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

India’s record Rs 1.95 trillion float in 2025 delivered a $417 million windfall for investment banks as underwriting costs soared to a record high amid a surge in stock prices that boosted bankers’ pricing power after years of cutthroat competition, according to LSEG data cited by Bloomberg.The total fee pool rose alongside a steady increase in average underwriting costs, with bankers earning an average of 1.86% of transaction value, up from 1.67% a year earlier. The rate is now higher than the roughly 1.5% typically found in Hong Kong, Asia’s top financial center, underscoring a gradual shift away from India’s long-standing reputation as a low-cost capital market.

Record entries increase bankers’ paydays

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

The deal flow helped reverse years of fee compression, when fierce competition forced banks to undercut their rivals to win mandates, often at the expense of profitability.

Axis tops the rankingsAxis Bank emerged as the top IPO advisor by fee revenue 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 with $25.6 million and JPMorgan with $22.6 million. Motilal Oswal Financial Services posted the strongest growth, with commission income nearly quadrupling, while Morgan Stanley and State Bank of India rounded out the top earners.

Still at a low cost according to global standards

Despite the record numbers, India remains relatively cheap for issuers, especially when it comes to large issues.

Analysts expect fees to rise as a larger share of more standardized IPOs come to market this year. A strong pipeline of deals could also reduce the need for aggressive rate discounts, restoring pricing discipline across the market.

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