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I-bankers fees: Record IPO transaction makes I-bankers laugh at the bank with highest fees of $ 1.1 billion in 2021

By on January 3, 2022 0
Mumbai: Driven by a historic IPO boom that saw 63 issuers, led by new era tech companies, garnering a whopping Rs 1.2 lakh ($ 16.6 billion) crore in the primary market, investment bankers have poked fun at the bank by collecting $ 1.1 billion in fees over the past year, making it the highest advisory fee ever, according to an industry report . At $ 16.6 billion, initial public offerings (IPOs) set a lifetime record in 2021, surpassing the previous record of $ 10.8 billion in 2017 by a wider margin.

While the number of IPOs more than doubled from a year ago to 63, the proceeds were more than four times the amount raised compared to the same period the previous year and the Momentum is expected to continue as more IPOs are expected next year, with the mother of all shows, the LIC show, expected to grow revenue next year much more, he said.

The report is prepared by Refinitiv, a London Stock Exchange Group (LSEG) company and one of the world’s largest providers of financial market data.

Investment banking activities generated a record $ 1.1 billion in 2021, 8.5% more than in 2020, making it the highest annual period on record since the record began in 2000, according to the report.

Of the total, underwriting fees in equity capital markets reached $ 433.8 million, up 49.7% from 2020, and underwriting fees in debt capital markets totaled 164 , $ 8 million, down 24.4% year-over-year, and the lowest since 2018.

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 follow-up offers, which accounted for 52% of the overall ECM proceeds, raised $ 18.6 billion, again down 42.8%, but in volume they rose 21.4%.

Equity market issuance by financial sector accounted for the majority of activity with a 30.9% market share worth $ 11 billion, down 20.3% year-on-year. the other.

Telecommunications saw revenues increase 46.5 percent and captured a 17.4 percent market share, followed by materials with 11.9 percent market share.

Among I-bankers, SBI Caps took first place in the investment banking fee rankings with 7.8% portfolio share and $ 86.9 million in related fees, according to the report.

From a category perspective, ICICI Bank tops the ECM underwriting commission table with $ 3.9 million in related products and 10.8% market share, followed by JP Morgan and Axis Bank with 10 , 5% and 8.6% market share; and Axis Bank topped the bond ranking of 108 issues valued at $ 9.7 billion and accounted for 16.6 percent of the market share.

Advisory fees on completed mergers and acquisitions increased 6.7% to $ 327.6 million, while commissions on syndicated loans fell 11.1 percent to $ 192.1 million.

On the other hand, the conclusion of agreements has peaked in three years, despite the challenges posed by the pandemic. The report expects the deal’s momentum to continue amid growing investor demand and abundant liquidity as companies reshape their businesses through mergers and acquisitions.

Mergers and acquisitions hit a three-year high of $ 125.7 billion, up 53.7% from 2020. While the average deal value was $ 95 million, up 15, 5%, there were 21 deals over $ 1 billion, with a cumulative total of $ 50 billion, compared to 16 deals worth $ 34.6 billion in 2020.

Domestic mergers and acquisitions amounted to $ 44.9 billion, up 22.6%, led by Piramal Finance which acquired DHFL for $ 4.7 billion, making it the largest operation in the world ‘year.

Inbound mergers and acquisitions nearly doubled (up 93.1%) to $ 69.8 billion, the highest annual period since the record began in 1980.

The United States was the most active foreign acquirer with $ 33.3 billion in transactions.

Outbound mergers and acquisitions peaked in three years at $ 6.9 billion, up 57% from a year ago and Britain was the most targeted country in terms of value by domestic firms with 22 deals worth $ 2.3 billion, or 33 percent of the total, while the United States recorded the most acquisitions with 58 deals worth $ 1.9 billion dollars and 27.4% market share.

The majority of deals were closed in the financial sector at $ 29.8 billion, up 171.3% from 2020, which represented 23.7% of all deals.

Primary bond issuance enabled issuers to raise $ 58.6 billion in 2021, a 20.2% drop in proceeds from 2020, making it the lowest period since 2018, when it was $ 46.2 billion. HDFC’s $ 1.3 billion 10-year bond issue was the largest issue of the year.