Rs 1.95 trillion IPO boom delivers $417 million payday for Axis, Citi and other bankers

India’s record Rs 1.95 trillion IPO boom in 2025 delivered a $417 million windfall for investment banks, as underwriting fees climbed to an all-time high amid a surge in stock listings that strengthened bankers’ pricing power after years of cut-throat competition, according to LSEG data cited by Bloomberg.

The total fee pool rose alongside a steady increase in average underwriting charges, with bankers earning 1.86% of deal value on average, up from 1.67% a year earlier. The rate now exceeds the roughly 1.5% typically seen in Hong Kong, Asia’s main financial hub, underlining a gradual shift away from India’s long-standing reputation as a low-fee capital market.



Record listings lift banker paydays

India ranked among the world’s busiest IPO markets in 2025, with companies raising about Rs 1.95 trillion, surpassing the previous year’s record of Rs 1.73 trillion, according to data compiled by Bloomberg. The surge was driven by a swelling base of retail investors, sustained institutional demand and regulatory efforts aimed at making it easier for firms to list.

The deal flow helped reverse years of fee compression, when intense competition forced banks to undercut rivals to secure mandates, often at the cost of profitability.


Axis leads the fee league table

Axis Bank emerged as the top IPO adviser by fee income in 2025, earning $34.3 million, according to LSEG data.

Among global banks, Citi earned $27.1 million in underwriting fees, followed by JM Financial at $25.6 million and JPMorgan at $22.6 million. Motilal Oswal Financial Services posted the sharpest growth, with fee income surging nearly fourfold, while Morgan Stanley and State Bank of India rounded out the top earners.


Still low-fee by global standards

Despite the record haul, India remains comparatively inexpensive for issuers, particularly for large offerings.

Analysts expect fee rates to edge higher if a larger share of more standardised IPOs comes to market this year. A strong pipeline of deals could also reduce the need for aggressive fee discounting, helping restore pricing discipline across the market.

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