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Investment Banks See Surge in IPO Management Fees
30 Sep
Summary
- Banks earned ₹2,274 crore managing 81 mainboard IPOs in nine months.
- The September quarter alone generated approximately ₹1,600 crore in fees.
- Fee percentages varied widely, from 0.05% to 15.6% of issue size.
Investment banks have experienced a significant increase in earnings from managing mainboard IPOs. During the first nine months of 2026, these institutions garnered fees totaling ₹2,274 crore by facilitating 81 public offerings, raising ₹1.05 lakh crore. This performance shows an improvement over the same period last year.
The primary market demonstrated a strong rebound in the July-September quarter of 2026. This period alone generated approximately ₹1,600 crore in fees for investment bankers, representing the highest quarterly payout since December 2025. During these three months, 54 companies successfully completed their IPOs, raising about ₹83,200 crore.
The fees earned by investment banks have varied considerably, reflecting the diverse nature of IPOs. While some companies paid as little as 0.05% of their issue size for management services, others, like Innovision, paid as much as 15.6%. Industry experts note that fee structures are complex, often including fixed components and Goods and Services Tax (GST), which can influence the perceived percentage of the issue size.
