Key Points
- Hyundai Motor India’s IPO brought in ₹493 crore in fees for investment bankers.
- This marks the largest IPO fee pool in India’s history, beating the previous record held by Paytm.
- The offering ended with a subscription rate of 2.37x, largely thanks to institutional buyers.
- Investment bankers have made ₹2,100 crore from IPOs this year, more than double last year’s total.
- IPO fees typically range from 2% to 3%, depending on deal complexity and market trends.
Looma News
Hyundai Motor India’s IPO has turned into a goldmine for investment bankers, pulling in ₹493 crore. Yes, that’s the biggest payday ever for bankers in the country, smashing the previous record of ₹324 crore set by Paytm back in 2021.
It started off a bit slow, but things really kicked into gear when institutional investors stepped up on the last day, leading to a solid subscription of 2.37 times. This year has been a whirlwind for these bankers. With the Hyundai deal, their total earnings from IPOs have skyrocketed to around ₹2,100 crore. That’s more than double what they made last year, and we’re not even done with the year yet.
What’s cool is that fees are usually linked to the IPO’s size and complexity. Typically, you’re looking at fees between 2% and 3% of the total raised. For huge deals like Hyundai’s, it can drop to 1.5% or even lower. But for those trendy new-age companies? The fees can soar due to the challenges of getting them market-ready.
This year, other notable IPOs like Ola Electric and Go Digit Insurance have also fattened bankers’ wallets, making it a super lucrative time for these finance pros. So, while investors might be feeling the market’s ups and downs, bankers are definitely enjoying their slice of the pie.
