IPO News in India: The initial public offering (IPO) market was buzzing last year, which has benefited the investment bankers the most. In the year 2021, an amount of Rs 1.2 lakh crore or $ 16.6 billion has been raised through 63 IPOs led by new technology companies. An industry report said that during this period, investment bankers have raised fees of $ 1.1 billion amid the boom in the IPO market. This is the highest figure for advisory fees collected in a single year.
Companies raised $16.6 billion from IPO
Last year, companies raised a record $16.6 billion through IPOs. The previous record was $10.8 billion in 2017. In the last year, where the number of IPOs has more than doubled. At the same time, the amount raised from the IPO has more than four times. This report has been prepared by Refinitiv, a unit of the London Stock Exchange Group. It is one of the largest companies providing financial market data in the world.
All eyes are on LIC’s IPO
It has been said in the report that this trend of bullishness in the IPO market will continue in 2022 as well. LIC’s IPO is to come this year, on which all eyes are on.
bumper earnings through banking activities
The report says that $1.1 billion has been earned in 2021 through investment banking activities. This is 8.5 percent more than in 2020. This is the highest figure since the beginning of its record keeping in the year 2000.
‘Underwriting’ fee increased by 49.7 percent
According to the report, the equity capital market ‘underwriting’ fee in the total fee increased by 49.7 per cent to $433.8 million as compared to 2020. At the same time, for the bond market, it was down 24.4 percent to $ 164.8 million. Overall, $35.6 billion was raised in the equity market in 2021, which is 4.3 percent less than the previous year.
SBI Capital’s total investment is 7.8 percent
$18.6 billion was raised through subsequent issuances (FPOs), a decrease of 42.8 percent compared to 2020. Subsequent issues accounted for 52 per cent of the total amount raised by equity capital markets. The report said that among investment bankers, SBI Capital accounted for 7.8 per cent of the total investment banking charges. It raised $869 million in associated fees.