For one of India's most watched IPOs in years, NSE appointed about 20 banks and, according to an exchange filing, the total payout to them came to 1.86 billion rupees, equal to $19.4 million. The lead group featured Kotak Mahindra Capital Co., JM Financial Ltd., Morgan Stanley, HSBC Holdings Plc, Citigroup Inc., and JPMorgan Chase & Co.
The payout worked out to about 0.82% of the deal size. That is higher than the roughly 0.65% level discussed before the float, yet still well under the 1.86% average rate Indian issuers paid last year, according to LSEG data.
Investors showed up. The IPO drew total bids 5.7 times the shares available, with the institutional book doing the heavy lifting at 12.7 times its allocation, per BSE Ltd.'s website. Fees on other big Indian listings have swung widely: Life Insurance Corp. of India and NTPC Green Energy Ltd. spent about 0.58% and 0.54% of their issue sizes, while private-sector names typically shell out more. In 2024, Hyundai Motor India Ltd. shelled out roughly 4.93 billion rupees - equating to 1.77% of its record-setting offer size, and LG Electronics India Ltd. paid about 1.94%.
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Lower relative fee take and strong institutional demand can shape how future IPOs are priced and allocated. If you follow new issues, track both the cost of bringing companies public and who is driving the order book.
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