Investment bankers handling Zomato Ltd’s ₹9,375 crore initial public offering (IPO) earned ₹229 crore in fees, the food delivery unicorn’s final offer documents showed, making it one of the biggest payouts for any Indian IPO. According to data from primary market tracker Prime Database, the fees paid by Zomato to the five bankers far exceeded every other ₹5,000-crore-plus IPO. In comparison, investment banks earned ₹97.34 crore from Gland Pharma’s ₹6,479.5 crore IPO in November, ₹90.85 crore from ICICI Prudential Life Insurance’s ₹6,056.79 crore IPO in 2016, and ₹85.25 crore from Blackstone-backed Sona BLW Precision Forging Ltd’s ₹5,550 crore IPO in June. View Full Image Big bucksOther larger issuances such as SBI Cards and Payment Services Ltd’s ₹10,340.79 crore IPO saw banks earn only ₹48.34 crore, while HDFC Life Insurance Co Ltd’s ₹8,695 crore IPO got them only ₹35.61 crore. To be sure, the IPO fee is not equally distributed among the five bankers, as IPOs with several bankers have a two-tiered payout model.

Source: Mint July 22, 2021 18:56 UTC