Kopar Khairane

Investment Bankers Project $968 Million in Fee Revenue Between January and September 2023

<p>Despite a sharp decline in transactions, investment bankers laughed all the way to the bank in the first nine months of 2023, with fee revenue up 41% year over year to USD 967.5 million. Since statistics have been kept in 2000, this is the greatest fee collected by deal makers.<img decoding=”async” class=”alignnone wp-image-237261″ src=”https://www.theindiaprint.com/wp-content/uploads/2023/10/theindiaprint.com-mcap-of-six-of-top-ten-companies-increases-by-rs-70527-11-billion-reliance-industr.jpg” alt=”theindiaprint.com mcap of six of top ten companies increases by rs 70527 11 billion reliance industr” width=”1160″ height=”652″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2023/10/theindiaprint.com-mcap-of-six-of-top-ten-companies-increases-by-rs-70527-11-billion-reliance-industr.jpg 299w, https://www.theindiaprint.com/wp-content/uploads/2023/10/theindiaprint.com-mcap-of-six-of-top-ten-companies-increases-by-rs-70527-11-billion-reliance-industr-150×84.jpg 150w” sizes=”(max-width: 1160px) 100vw, 1160px” title=”Investment Bankers Project $968 Million in Fee Revenue Between January and September 2023 6″></p>
<p>Between January and September 2023, completed M&A advisory fees increased by 34% year over year, reaching USD 362 million, while ECM (equity capital market) underwriting fees increased by a more pronounced 38%, to USD 194.3 million, according to Refinitiv, a division of the LSEG (London Stock Exchange Group).</p>
<p>In the first nine months of 2023, syndicated lending fees increased by 56 percent to USD 229.5 million, according to Lucille Jones, an analyst at LSEG. The total fee income for the sector during the period also increased by 41 percent to USD 967.5 million. Debt capital market (DCM) underwriting fees totaled USD 181.7 million, up 41% from a year ago.</p>
<p>With a total of USD 58.6 million and 6.1% of the wallet share of the i-banking fee pool, local operations of Wall Street giant Citi earned the top spot for overall investment banking fees. The number of transactions increased by 3% year over year even as India-bound M&As plunged by 56.6% to a three-year low of USD 65.6 billion in the first nine months of 2023.</p>
<p>Similar to this, India-focused M&As totaled USD 60.5 billion, a decrease of 56.8% from the prior year and the lowest first nine months by value since 2020. Domestic M&As cost $44.1 billion in total, a decrease of 59.7% over the same time in 2022. Outbound M&As reached USD4.8 billion, down 46.5 percent on-year, with the US being the most targeted country with a 24.6 percent market share. Inbound M&As were USD16.4 billion, down 46.6% from a year earlier.</p>
<p>The financial sector, with USD30.6 billion in sales but a value decline of 55.9%, and the industrials, with USD7.7 billion in sales but a value decline of 32.4% and a market share of 11.7%, received the majority of the deal-making activity involving India. High technology, which had the most agreements announced during the time and had deals worth USD 5.9 billion, down 71.7% from the previous year, took 9% of the market.</p>
<p>The value of private equity-backed M&As was USD11.1 billion, which is a decrease of 58.1 percent from a year earlier and the lowest first nine months since 2020. In the first nine months of 2023, equity capital markets (ECM) raised USD 18.4 billion, up 34.4% from the same period the previous year. 253 stock and equity-linked issuances were made as part of ECM offers, a rise of 30.4% over the previous year.</p>
<p>Initial public offerings (IPOs) in the ECM sector garnered USD3.5 billion over the first nine months, a decrease of 38.1% in proceeds, but a 35.2% increase in the number of IPOs. The total amount raised through follow-on offers, which made up 81% of the total ECM revenues, increased by 86% year over year to $14.9 billion. The quantity of follow-on offerings also increased by 24.4%. The bulk of the activity was accounted for by ECM issuance by the banking sector, which had a 19.8% market share and issued 3.6 billion USD, a 6.2% year-over-year decrease. High technology and materials came in second and third, with a combined market share of 11.5 percent and 11.2 percent for industrials and high technology, respectively.</p>
<p>With USD2.3 billion in related proceeds and a 12.4% market share, Jefferies is ranked first in the ECM underwriting sector. The main bond market saw USD65.1 billion in revenues from offers over the first nine months, a 39.3% gain, making it the largest first nine-month period since 2019.</p>
<p>The market share for issuers in the financial sector was 78% at USD 50.8 billion, up 61.6%, while the market share for industrials was 5.6% at USD 3.7 billion, up 86.3%. With linked proceeds of USD 10.96 billion and a 16.8% market share, ICICI Bank is ranked first for bond underwriting.</p>

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