Despite jump in M&As, IPOs, i-banking fees dip 10% to $438 mn in H1

Mumbai: Notwithstanding a massive spike in equity capital markets deals and a 37.4 per cent jump in M&As in H1 of 2021 at USD 55.1 billion, investment banking fees fell 10 per cent to USD 438 million, making it the lowest first half since 2016, industry data showed.

Overall, SBI Caps has taken the top spot in the investment banking fee league tables with 9.5 per cent wallet share and USD 41.6

million in fees, according to Refinitiv, an LSG group entity, on Monday.

Mergers and acquisitions (M&As) reached a three-year high of USD 55.1 billion in the first half, up 37.4 per cent y-o-y in the first half, Of this, cross-border M&As amounted to USD 21.73 billion across 210 deals, up from USD 16.02 billion across 195 deals, according to Refinitiv.

Investment banking activities generated USD 437.9 million in the first half of 2021, a 10 per cent dip y-o-y, making it the lowest first half period since 2016 when it was USD 263.6 million, according to the Refinitiv data.

Equity capital markets underwriting fees reached more than a decadal high with USD 126 million, a 25.2 per cent increase as IPOs grossed up USD 3.9 billion, more than three times over the amount raised last year. On the other hand, debt capital market underwriting fees were down 34.5 per cent to USD 84.4 million, the lowest first half period since 2018.

Second quarter volume this year grew 6.8 per cent in value and 13.5 per cent by number of announced deals compared to the first quarter of 2021, pushing overall M&As activity to reach a three-year high with USD 55.1 billion in the first half, a 37.4 per cent increase in value from a year ago, Elaine Tan of Refinitiv said.

Domestic companies saw record levels of IPO issuances during the first half totalling USD 3.9 billion, more than triple y-o-y and a healthy IPO pipeline is

expected to retain buoyancy for the rest of the year, including the upcoming IPO from Zomato, Tan said.