Investment banking fee drops 34% to $222 million in Q1 of FY20

The investment banking fee pool shrunk 34 per cent year-on-year to $222 million during the first quarter of 2020. This includes fee generated by activities such as mergers and acquisitions (M&A), equity capital market (ECM), and debt capital market (DCM). 

While the fee generated by ECM activity rose 33 per cent, that from M&A and DCM activity 

fell by 66 per cent and 23 per cent, respectively, according to a report published by Refinitiv. ECM activity was boosted by big-ticket transactions such as $2-billion equity fund raise by Bharti Airtel and $1.4-billion IPO of SBI Cards. 

 

 

Piramal Enterprises’ $510-million rights issue and $575-million equity share sale in Avenue Supermarts were other major ECM transactions during the quarter. Domestic banks topped the league table for investment banking fees. 

Axis Bank pocketed the highest fee, at nearly $19 million, followed by ICICI Bank and SBI, at nearly $18 million each.