Investment bankers earn 68% less advisory fee in first half than previous year

MUMBAI: Investment bankers in India earned 68% lower M&A advisory fee in the first half of this calenders year on account lesser number of deal announced during the period, a study by Thomson Reuters says. The data shows investment bankers earned $ 108 mn in the first half of June 2012, down 68% over comparable period.

Thomson Reuters estimates that Morgan Stanley has earned highest fee of $ 7.2 mn with market share of 6.6%. It was followied by Lazard at $ 6.3 mn fee and share of 5.8% and Jerreries & Co Inc at $ 5.8 mn and share of 5.3%.

The value of announced M&A involving India fell 34% to $ 18.1 bn in the first half. The decline in the deal size could be due to one off deal announced last year such as the Reliance-BP deal valuing US$9.0 bn in early 2011.

Domestic M&A deals valued $7.0 billion, up 58.3% compared to the first half of 2011 at $4.4 billion), the highest since 2010.

Among the Bric countries - Brazil, Russia China and India - as many as 829 inbound M&A deals were announced worth $39.7 billion. India accounted for 20.3% (US$8.1 billion). China saw the highest number of inbound deals among the BRIC nations but captured only 24.2% market share. Russia and Brazil lead the inbound BRIC volume with 29.2% and 25.7% market share, respectively.