India investment banking charges lowest since 2016 in Jan-March quarter: Refinitiv

The report noted that ECM (equity capital markets) underwriting fees reached $40.9 million, down 43.2% from a year ago, while DCM (debt capital markets) underwriting fees totaled $49.1 million, which is a decline of 43.2%. 23.9% less than a year ago. year since 2016. Full M&A advisory fees fell 17.9% from a year ago and totaled $62.2 million, while syndicated lending fees decreased 52.5% from the comparable period last year and generated $27.4 million in the first quarter of 2022.

“While global deal making fell to its lowest opening period since 2020, the start of the Covid-19 pandemic, India-linked M&A activity saw a strong start as the Q1 period hit a four-year high . Technology and healthcare acquisitions, availability of private equity and abundant cash reserves, as well as historically low interest rates, were the key factors driving M&A growth so far this year,” said LSEG Business, CEO of Refinitiv. Senior analyst Ellen Tan said.

“High technology acquisitions involving India accounted for the majority of the market share with 22% and totaling $6.6 billion, double the amount a year ago, seeing the sector have the strongest start to a year. Private equity deals targeting Indian companies also started at a record pace and amounting to $9.8 billion, high technology sectors captured most of the activity with 28.7% market share. With India’s strong innovative start-up economy, deals in technology and technology-adjacent sectors can continue to drive activity, despite the current challenges brought on by market volatility due to geopolitical tensions,” said Tan. said

The IPO activity across the world has slowed significantly amid market volatility and global conflict, the report said.

“In line with the global trend, India’s IPO activity saw a 57.1% drop in earnings after a record start last year, and a 14.8% year-on-year decline in the number of IPOs. Coming from Life Insurance Corp (LIC) Despite a healthy pipeline including IPOs, the cloud scenario as well as tighter scrutiny on Indian IPOs could curtail activity,” Tan said.