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Investment bankers laughed all the way to their banks as fee income hit a new record of $1.3 billion in 2023, up 28% from the previous year.
Estimated fees will be $1.3 billion in 2023, an increase of 28% from last year and the highest amount since records began in 2000, according to data compiled by LSEG Deals Intelligence (formerly Refinitiv). It became.
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Investment bankers’ fee income increased due to higher equity and debt issuance volumes, which offset a significant decline in trading activity.
State Bank of India topped the investment banking fee chart by collecting $102.7 million, representing 7.7% of the country’s total investment banking fee pool, the agency said.
In the fee income graph, mergers and acquisitions (M&A) contributed $416.1 million, down 7% year over year. The agency said the value of the deal plunged by 51% in 2022.
The second-highest source of fees was fees from equity capital markets (ECM) underwriting, which rose 68% from 2023 to $343.5 million.
ECM activities collected $31.2 billion in 2023, an increase of 59.6% from 2022, with the latest collection being the highest since 2021.
ECM offerings also increased by 48.9% year over year. ECM Mart raised $24.4 billion, an increase of 105.1% year over year, driven by follow-on products, accounting for 78% of total ECM revenue, and sales volume increased by 39.8%.
The agency said IIFL Holdings had total revenue of $3.7 billion, accounting for 12% of the total market, and topped the ECM underwriting fee rankings, although it did not disclose how much IIFL collected in underwriting fees.
There were more than 240 initial public offerings and offerings during the year, with 59 issues on the main board alone worth about 54,000 rupees, setting a record of sorts, with an increase of 17% compared to the previous year in value terms. Diminished.
Meanwhile, debt capital markets (DCM) underwriting fees totaled $247.3 million, an increase of 23% year over year.
Syndicated lending fees increased 70% year over year, generating $325 million.
In the same year, M&A fell by 50.6% from the previous year to $83.8 billion, the lowest level in three years. Of this, M&A targeting India reached $76.4 billion, a decrease of 51.5% from the previous year, the lowest amount of the year. became. From 2020.
Domestic M&A totaled $51.8 billion, a decrease of 56.4%.
Inbound M&A fell by 36.4% to $24.6 billion, the lowest level since 2015, while outbound M&A fell by 40.4% to $5.9 billion, with the US being the most targeted country with a market share of 22.6%.
Its first bond issue in 2023 raised $85.1 billion, with revenue up 25.5% and the highest since 2019.
Financial sector issuers captured 76.7% of the market share and raised $65.3 billion, an increase of 41.3%.
According to the agency, ICICI Bank topped the ranking in underwriting bonds worth $12.9 billion, accounting for 15.2% of the market share.
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