SBI Cap to get more active in equity issues, M&As

SBI Capital Markets, the investment banking unit of State Bank of India, has a pipeline of 20 equity issues that it will be managing over the next three to four months, its managing director and chief executive S Vishvanathan said.

The investment bank is also aiming to play a larger role in mergers and acquisitions in 2010 as it intends to leverage its parent's banking relationship with Indian corporate houses.

"SBI Caps was a little quiet last year as the equity market was not very active. Now that we are seeing a potential in the market, we are fully geared up for that and we have a big pipeline ahead of us," told a newswire in an interview late on Tuesday.

In 2009, SBI Caps was involved in five major equity issues that raised Rs13,650 ($3.1 billion). This included mega issues such as that of state-owned National Hydropower Corp Ltd, which raised Rs5,568.75 crore, and privately owned Adani Power, which raised Rs2,806.65 crore.

It is banking on the nearly Rs41,000 crore worth of disinvestments planned by the government in the current fiscal year which started on 1 April.

SBI Caps, which, with Rs1,31,422 crore, topped the league tables in Asia Pacific (excepting Japan) in syndicated loan arrangements in 2009, has been a minor player in mergers and acquisitions so far. "We are not a major player in that but this year our focus is going to be in that area in a major way," Vishvanathan said.

He said the company's ability to do M&As was high, as by virtue of being a loan arranger it had a relationship with every large corporate in the country and could also leverage its parent's banking relationship.