A Close Look into the Matter
According to Refinitiv, India’s investment banking industry has collected Rs. 2,200 crores through a series of big-ticket IPOs. The listing of some of the major Indian unicorns last year has enabled a massive increase in income. The fees that investment bankers collected from IPOs and share sale proceeds in 2021 are around thrice than that of 2020. The 2020 earnings of the investment banking industry stood at Rs. 776.7 crores.
Despite economic uncertainties arising from Covid, the market witnessed great interest from both retail and institutional investors. These investors actively participated in the public offerings floated by various companies, including tech start-ups and digital platforms.
Indian bankers have focused on sharpening their expertise along with strengthening their teams to serve their clients looking to go public. However, some experts believe that the fees of Indian investment bankers are lower as compared to those charged by their global peers.
Some Top IPOs of 2021
India saw a series of initial public offerings by some of the top companies in 2021, which included the following:
- Paytm’s parent company One97 Communications
- Sona BLW
- Fino PayBank
- Clean Science
- Aditya Birla Sun Life AMC
- MTAR Technologies
- Easy Trip
- Laxmi Organic
- Nazara Technologies
- Kalyan Jewellers
According to Utpal Oza, the head of investment banking of Nomura India, investment banks of the country were benefitted from deal-making and equity placements of new-age digital companies. The increased activity in India’s equity capital markets has been the main catalyst behind this rise in income of investment bankers.
Notably, eight start-ups debuted on the stock market in 2021. Zomato was the first new-age technology company that went public in 2021. Zomato IPO was a huge success with nearly 40 times subscription. On the other hand, cosmetics retailer Nykaa has been subscribed 81.7 times, helping it to get a market cap of almost $13 billion.
The massive boom in fundraising and public offerings in India was possible due to several factors. These factors included collective optimism about the potential of the Indian economy, supportive policies and regulations for tech start-ups, and high domestic and global liquidity.
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Source: Economic Times
Frequently Asked Questions
- How much was raised through IPOs in 2021?
India saw as much as $16.59 billion in funds raised through 120 IPOs in 2021.
- How much did Asia-Pacific raise through equity offerings in 2021?
Asia-Pacific region, not including Japan, raised around $506.9 billion through equity and equity-related offerings in 2021. This has been a 20.7% jump as opposed to 2020.