India’s investment banking industry has witnessed its best ever year in 2021, as the fee from a series ofrom local initial public offerings have reached an all-time high in 2021.The fee collected by bankers through share sale proceeds was more than three times at Rs 776.7 crore compared with 2020, according to data compiled by Refinitiv.
Atul Mehra, joint managing director and co-head of investment banking at JM Financial told ET that “2021 was a record-breaking year for IPOs and listings despite Covid uncertainties. We evolved, saw vibrant markets on the back of huge interest from institutional and retail investors participating in many good and differentiated companies including digital companies.”
“Bankers have strengthened their team sizes and sharpened their expertise to cater to the diverse IPO mandates. But the fees as a percentage in India are significantly lower than the global fees,” he added.
A little over 110 companies ranging from online grocers to food delivery and beauty startups listed their shares in Mumbai this year, raising almost $16. 59 billion was raised in India in 2021 compared with $3. 64 billion from 44 deals in 2020, the data showed.
Top IPOs in 2021 included those of payments giant Paytm’s parent One97 Communications, CarTrade, Sona BLW, Clean Science, Fino PayBank, Aditya Birla Sun Life AMC, Kalyan Jewellers, MTAR Technologies, Laxmi Organic, Easy Trip and Rakesh Jhunjhunwala-backed Nazara Technologies.
Utpal Oza, head of investment banking at Nomura India, said that investment banks have benefited from robust activity in equity capital markets, equity private placements and deal making in new-age technology companies, increased private equity buyouts especially leveraged transactions. Additionally, domestic consolidation with old economy companies across industries foraying into digital areas.
There are many more share sales lined up for next year in India besides the proposed mega listing by state-owned Life Insurance Corp. of India, which could raise at least Rs 400 billion ($5.3 billion).
