Jio IPO delivers smaller payday for bankers than other mega offerings
In a landmark move, Jio Platforms, supported by Mukesh Ambani, successfully secured ₹30,213 crore, marking the largest IPO in India’s history. Investment bankers were rewarded with ₹196 crore in fees, translating to only 0.65% of the total amount raised. In contrast, Hyundai Motor India achieved ₹27,859 crore while paying out a heftier ₹493 crore in fees, which amount to 1.77%.
Mumbai: The highly anticipated Jio Platforms IPO, led by Mukesh Ambani, delivered a modest fee haul for investment bankers compared to recent major public offerings. The telecom giant paid ₹196 crore in fees, accounting for 0.65% of the ₹30,213 crore issue, which is India's largest-ever IPO. Jio Platforms engaged 19 investment banks for the deal, which sold out in the first 100 minutes of trading and received a 22-fold subscription by the end of the first day. The company's shares are set to debut on Wednesday.
In comparison, Hyundai Motor India's IPO raised ₹27,859 crore and allocated ₹493 crore in fees, or 1.77% of the issue size, marking India's second-largest offering. The National Stock Exchange's IPO, which raised ₹22,563 crore, paid ₹186 crore in banker fees, representing 0.83% of the issue size. Large IPOs often entice investment banks with lower fee percentages due to fierce competition, but these deals remain highly coveted as they enhance bankers' reputations and rankings.
Other notable IPOs that paid high fees include One97 Communications (₹324 crore or 1.77%), Tata Capital (₹159 crore or 1.03%), HDB Financial Services (0.83%), LG Electronics India (1.94%), and Swiggy (2.42%).
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
