The Indian primary market scaled unprecedented heights in 2025, turning into a massive payday for investment banks. According to the latest data from LSEG and Bloomberg, investment bankers in India earned an all-time high of $417 million (approx. ₹3,500 crore) in fees from Initial Public Offerings (IPOs) alone.
This surge was powered by a record-breaking ₹1.95 trillion ($23.4 billion) raised through public listings, surpassing the previous 2024 record of ₹1.73 trillion.
Why Fees Are Rising: The End of “Low-Fee” India?
For years, India was known as a high-volume but low-fee market for bankers. However, 2025 saw a fundamental shift in pricing power.
- Higher Underwriting Rates: Average underwriting fees climbed to 1.86% of deal value in 2025, up from 1.67% in 2024.
- Beating Regional Hubs: India’s average fee rate has now surpassed the 1.5% typically seen in Hong Kong, reflecting the high demand for Indian equity mandates.
- Complexity Premium: New-age tech startups and complex “first-of-their-kind” listings commanded higher fees, ranging between 3% and 4%, due to the intensive research and marketing required.
The Top Earners: Who Led the League Tables?
While international banks dominated the total Investment Banking (IB) fee pool (which includes M&A and Debt), domestic lenders held a strong grip on the specific IPO advisory segment.
Top IPO Advisers by Fee Income (2025)
| Rank | Bank | IPO Fee Earnings (USD) |
| 1 | Axis Bank | $34.3 Million |
| 2 | Kotak Mahindra Bank | $32.7 Million |
| 3 | IIFL Capital Services | $30.2 Million |
| 4 | Jefferies | $28.5 Million* |
| 5 | Morgan Stanley | $26.1 Million* |
*Estimated share of total ECM fees specific to IPOs.
Landmark Deals of 2025
Several “blockbuster” offerings significantly contributed to the $417 million pool. The largest fees were often distributed among syndicates of 10 to 18 banks for massive floats.
- Tata Capital IPO: The largest public float of 2025 (₹15,512 crore) paid out ₹159 crore to its lead managers.
- LG Electronics India: This ₹11,605-crore IPO generated the year’s single highest banker payout of ₹226 crore.
- Hexaware Technologies: A major tech listing that delivered ₹215 crore in fees.
- HDB Financial Services: An ₹12,500-crore issue that saw massive oversubscription and high fee margins for its advisors.
Sectoral Trends: NBFCs and Tech Lead the Charge
The diversity of the 2025 IPO market ensured a steady stream of revenue for banks throughout the year.
- NBFC Dominance: Non-Banking Financial Companies accounted for 26.6% of total proceeds, raising ₹635 billion across 24 IPOs.
- SME Explosion: The SME (Small and Medium Enterprise) segment saw over 200 listings, which, while smaller in size, often carry higher percentage-based fees (up to 5%).
- Tech Resilience: Despite market volatility, fintech and SaaS companies like Groww, Pine Labs, and Capillary Tech successfully tapped the markets.
Outlook for 2026
With a pipeline of over 50 companies already holding SEBI approval for 2026, including the highly anticipated NSE IPO, investment bankers are expected to maintain their pricing power. Analysts predict that if the current momentum continues, IPO fee income could breach the $450 million mark in the coming fiscal year.
