Smaller i-banks join big-fat IPO party; large players get picky

Many are beefing up their investment banking teams and pitching for deals which otherwise would have gone to larger banks

Bulge-bracket investment banks (i-banks) are getting picky about initial public offerings (IPOs) amid a growing list of companies aspiring to go public.

Sources said large-sized i-banks, both domestic as well as foreign, are taking a selective approach when it comes to opting for mandates, turning down IPOs of less than Rs 1,000-crore in size and focusing on more lucrative deals. This has opened up opportunities for smaller i-banks.

So far this year, more than 70 companies have filed their draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) to raise a cumulative Rs 82,000 crore, according to