India’s hot IPO market handed investment banks a record Rs 4,100 crore in fees for 2025, thanks to a flood of new listings and bigger fund‑raising sizes.
Why fees jumped so high
More than 100 companies went public this year, beating last year’s record of 91. Total money raised crossed Rs 1.75 lakh crore, up from Rs 1.6 lakh crore in 2024. Bigger deals and more deals meant banks earned higher percentages of the capital raised.
Biggest fee‑paying IPOs
- LG Electronics India – Rs 11,605 crore raise; bankers earned Rs 226 crore.
- Hexaware Technologies – Rs 8,750 crore raise; Rs 215 crore in fees.
- ICICI Prudential AMC – Rs 8,200 crore raise; Rs 187.7 crore split among 18 banks.
- Tata Capital – Rs 15,512 crore raise (largest of 2025); Rs 159 crore to lead managers.
- Groww parent Billionbrains Garage Ventures – Rs 6,632 crore raise; Rs 152 crore in fees.
- Lenskart Solutions – Rs 7,278 crore raise; Rs 129 crore to bankers.
- HDB Financial Services – Rs 12,500 crore raise; Rs 104 crore paid to managers.
How banker fees are calculated
Fees are a percentage of the total amount raised. Typical ranges are:
- 3‑4% for early‑stage tech IPOs that need extra research.
- 2‑2.5% for mid‑size listings (around Rs 200‑300 crore). Banks keep a minimum fee, so the percentage looks higher.
- 1‑1.5% for very large, billion‑rupee deals – the percentage drops but the absolute money stays high.
Tier‑1 vs. Tier‑2 banks
Most IPOs use a mix of banks:
- Tier‑1 banks (e.g., Morgan Stanley, JP Morgan, Citi, Kotak) handle valuation, roadshows, and institutional investors.
- Tier‑2 banks focus on retail and high‑net‑worth investors and help with post‑IPO activities.
What’s next for 2026?
Analysts expect fund‑raising to rise further, possibly reaching Rs 3.5‑4 lakh crore. With a strong pipeline, banks are likely to keep seeing high fee income, even if the exact numbers change.
Remember, this is perspective, not prediction. Do your own research before making any investment decisions.