Jio IPO delivers smaller payday for bankers than other mega offerings

Mumbai: Mukesh Ambani-backed Jio Platforms’ blockbuster IPO generated a smaller fee pool for investment bankers than several recent large public offerings. The telecom operator paid ₹196 crore in fees to its bankers, equivalent to 0.65% of the ₹30,213 crore issue, India’s largest-ever IPO.

Jio Platforms had appointed 19 bankers for the issue, which was fully subscribed within the first 100 minutes of opening on the first day and received more than 22 times subscription by the close. Its shares are scheduled to list on Wednesday.

Hyundai Motor India, which raised ₹27,859 crore in India’s second-largest IPO, paid ₹493 crore in fees to its bankers, equivalent to 1.77% of the issue size. The NSE‘s IPO, which raised ₹22,563 crore, paid ₹186 crore in banker fees, or 0.83% of the issue size. Large IPOs often command lower fees as a percentage of issue size because of intense competition among investment banks. Yet, such deals remain highly sought after by bankers because they boost league-table rankings and their credentials.

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One 97 Communications and Tata Capital, which raised ₹18,300 crore and ₹15,512 crore, respectively, paid banker fees of ₹324 crore and ₹159 crore, equivalent to 1.77% and 1.03% of their respective issue sizes.

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HDB Financial Services, LG Electronics India and Swiggy paid fees to investment bankers equivalent to 0.83%, 1.94% and 2.42% of their respective issue sizes.