India saw an unprecedented wave of initial public offerings in 2025, raising nearly Rs 1.95 trillion and giving banks a record $417 million in underwriting fees.
Record IPO Activity in 2025
Companies listed on Indian exchanges pulled in about Rs 1.95 trillion, beating the previous year’s high of Rs 1.73 trillion. The jump was driven by more retail investors, steady demand from institutions, and rules that made it easier for firms to go public.
Bank Earnings Reach New High
Strong deal flow stopped years of fee‑cutting wars and let banks charge higher commissions. On average, banks earned 1.86% of the deal value, up from 1.67% a year earlier.
- Axis Bank topped the list with $34.3 million in fees.
- Citi earned $27.1 million.
- JM Financial collected $25.6 million.
- JPMorgan made $22.6 million.
- Motilal Oswal Financial Services saw its fee income grow almost fourfold.
- Other notable earners included Morgan Stanley and State Bank of India.
Why Fees Are Still Low by Global Standards
Even with the record haul, Indian underwriting fees remain cheaper than many markets. For example, the typical fee in Hong Kong sits around 1.5%, while India’s average is now about 1.86%.
What Might Happen Next?
Analysts expect fee percentages to edge higher if more standardized IPOs hit the market this year. A steady pipeline could also reduce the need for aggressive discounting, helping keep pricing discipline intact.
Remember, this is perspective, not prediction. Do your own research before making any investment decisions.