i-banking fee pool jumps 84% in first 9 months

Equity and equity-linked issuance by Indian companies raised a total of $17.2 billion in the first nine months of 2017

Investment banking fees for equity-linked issuances in the domestic market jumped 84.4 per cent in the first nine months of 2017 over a year ago. Investment banks have pocketed fees of $160.7 million (about Rs 1,050 crore) so far this year, compared with $87 million a year ago, data compiled by Thompson Reuters show. The increase in the fee pool has been on the back of a 2.4-fold rise in equity-linked issuances. 

 

Equity and equity-linked issuance (ECM) by Indian companies raised a total of $17.2 billion in the first nine months of 2017, while the number of issuances rose 56 per cent. The ECM issuances this year were 29 per cent lower than that during 2007, the highest first nine-month period in terms of proceeds. A total of $24.2 billion was raised through ECM deals in the first nine months of 2007.  

 

“Kotak Mahindra Bank currently leads the fee rankings for India ECM issuance with $21.4 million in estimated fee revenue, taking up 13.3 per cent of the wallet share this year. Citi ranks second with a 10.1 per cent wallet share, with $16.2 million in fee revenue,” said a report by Thompson Reuters.