The explosion in the number of initial public offerings in India in 2021 helped investment bankers raise a record $ 1.1 billion in advisory fees, according to a report.
In 2021, 63 companies, including many new-age startups, entered the capital market and raised 1.2 trillion rupees ($ 16.6 billion), eclipsing the previous record of $ 10.8 billion in 2017, according to a report from Refinitiv, a London stock exchange. Subsidiary of the group.
The report says fees of $ 1.1 billion collected through investment banking activities are 8.5% higher than in 2020, and the highest since the record began in 2000. The number of Initial stock offerings more than doubled from 2020 and revenue was four times higher than last time. year.
Many of the companies that got big deals in the capital markets were new-age startups. They included online food delivery company Zomato, which reached a market cap of Rs1 trillion in hours of trading, and online fashion brand Nykaa, whose initial public offering was subscribed. 7 times.
Nykaa founder Falguni Nayar, who owns 54% of the company’s capital, has become India’s richest self-made billionaire woman. Nykaa also achieved the rare distinction of becoming the first Indian unicorn to be ruled by a woman.
Nayar is a former investment banker who started entrepreneurship at the age of 50.
One 97 Communications, the parent company of financial technology firm Paytm, offered the largest initial sale of shares in the Indian company’s history, but sales fell below expectations. However, it was still subscribed 1.89 times.
Among investment bankers, SBI Caps took the top spot in investment banking fees with a 7.8% portfolio share and $ 86.9 million in related fees, according to the report.
ICICI Bank leads the underwriting fee rankings in the equity market with $ 3.9 million of related products and a 10.8% market share, followed by JP Morgan and Axis Bank who respectively held 10, 5% and 8.6% market share. Axis Bank topped the bond rankings, underwriting 108 issues worth $ 9.7 billion and had a 16.6% market share.
Overall, equity capital markets raised $ 35.6 billion in 2021, down 4.3% from 2020, despite volume growth of 73.6% as deals closed on smaller values.
The trademark of the year was the massive response from retail, with the average number of retail applications rising to 1.43 million, up from 1.27 million in 2020 and 405,000 in 2019.
With benchmark interest rates low, many first-time amateur investors have flocked to the capital markets. Brokerages and lenders have witnessed a wave of Demat account openings, to trade in the stock markets, and many of these investors were from small towns.