NSE pays 20 banks Rs 186 crore in fees for IPO

National Stock Exchange of India Ltd. paid about 1.86 billion rupees ($19.4 million) in fees to the 20 banks that worked on its $2.4 billion initial public offering, according to an exchange filing.

The payout amounts to about 0.82% of the issue size, highlighting the relatively modest fees bankers accepted to advise on one of India’s most anticipated IPOs in years. While that was higher than the roughly 0.65% indicated before the offering, it is well below the 1.86% average rate paid by local companies last year, according to data compiled by LSEG.

NSE appointed about 20 banks for the offering, with Kotak Mahindra Capital Co., JM Financial Ltd., Morgan Stanley, HSBC Holdings Plc, Citigroup Inc. and JPMorgan Chase & Co. taking key roles. The IPO was subscribed 5.7 times, and demand was mainly driven by institutional buyers who bid for 12.7 times their allotted portion, according to data on BSE Ltd.’s website.


Fees on some of India’s other large listings have varied sharply over the years. Life Insurance Corp. of India and NTPC Green Energy Ltd. paid about 0.58% and 0.54% of their respective issue sizes, while private-sector companies have typically paid more.

Hyundai Motor India Ltd.’s 2024 IPO — the country’s biggest ever — paid about 4.93 billion rupees, or 1.77% of the issue size, while LG Electronics India Ltd.’s listing paid about 1.94%.