548.78

Total 57 36,248.95

(56.97)

635.95 273 27,375.44

(43.03)

100.27 330 63,624.39 192.8

Note: - Figures in parentheses show percentage of total amount mobilised through rights issues

Source: - Compiled from Letters of Offer of Companies, SEBI Website.

108

The following chart also shows the comparative share of foreign and Indian

merchant bankers in the year wise amount mobilization through right issues.

Chart 4.6

Further, the table reveals that 43.03% of total amount mobilized through rights

issues was managed by Indian merchant bankers. This share was 56.97% in case of

foreign merchant banks. Foreign merchant banks were able to secure the business of

83.43% of total amount in 2001-02, which went down to 7.59% only in 2004-05. In

2002-03, foreign merchant banks were able to manage only one rights issue of a small

amount of Rs. 7.83 crore. On the other hand, the proportion of total amount of rights

issues managed by Indian merchant banks was 16.57% in 2001-02 which increased to

as high as 98.19% in 2002-03.

The analysis of average issue size of right issues managed by both categories

of merchant bankers shows that foreign merchant banks handled comparatively higher

issue size in all the years except 2004-05. So, foreign merchant banks were the

preferred choice of issuers of comparatively large amount of rights issues.

4.7.1 Indian Merchant Banks as Lead Managers in Rights Issues The performance of top Indian merchant bankers in the management of right

issues on the basis of number of issues and total amount managed has been shown in

Table 4.16.

It is visible from the table that Indian merchant banks were the ‘lead managers

to 273 rights issues’ with an aggregate amount of Rs. 27,375.44 crore. Thus Indian

109

merchant banks contributed 43.03% to the pool of total funds mobilized through

rights issues.

The table 4.16 further shows that SBI Capital Markets Ltd. was on the top

rank with the management of Rs. 5,780.79 crore through 25 rights issues. This was

followed by ICICI Securities and Kotak Mahindra Capital Co. Ltd. with Rs. 5,296.03

crore and Rs. 4444.14 crore respectively. Among the top ranking merchant banks,

Enam Securities managed a sum of Rs. 3479.31 crore through 15 rights issues and

Ambit Corporate Finance secured the busniess of Rs. 1125.55 crore through five

issues. Keynote Corporate Services Ltd. was able to participate in 31 issues of Rs.

650.22 crores. Other merchant bankers involved as lead managers were Karvy

Investor Services for Rs. 172.69 crore, IL&FS Investsmart with five issues of Rs.

301.49 crore Rs. 301.49 crore and Lodha Capital three issues of Rs. 179.22 crore.

On the basis of number of rights issues managed, Keynote Corporate Services

was the preferred choice of the largest number of issuers (31 rights issues) with an

average size of Rs. 20.97 crore. ICICI Securities and SBI Capital Markets Ltd were

the other top ranking players with the involvement in 28 and 25 rights issues

respectively. Lodha Capital participated in only three issues while IL&FS Investsmart

was able to manage five rights issues.

The analysis of average size of rights issues managed by different Indian

merchant bankers showed that Kotak Mahindra Capital Co. managed largest sized

rights issues (eleven in number) with an average issue size of Rs. 404.14 crore. It was

followed by Enam Securities with an average issue size of Rs. 231.95 crore from 15

rights issues. On the other hand, Karvy Investors Services and Keynote Corporate

Securities Ltd. managed minimum sized issues during the period under review with

average issue size of Rs. 17.26 crore and Rs 20.97 crore respectively.

ICICI Securities was the manager of rights issues to the tune of 8.32% of total

fund mobilised during the period of study. It managed 60.92% of total rights issue

amount in 1997-98 and 62.70% in 2004-05. However, its share declined to 1.12% in

2007-08 and less than one percent in 2006-07. Similarly SBI Capital Markets Ltd

showed their presence by managing 9.08% of total resource mobilised through rights

issues and participated continuosly during the entire period under review except in

1997-98.

110

111

112

113

Enam Securities managed an aggregate 5.47% of amount through rights issues

with its major share in 2006-07. Kotak Mahindra Capital Co. was able to manage

6.98% of the fund mobilised through rights issues. It was the lead manager, along

with other five merchant bankers, to the largest issue of Rs. 16,736.30 crore by State

Bank of India in 2007-08. On the other hand, the share of IL&FS Investsmart, Lodha

Capital Ltd. and Karvy Investors Services Ltd. in the total funds raised through rights

issues was less than one percent.

A number of tiny rights issues have been managed by various small merchant

banks covered in other merchant banks category. This included a total of 140 rights

issues mobilizing an aggregate sum of Rs. 5879.59 crore (9.24%) during the period

of study.

From the analysis of above table, it may be concluded that SBI Capital

Markets Ltd. performed better than other Indian merchant banks. It was the preferred

choice of 25 issuers of rights shares with an aggregate amount of Rs. 5780.79 crore.

Similarly issuers with small issue size preferred Keynote Corporate Services as their

lead merchant banker

Amount managed by Indian merchant banks as lead managers during the

period from 1997-98 to 2008-09 has been presented in the following chart.

114

Chart 4.7

4.7.2 Foreign Merchant Banks as Lead Managers in Rights Issues A small number of foreign merchant banks registered with SEBI have also

played a leading role in the management of public and rights issues floated by joint

stock companies during the period under review.

Table 4.17 shows the year wise participation of individual foreign based

merchant bankers in the management of rights issues as lead managers.

Out of 57 rights issues with an aggregate amount of Rs. 36,248.95 crore lead

managed by foreign merchant banks, DSP Merrill Lynch secured the confidence of 12

issuer companies with an aggregate amount of Rs. 10,129.42 crore. This amount was

15.92 % of the total resource mobilised through rights issues during the period of

study. Another foreign merchant bank, JM Morgan Stanley was the lead manager in

19 rights issues with the total amount of Rs. 10,112.15 crore (15.89%). It managed

67.65% of the total funds in 2001-02 and 18.14% of the funds mobilised through

rights issues in 2006-07. HSBC Securities & Capital (India) Ltd. participated in the

management of rights issues for four years only and managed a sum of Rs. 304.28

crore through 7 issues. Citigroup Global Markets helped to contribute 13.55 % of total

funds through four rights issues.

115

116

In the category of other foreign merchant banks, Deutsche Equities (India) was

the lead manager along with other merchant bankers for the rights issue of Rs. Rs.

16,736.30 crore by State bank of India in 2007-08. Similarly, JP Morgan and ABN

Amro Securities (India) Ltd participated as lead managers for the largest issue of Rs.

5,047.70 crore and 4,145.81 crore by Hindalco Industries and Tata Motors

respectively in 2008-09. Standard Chartered Grindley Bank acted as lead managers in

two rights issues of Rs. 117.09 crore and UNO Asia Investment Banque Ltd. was the

lead manager for a single rights issue of Rs. 5.00 crore. The amount of rights issues

managed by foreign merchant bankers has been shown in the following chart also.

Chart 4.8

4.7.3 Public Sector Banks and their Subsidiaries as Managers to the Rights Issues

From an analysis of letters of offers issued by companies for rights issues

during the period under review, a dismal performance of public sector banks and

their subsidiaries was witnessed in the management of rights issues with the exception

of SBI Capital Markets Ltd. This merchant bank competed with other top ranking

merchant banks in India by handling 25 rights issues for Rs. 5,780.79 crore as a lead

manager.

117

Number and amount of rights issues managed by all public sector banks in the

capacity of lead merchant banker is presented in Table 4.18

Table 4.18

Public Sector Banks and Their Subsidiaries as Lead Managers in Rights Issues

S. No Merchant Banks No. of rights Issues

Amount (Rs. In crore)

1. SBI Capital Markets Ltd. 25 5,780.79

2. Punjab National Bank 01 74.93

3. Canara Bank 03 73.29

4. Indian Overseas Bank 02 63.85

5. Indbank Merchant Banking Services 02 38.44

6. BOB Capital Markets 03 36.21

7. BOI Finance 02 7.47

8. Vijay Bank 01 5.27

9. Central Bank of India 01 1.35

Total 40 6,081.6

Source: - Compiled from Letters of Offer by Issuer Companies, SEBI website and Prime Database.

As revealed in the table, out of total 40 rights issues lead managed by

merchant banks divisions/ subsidiaries of public sector bank, SBI Capital Markets Ltd

had a share of 25 right issues involving a toal amount of Rs. 6,081.60 crore. All

other merchant banker were the lead manager for one or two right issues of very small

size. Two right issues managed by Indbank Merchant Banking Services Ltd included

one issue of Rs. 60.50 crore jointly lead managed by private merchant banker, AK

Capital Services. Ltd.

In addition to this, Canara Bank was the co-lead manager to four rights issues

for an aggregate amount of Rs. 921.09 crore, including a largest issue of Rs. 977.29

crore in 1997-98. BOB Capital Markets Ltd., a subsidiary of Bank of Baroda, acted

as co-lead manager in one rights issue of Rs. 8.96 crore only in 1997-98.

4.7.4 Management of the Largest and the Smallest Rights Isssues A glance at Table 4.19 reveals the largest and the smallest rights issues floated

during the period from 1997-98 to 2008-09 along with their lead managers and co-

lead managers.

118

Table 4.19 Mangement of the Largest and the Smallest Rights Issues.

(Amount in Crores) Year Largest Issues Issues Size

Rs. Lead Manager (s) Co-Lead Managers Smallest Issues Issue Size

Rs. Lead Manager (s)

1997-98

Ispat Industries Ltd. 799.29 (45.85)

ICICI Securities IDBI Bank, SBI Caps., IFCI, JM Financial, Canara Bank

Ashu Hickson Ltd.

0.45 Suraj Securities

1998-99 Indian Cement Ltd. 160.84 (22.33)

DSP Merrill Lynch ICICI Sec., IDBI Bank, JP Morgan

OPG Metal & Finance Ltd.

0.50 N.A.

1999-00 IFCI Ltd. 352.31 (22.58)

SBI Capital Markets Ltd. Standard Chartered- STCI

India Com Directories

1.00 V.B. Desai Financial

2000-01 Centurian Bank 128.07 (17.54)

SBI Capital Markets Ltd. ----- Cede Investment Ltd.

0.20 C.D. Equisearch

2001-02 Tata Engineering & Locomotive Ltd.

671.62 (64.51)

J M Morgan Stanley ----- Mindteck (India) Ltd.

0.94 Ind Global Corporates

2002-03 Ballarpur Industries Ltd. 217.09 (50.34)

Kotak Mahindra Capital Co. ICICI Securities IPI Steel Ltd. 1.76 Aryaman Financial Services.

2003-04 Electrolux Kelvinator Ltd. 199.77 (54.54)

Ambit Corporates ------ Manapuuram General Finance

1.50 Munoth Financial Services

2004-05 State Industries (India) Ltd. 1972.30 (54.54)

ICICI Securities J.M. Morgan, JP Morgan

Coonoor Tea Estate Co.

1.25 Karvy Investor Services

2005-06 Hindalco Industries Ltd. 2226.60 (53.97)

J.M. Morgan Stanley DSP Merrill Lynch

--------- Bhagwati Autocast Ltd.

2.56 Vivro Finance Services

2006-07 Aditya Birla Nuvo Ltd. 779.25 (21.04)

Enam Financial, DSP Merrill

-- Kaycee Industries Ltd.

1.99 Chartered Capital & Investment

2007-08 State Bank of India 16,736.30 (51.46)

Citigroup, CLSA India, Deutsche, DSP Merrill, Kotak, SBI Capital

- Kanpur Plastipack Ltd.

3.54 Vivro Financial Services

2008-09 HIndalco Industries Ltd. 5,047,70 (40.00)

ABN Amro, Citigroup, Deutsche, DSP Merrill, SBI Caps.

- Multiplus Holdings Ltd.

0.48 No lead manager, as the issue was less than Rs. 50 Lakhs.

Total 46,027.44 (72.34)

18.71

Note: - Figures in parentheses denote percentage of total amount mobilised through rights issues during the respective year. Source: - Compiled from letters of offer of Companies, SEBI website.

119

The year wise relative importance of each such rights issue can be judged

from the percentage share of each largest issue in the total amount mobilised through

rights issues in each year.

The twelve largest rights issues as shown in the table contributed a total

amount of Rs. 46,027.44 crore in the pool of resources mobilised through rights

issues. This was 72.34% of total rights issues amount. The largest amount of Rs.

16,736.30 crores was raised through rights issues by State Bank of India in 2007-08.

The amount stood at 51.46% of the total amount raised in that year.

The single largest rights issue by Tata Engineering & Locomotive Ltd

contributed 64.51% of the total funds mobilised in 2001-02. Similarly, rights issues of

equity shares by Sterlite Industries Ltd. for Rs. 1972.30 crore accounted for 54.54%

of total funds raised through rights issues in 2004-05.

The table 4.19 further shows that ICICI Securities Ltd. and SBI Capital

Markets Ltd. were the lead managers for two largest rights issues each. DSP Merrill

Lynch Ltd. handled one largest rights issue independently and three issues jointly

with JM Morgan Stanley Ltd. and Enam Financial Services Ltd and other merchant

bankers. The largest issue of Rs. 2226.60 crore in 2005-06 was lead managed jointly

by two foreign merchant banks. Foreign merchant bankers dominated in the

management of largest rights issues in 2007-08 and 2008-09 as well.

Five of twelve issuer companies appointed multiple merchant banks to handle

their issues. The maximum number of six merchant bankers were engaged by Ispat

Industries Ltd. in their rights issue of Rs. 799.29 crore in 1997-98 and by State Bank

of India in their rights issue of Rs. 16,736.30 crore. in 2007-08.

The year wise smallest rights issues along with the amount of individual issues

is also available in the table. All smallest rights issues were managed by one lead

managers and co lead managers were not appointed in any case. All the merchant

bankers for handling the smallest rights issues were Indian private merchant bankers.

Conclusion

Merchant banks play an important role as one of the intermediaries in the

management of public issues. They play the role of lead managers/ BRLMs, co-lead

managers and as advisors to the public issues. Both Indian and foreign merchant

bankers participated in issue management activities during the period under review.

However, Indian merchant bankers dominated the issue activities of equity shares

120

both with respect to number nad amount of issues. Companies making large size issue

of equity preferred foreign merchant bankers as lead managers.

Among the Indian merchant banker Kotak Mahindra Capital Co., Enam

Securities, SBI Capital Markets, karvy Investor Services, ICICI Securities were the

major participants in the management of public as well as rights issues. JM morgan

Stanley, DSP Merrill Lynch and ABN Amro played the leading role from among the

foreign merchant bankers.

Analysis of offer documents showed that the large size issues were managed

by multiple lead managers while single merchant banker acted as lead manager in

small size issues. Appointment of merchant bankers as advisors to the issue was not

the common practice among issuer companies. A number of lead managers, co-lead

managers, co-managers were appointed by both ICICI Ltd and IDBI Ltd. for their

bond issues to public. Further, merchant banking divisions/ subisidiaries of public

sector banks showed as very limited participation in public issue management of

equity and debt during the period under review. With the exception of SBI Capital

Markets and Canara Bank, no other public sector bank performed a significant role in

the issue management activities.

81

Table 4.5 Indian Merchant Banks as Lead Managers in Public Issues of Equity

(Amount in Rs. crore)

Year Total Amount Raised

Rs.

Merchant Banks Kotak Mahindra Capital Co. Enam Securities ICICI Securities SBI Capital Markets

No. of Issues

Amount Rs.

Average amount

Rs.

No. of Issues

Amount Rs.

Average amount

Rs.

No. of Issues

Amount Rs.

Average amount

Rs.

No. of Issues

Amount Rs.

Average amount

Rs. 1997-98 1132 01 144.38

(12.72) 144.38 - - - 02 367.00

(32.42) 183.50 02 217.72

(19.23) 108.86

1998-99 504.02 - - - 01 11.61 (2.18)

11.61 02 104.20 (20.63)

52.10 04 171.30 (33.99)

42.82

1999-00 2975.25 03 1190.91 (40.03)

01 39.3 (1.31)

39.30 05 178.68 (6.00)

35.73 06 351.61 (11.80)

58.60

2000-01 2483.76 02 893.21 (35.96)

446.66 01 4.03 4.03 - - - 04 271.95 (10.95)

67.98

2001-02 1082 - - - - - - 01 164.49 (15.20)

164.49 - - -

2002-03 1038.68 - - - - - - 02 673.00 (64.79)

82.24 01 100.00 (9.62)

100.00

2003-04 17821 03 5368.63 (30.12)

1789.54 02 238.50 (1.34)

119.25 03 987.63 (5.54)

329.21 06 1842.21 ( 10.33)

307.03

2004-05 21431.56 02 3848.22 (17.95)

1924.11 06 2969.88 (13.85)

494.98 02 2790.99 (13.02)

1395.50 04 410.13 (1.91)

102.53

2005-06 23675.7 05 3408.22 (14.39)

681.64 10 2636.72 (11.14)

263.67 07 2051.60 (8.66)

293.09 08 1289.12 (5.44)

161.14

2006-07 24993.37 03 1757.09 (7.03)

585.69 07 3092.68 (12.37)

376.67 03 1588.35 ( 6.35)

529.45 06 1237.18 (4.95)

206.20

2007-08 52,219.00 10 6,812.90 (13.04)

681.29 07 7,893.28 (15.12)

1,127.61 05 5,032.50 (9.64)

1,006.50 02 977.09 (1.87)

488.51

2008-09 2034.00 01 207.66 (10.20)

207.66 - - - - - - - - -

Total 1,51,390.34 30 23,631.22 (15.61)

787.71 35 16886.00 (11.15)

562.87 32 13,938.44 (9.21)

435.58 43 6868.31 (4.53)

159.73

Contd.......

82

Year Karvy Investor Services UTI Securities IL&FS Investsmart Anand Rathi Securities

No. of Issues

Amount Rs.

Average amount

Rs.

No. of Issues

Amount Rs.

Average amount

Rs.

No. of Issues

Amount Rs.

Average amount

Rs.

No. of Issues

Amount Rs.

Average amount

Rs. 1997-98 - - - 01 5.79 5.79 - - - - - - 1998-99 - - - - - - - - - - - - 1999-00 05 19.67 3.93 02 12.55 6.28 - - - - - - 2000-01 10 77.64

(3.13) 7.76 03 15.53 5.18 01 50.00

(2.01) 50.00 02 133.26

( 5.36) 66.63

2001-02 - - - - - - - - - - - - 2002-03 - - - - - - 01 44.86

(4.32) 44.86 - - -

2003-04 01 10.00 10.00 01 19.88 19.88 01 30.00 30.00 - - - 2004-05 01 31.78 31.78 03 236.75

(1.10) 118.38 01 151.2 151.2 01 35.00 35.00

2005-06 10 786.90 (3.32)

78.69 10 331.44 (1.40)

33.14 06 559.82 (2.36)

93.30 02 129.28 64.64

2006-07 05 245.6 49.10 06 497.07 (1.98)

82.84 02 176.81 88.41 04 354.50 (1.41)

88.62

2007-08 02 165.00 (0.32)

82.50 07 317.14 (0.61)

45.31 02 721.05 (1.38)

360.52 04 257.03 (0.49)

64.26

- - - - - - - - - 01 69.75 (3.42)

69.75

Total 34 1,336.59 (0.88)

39.31 33 1,436.15 (0.95)

43.52 14 1733.74 (1.14)

123.84 14 978.78 (0.64)

69.91

Contd.......

83

Year IDBI & IDBI Capital Market Keynote Corporate Service Other Merchant Banks Total by Indian Merchant Banks

No. of Issues

Amount Rs.

Average amount

Rs.

No. of Issues

Amount Rs.

Average amount

Rs.

No. of Issues

Amount Rs.

Average amount

Rs.

No. of Issues

Amount Rs.

Average amount

Rs. 1997-98 04 211.98

(18.72) 53.00 - - - 43 175.16

(15.4) 4.07 53 1122.03

(99.10) 21.17

1998-99 - - - - - - 17 120.71 (23.94)

7.10 20 407.82 (80.92)

20.39

1999-00 - - - 02 8.85 4.42 22 152.84 (5.13)

6.94 46 1954.41 (65.69)

42.48

2000-01 - - - 03 17.90 5.97 79 68.23 (2.74)

0.86 105 1930.71 (77.73)

18.36

2001-02 01 74.50 (6.88)

74.50 - - - 03 8.99 3.00 05 247.98 (22.92)

49.60

2002-03 - - - - - 01 10.85 (1.04)

10.85 05 828.71 (79.8)

165.74

2003-04 - - - - - - 06 91.99 (0.5)

15.33 23 8588.84 (48.20)

373.4

2004-05 - - - 01 7.53 7.53 03 50.8 16.93 24 10532.28 (49.15)

438.84

2005-06 - 68.00 68.00 06 298.03 (1.26)

49.71 29 1576.09 (6.65)

54.34 93 13135.22 (55.48)

141.24

2006-07 05 245.40 49.08 05 203.74 40.74 26 1863.31 (7.4)

71.66 72 11261.73 (45.06)

156.41

2007-08 02 218.18 (0.41)

109.09 03 93.70 31.23 33 4,516.71 (8.65)

136.87 77 27,004.56 (51.71)

350.71

2008-09 - - - 06 163.05 (6.69)

27.17 13 1385.88* (68.13)

122.58 21 1826.34 (89.80)

86.97

Total 12 818.06 (0.54)

68.17 26 792.8 (0.52)

30.49 275 10,021.56 (6.62)

36.44 544 78840.63 (52.08)

144.92

Note: - Figures in parentheses show percentage of total amount mobilised through public issues of equity during the year. * This amount includes Rs. 333.66 crore managed by Allbank Finance Ltd., Rs. 169.10 by Moti lal Oswal, Rs. 207.66 by Edelweiss and Rs. 148.97 crore by Almondz Global Securities Source: - Compiled from Offer Documents of Companies, SEBI Website and Prime directories of releveant Years.

86

Table 4.6 Foreign Merchant Banks as Lead Managers in Public Issues of Equity

(Amount in Rs. crore) Years

Total amount raised

Rs.

Merchant Banks J M Morgan Stanley DSP Merrill Lynch ABN Amro HSBC Securities & Capital

No. of Issues

Amount Rs.

Average amount

Rs.

No. of Issues

Amount Rs.

Average amount

Rs.

No. of Issues

Amount Rs.

Average amount

Rs.

No. of Issues

Amount Rs.

Average amount

Rs. 1997-98 1132 01 6.25 6.25 - - - - - - - - - 1998-99 504.02 - - - 02 96.20

(19.08) 48.10 - - - - - -

1999-00 2975.25 03 682.36 (22.93)

227.45 05 327.67 (11.01)

65.53 - - - - - -

2000-01 2483.76 05 270.68 (10.90)

54.13 02 148.54 (5.98)

74.27 - - - 02 125.02 (5.03)

62.51

2001-02 1082.00 01 834.02 (77.08)

834.02 - - - - - - - - -

2002-03 1038.68 01 209.97 (20.2)

209.97 - - - - - - - - -

2003-04 17821.00 03 4251.03 (23.85)

1417.00 02 4102.63 (23.02)

2051.32 - - - 01 878.50 (4.93)

878.50

2004-05 21431.56 02 3856.10 (17.99)

1928.05 02 3970.15 (18.52)

1985.07 - - - 316.55 (1.48)

316.55

2005-06 23675.70 06 4717.99 (19.93)

786.33 03 4665.47 (19.70)

1555.15 200.00 - 01 407.49 (1.72)

407.49

2006-07 24993.37 04 4300.00 (17.20)

1075.00 05 4,309.83 (17.24)

861.96 01 2139.96 (8.56)

2139.96 - 300.00 (1.20)

-

2007-08 52,219.00 03 4779.86 (9.15)

1593.29 03 4795.74 (9.13)

1598.58 1265.40 (2.42)

- - - -

2008-09 2034.00 207.66 (10.20)

- - - - - - - - - -

Total 1,51,390.34 29 24,115.92 (15.92)

831.58 24 22,416.23 (14.81)

934 01 3,605.36 (2.38)

3,605.36 04 2027.56 (1.34)

506.89

Contd.......

87

Year Citigroup Global Markets Others Foreign Merchant Banks Total by Foreign Merchant Banks

No. of issues

Amount Rs.

Average amount

Rs.

No. of Issues

Amount Rs.

Average amount

Rs.

No. of Issues

Amount Rs.

Average amount

Rs. 1997-98 - - - 02 3.72 1.86 03 9.97

(0.9) 3.32

1998-99 - - - - - - 02 96.20 (19.08)

48.10

1999-00 - - - 01 10.81 10.81 09 1,020.84 (34.31)

113.43

2000-01 - - - 01 8.81 8.81 10 553.05 (22.27)

55.30

2001-02 - - - - - - 01 834.02 (77.08)

834.02

2002-03 - - - - - - 01 209.97 (20.20)

209.97

2003-04 - - - - - - 06 9,232.16 (51.80)

1538.69

2004-05 316.56 (1.48)

316.56 2,439.93 (11.38)

- 05 10,899.28 (50.85)

2179.85

2005-06 01 549.53 (2.32)

549.53 - - - 09 10,540.48 (44.52)

1171.16

2006-07 01 996.14 (3.98)

996.14 01 1,685.71 (6.74)

1685.71 13 13,731.64 (54.94)

1056.28

2007-08 03 3,620.57 (6.93)

1,206.86 04 10,782.62* (20.6)

2695.65 13 25,214.44 (48.28)

1939.57

2008-09 - - - - - - - 207.66 - Total 05 5482.8

(3.62) 1096.56 09 14,931.60

(9.86) 1659.07 72 72,549.71

(47.92) 1,007.63

Notes: - Figures in parentheses show percentage of total amount mobilised through public issues of equity. * This amount includes Rs. 3762.28 crore managed by Deutsche Equities, Rs. 2961.85 crore by UBS. Securities Ltd, Rs. 2,515.62 crore by Goldman Sach( India) and Rs. 1,543.12 crore by Lehman Brothers. Source: - Compiled from offer documents of companies, SEBI website and Prime Database Directories of relevant years.

110

Table 4.16 Indian Merchant Banks as Lead Managers in Right Issues

(Amount in Rs. crore)

Year

Merchant Banks ICICI Securities Enam Securities SBI Capital Markets Kotak Mahindra Capital Co.

No. Of Issues Amount Average

amount No. of Issues Amount Average

amount No. of Issues Amount Average

amount No. of Issues Amount Average

amount 1997-98 06 1,037.55

(60.92) 173.93 02 65.80 (3.86) 32.90 - - - 03 214.50

(12.60) 71.50

1998-99 05 148.03 (26.07) 29.61 - - - 02 72.30

(12.73) 36.15 01 19.52 (3.43) 19.52

1999-00 02 52.48 (3.36) 26.24 - - - 05 542.56

(34.77) 108.51 02 44.38 (2.84) 22.19

2000-01 - - - - - - 02 290.95 (39.89) 145.48 - - -

2001-02 - - - - - - 01 51.03 (4.90) 51.03 01 7.65 7.65

2002-03 02 42.95 (9.96) 21.48 01 15.60

(3.61) 15.60 01 33.71 (7.81) 33.71 01 217.09

(50.31) 217.09

2003-04 02 101.95 (10.13) 50.97 - - - 02 36.83

(3.66) 18.41 01 196.73 (19.56) 196.73

2004-05 05 2,267.30 (62.70) 453.46 01 307.08

(8.49) 307.08 02 177.12 (4.89) 88.56 - - -

2005-06 02 126.38 (3.06) 63.19 02 263.00

(6.37) 131.50 01 44.57 (1.08) 44.57 02 397.01

(9.62) 198.50

2006-07 01 56.43 56.43 05 1,265.93 (34.18) 253.19 04 484.75

(13.08) 121.18 - - -

2007-08 02 366.17 (1,12) 183.82 02 397.98

(1.22) 04 2,587.83 (7.96) 646.96 3,347.26

(10.29)

2008-09 01 1,096.79 (1.22) 1,096.79 02 1,163.92

(1.22) 581.96 01 1,459.14 (1.22) 1,459.14

Total 28 5,296.03 (8.32) 196.14 15 3,479.31

(5.47) 231.95 25 5,780.79 (9.08) 231.23 11 4,444.14

(6.98) 404.01

Contd..... .

111

Year Keynote corporate Services Ambit Corporate Finance IL&FS Investsmart Lodha Capital

No. of Issues Amount Average

amount No. of Issues Amount Average

amount No. of Issues Amount Average

amount No. of Issues Amount Average

amount

1997-98 01 4.33 4.33 - - - - - - - - -

1998-99 02 6.52

(1.14)

3.26 - - - - - - - - -

1999-00 02 10.07 5.03 - - - - - - 01 78.23 (5.01) 78.23

2000-01 01 6.00 6.00 - - - 01 40.47 (5.55) 40.47 01 41.80

(5.73) 41.80

2001-02 01 46.80 (4.49) 46.80 - - - - - - -

2002-03 - - - - - - - - - - -

2003-04 04 32.14 (3.19) 8.03 01 199.77

(19.86) 199.77 - - - - - -

2004-05 03 69.04 (1.90) 23.00 01 213.85

(5.91) 213.85 02 125.32 (3.46) 62.66 01 59.19

(1.63) 59.19

2005-06 06 160.08 (3.87) 26.67 - - - 02 135.70

(3.28) 67.85 - - -

2006-07 04 138.57 (3.74) 34.64 - - - - - - - - -

2007-08 03 37.56 12.52

2008-09 04 139.11 (3.74) 34.78 03 711.93

(3.74) 237.31

Total 31 650.22 (1.02) 20.97 05 1125.55

(1.77) 225.11 05 301.49 (1.63) 60.30 03 179.22

(0.97) 59.74

Contd.....

112

Year Karvy Investors Service Other Merchant Banks Total

No. of Issues

Amount Average amount

No. of Issues

Amount Average amount

No. of Issues

Amount Average amount

1997-98 - - - 28 141.46 (8.30) 5.05 40 1,463.64

(85.95) 36.59

1998-99 - - - 10 42.15 (7.42) 4.21 20 288.52

(50.84) 14.43

1999-00 - - - 9 103.97 (6.67) 11.55 21 831.68

(53.30) 39.60

2000-01 - - - 18 234.86 (32.19) 13.04 23 614.08

(84.19) 26.70

2001-02 01 27.47 (2.63) 27.47 04 39.51

(3.80) 9.88 08 172.46 (16.57) 21.556

2002-03 01 36.00 (8.34) 36.00 05 78.08

(18.10) 15.61 11 423.43 (98.19) 38.49

2003-04 01 1.96 1.96 08 177.72 (17.68) 22.21 19 746.86

(74.26) 39.31

2004-05 02 12.95 6.48 05 109.77 (3.01) 21.95 22 3,341.62

(92.41) 151.89

2005-06 02 48.70 (1.18) 24.35 15 478.89

(10.32) 30.42 32 1,654.33 (40.10) 51.7

2006-07 02 30.09 15.04 18 434.77 (11.74) 24.15 34 2,410.54

(65.09) 70.9

2007-08 - - - 12 3,824.92 (11.76) 318.74 24 10,561.72

(32.48) 440.07

2008-09 - - - 08 295.67 (0.46) 36.96 19 4,866.56

(38.56) 256.13

Total 09 157.17 (0.85) 17.46 140 5,879.59

(9.24) 42.41 273 27,375.44 (434.03) 100.27

Note: - Figures in parentheses show percentage of total amount mobilised through rights issues Source: - Compiled from Letters of offer of issuing companies, SEBI Website and Prime database.

110

Table 4.16 Indian Merchant Banks as Lead Managers in Right Issues

(Amount in Rs. crore)

Year

Merchant Banks ICICI Securities Enam Securities SBI Capital Markets Kotak Mahindra Capital Co.

No. Of Issues Amount Average

amount No. of Issues Amount Average

amount No. of Issues Amount Average

amount No. of Issues Amount Average

amount 1997-98 06 1,037.55

(60.92) 173.93 02 65.80 (3.86) 32.90 - - - 03 214.50

(12.60) 71.50

1998-99 05 148.03 (26.07) 29.61 - - - 02 72.30

(12.73) 36.15 01 19.52 (3.43) 19.52

1999-00 02 52.48 (3.36) 26.24 - - - 05 542.56

(34.77) 108.51 02 44.38 (2.84) 22.19

2000-01 - - - - - - 02 290.95 (39.89) 145.48 - - -

2001-02 - - - - - - 01 51.03 (4.90) 51.03 01 7.65 7.65

2002-03 02 42.95 (9.96) 21.48 01 15.60

(3.61) 15.60 01 33.71 (7.81) 33.71 01 217.09

(50.31) 217.09

2003-04 02 101.95 (10.13) 50.97 - - - 02 36.83

(3.66) 18.41 01 196.73 (19.56) 196.73

2004-05 05 2,267.30 (62.70) 453.46 01 307.08

(8.49) 307.08 02 177.12 (4.89) 88.56 - - -

2005-06 02 126.38 (3.06) 63.19 02 263.00

(6.37) 131.50 01 44.57 (1.08) 44.57 02 397.01

(9.62) 198.50

2006-07 01 56.43 56.43 05 1,265.93 (34.18) 253.19 04 484.75

(13.08) 121.18 - - -

2007-08 02 366.17 (1,12) 183.82 02 397.98

(1.22) 04 2,587.83 (7.96) 646.96 3,347.26

(10.29)

2008-09 01 1,096.79 (1.22) 1,096.79 02 1,163.92

(1.22) 581.96 01 1,459.14 (1.22) 1,459.14

Total 28 5,296.03 (8.32) 196.14 15 3,479.31

(5.47) 231.95 25 5,780.79 (9.08) 231.23 11 4,444.14

(6.98) 404.01

Contd..... .

111

Year Keynote corporate Services Ambit Corporate Finance IL&FS Investsmart Lodha Capital

No. of Issues Amount Average

amount No. of Issues Amount Average

amount No. of Issues Amount Average

amount No. of Issues Amount Average

amount

1997-98 01 4.33 4.33 - - - - - - - - -

1998-99 02 6.52

(1.14)

3.26 - - - - - - - - -

1999-00 02 10.07 5.03 - - - - - - 01 78.23 (5.01) 78.23

2000-01 01 6.00 6.00 - - - 01 40.47 (5.55) 40.47 01 41.80

(5.73) 41.80

2001-02 01 46.80 (4.49) 46.80 - - - - - - -

2002-03 - - - - - - - - - - -

2003-04 04 32.14 (3.19) 8.03 01 199.77

(19.86) 199.77 - - - - - -

2004-05 03 69.04 (1.90) 23.00 01 213.85

(5.91) 213.85 02 125.32 (3.46) 62.66 01 59.19

(1.63) 59.19

2005-06 06 160.08 (3.87) 26.67 - - - 02 135.70

(3.28) 67.85 - - -

2006-07 04 138.57 (3.74) 34.64 - - - - - - - - -

2007-08 03 37.56 12.52

2008-09 04 139.11 (3.74) 34.78 03 711.93

(3.74) 237.31

Total 31 650.22 (1.02) 20.97 05 1125.55

(1.77) 225.11 05 301.49 (1.63) 60.30 03 179.22

(0.97) 59.74

Contd.....

112

Year Karvy Investors Service Other Merchant Banks Total

No. of Issues

Amount Average amount

No. of Issues

Amount Average amount

No. of Issues

Amount Average amount

1997-98 - - - 28 141.46 (8.30) 5.05 40 1,463.64

(85.95) 36.59

1998-99 - - - 10 42.15 (7.42) 4.21 20 288.52

(50.84) 14.43

1999-00 - - - 9 103.97 (6.67) 11.55 21 831.68

(53.30) 39.60

2000-01 - - - 18 234.86 (32.19) 13.04 23 614.08

(84.19) 26.70

2001-02 01 27.47 (2.63) 27.47 04 39.51

(3.80) 9.88 08 172.46 (16.57) 21.556

2002-03 01 36.00 (8.34) 36.00 05 78.08

(18.10) 15.61 11 423.43 (98.19) 38.49

2003-04 01 1.96 1.96 08 177.72 (17.68) 22.21 19 746.86

(74.26) 39.31

2004-05 02 12.95 6.48 05 109.77 (3.01) 21.95 22 3,341.62

(92.41) 151.89

2005-06 02 48.70 (1.18) 24.35 15 478.89

(10.32) 30.42 32 1,654.33 (40.10) 51.7

2006-07 02 30.09 15.04 18 434.77 (11.74) 24.15 34 2,410.54

(65.09) 70.9

2007-08 - - - 12 3,824.92 (11.76) 318.74 24 10,561.72

(32.48) 440.07

2008-09 - - - 08 295.67 (0.46) 36.96 19 4,866.56

(38.56) 256.13

Total 09 157.17 (0.85) 17.46 140 5,879.59

(9.24) 42.41 273 27,375.44 (434.03) 100.27

Note: - Figures in parentheses show percentage of total amount mobilised through rights issues Source: - Compiled from Letters of offer of issuing companies, SEBI Website and Prime database.

115

Table 4.17 Foreign Merchant Banks as Lead Managers in Rights Issues

(Amount in Rs. crore)

Year

Merchant Banks

J M Morgan Stanley DSP Merrill Lynch HSBC Securities Citi Bank N.A. Ind Global Corporate Finance

Others Total

No. of Issues

Amount Average amount

No. of Issues

Amount Average amount

No. of Issues Amount Average

amount

No. of Issues

Amount Average amount

No. of Issues

Amount Average amount

No. of Issues

Amount Average amount

No. of Issues

Amount Average amount

1997-98 3 84.18 (4.94) 28.06 - - - 3 49.71

(2.92) 16.57 1 59.52 (3.49) 59.52 - - - 2 45.97

(2.70) 22.98 9 239.38 (14.05) 26.6

1998-99 1 13.25 (2.33) 13.25 2 232.93

(41.04) 116.47 1 9.84 (1.73) 9.84 - - - 2 23.02

(4.05) 11.51 - - - 6 279.04 (49.16) 46.51

1999-00 1 187.86 (12.04) 187.86 2 239.53

(15.35) 119.76 2 156.72 (10.04) 78.36 - - - 1 68.32

(4.38) 68.32 1 76.12 (4.87) 76.12 7 728.56

(46.70) 104.08

2000-01 - - - 1 90.93 (12.46) 90.93 - - - - - - 3 24.4

(3.34) 8.13 - - - 4 115.33 (15.81) 28.83

2001-02 2 704.45 (67.65) 352.22 - - - 1 88.01

(8.85) 88.01 - - - 2 76.34 (7.33) 38.17 - - - 5 868.8

(83.43) 173.76

2002-03 - - - - - - - - - - - - 1 7.83 7.83 - - - 1 7.83 (1.81) 7.83

2003-04 - - - 1 154.23 (15.33) 154.23 - - - 1 77.45

(7.70) 77.45 1 27.28 27.28 - - - 3 258.94 (23.03) 86.31

2004-05 3 226.56 (6.26) 8.83 - - - - - - 1 47.82

(1.32) 47.82 - - - 4 274.38 (7.59) 68.59

2005-06 2 1,240.13 (30.05) 620.07 2 1,231.36

(29.84) 615.68 - - - - - - - - - 4 2,471.49 (59.90) 617.87

2006-07 1 671.79 (18.14) 671.79 3 621.17

(16.77) 207.05 - - - - - - - - - 4 1,292.96 (34.91) 323.24

2007-08 4 5,499.49 (16.91) 1,375.87 1 6,549.73

(20.14) 6,549.73 1 6,392.12 (19.65) 6,392.12 168.2 3,347.44

(10.29) 3,347 6 21,956.80 (67.52) 3,659.47

2008-09 2 1,484.44 (11.76) 742.22 1,009.54

(8.00) 2,045.99 (16.21) 1 159.94

(1.27) 159.94 1 3,055.54 (24.20) 4 7,755.44

(61.44) 1,938.86

Total 19 10,112.15 (15.89) 594.83 12 10,129.42

(15.92) 844.12 7 304.28 (1.65) 43.47 4 8,622.90

(13.55) 2,155.72 11 555.15 (0.87) 50.47 4 6,525.05

(10.25) 3,347.26 57 36,248.95 (56.97) 635.95

Note: - Figures in parentheses denote percentage of total amount mobilised through right issues Source: - Compiled from Letters of offer of issuing companies, SEBI Websites and Prime database.