Sumary of Bankers mop up a tidy sum in fees from Zomato IPO:
- According to data from primary market tracker Prime Database, the fees paid by Zomato to the five bankers far exceeded every other ₹5,000-crore-plus IPO.
- In comparison, investment banks earned ₹97.34 crore from Gland Pharma’s ₹6,479.5 crore IPO in November, ₹90.85 crore from ICICI Prudential Life Insurance’s ₹6,056.79 crore IPO in 2016, and ₹85.25 crore from Blackstone-backed Sona BLW Precision Forging Ltd’s ₹5,550 crore IPO in June.
- “While the fee may look large, one should keep in mind that this was a first-of-its-kind IPO in the Indian market of a leading tech company.
- It needed substantial effort from advisors in preparation of the prospectus and working with the regulator to get approval for the deal as well as extensive marketing in overseas markets to get marquee investors, as is clearly visible from the anchor book of the IPO,” a person aware of the fund-raising effort said requesting anonymity.
- According to financial market tracker Refinitiv, investment banking activities in India generated $437.9 million in the first half of 2021, a 10% drop from the first half of last year, making it the lowest first-half period since 2016 ($263.6 million).