Investment banking in India has seen tremendous growth over the past decade, with investment banking firms playing a crucial role in major M&A and capital raising deals. This article looks at the top investment banking firms in India, their market share, and how they are driving growth in the Indian M&A landscape. With strong economic growth and government reforms opening up more sectors, deal activity has surged, making India one of the top destinations globally for investment banking. We examine the rise of homegrown banks and evolution of the sector amidst entry of global banks.
Top domestic investment banks leading in deal volume
According to data from Dealogic, some of the top domestic investment banking firms in India include ICICI Securities, Axis Capital, SBI Capital Markets, IIFL and Avendus Capital. These firms have maintained leadership in deal volume due to their strong networks and understanding of local regulations and business practices. For instance, SBI Capital Markets retained its top position in FY22 equity issuances due to its unparalleled distribution network being a subsidiary of State Bank of India. IIFL has a dedicated team focused on the mid-market segment, enabling it to win advisory mandates for PE deals and M&A transactions in that space. Avendus Capital has built capabilities in the technology sector, working on deals for unicorns like Oyo Rooms, BigBasket and others.
MNC banks leveraging global expertise
Global investment banks like Morgan Stanley, Goldman Sachs, JP Morgan, Credit Suisse and others have been operating in India for decades. They have leveraged expertise from mature markets to offer services like M&A, ECM and DCM for large corporate deals. Goldman Sachs made a big push under MD Sonjoy Chatterjee to build mid-market investment banking coverage and captured deals like InfoEdge’s $185 million acquisition of iimjobs.com. It is also credited for the rise of startup and new economy deals in India. While earlier foreign banks focused on FII and FPI investments, regulations like doing away with dual advisory structure has opened up more opportunities to gain market share.
Boutique firms carving a niche
Apart from full-service investment banks, boutique firms like Everstone Capital, Singhi Advisors, Signal Hill India have carved a niche with their specialization. For instance, Everstone is focused on the mid-market space and has worked with over 100 companies to drive growth and exits. Singhi Advisors works extensively in the technology sector catering to MNC tech giants and startups alike. These firms operate in specific spaces where they build value differentiating capabilities to compete with larger peers. Their rise indicates that companies value advisors with a strong track record in select sectors or deal types.
Investment banking in India has rapidly evolved over the past decade with the rise of domestic firms and entry of foreign banks. While earlier dominated by foreign banks, homegrown players have rapidly gained market share across ECM, DCM and M&A due to their local expertise. At the same time, increased deal volumes have allowed niche boutique firms to thrive with specialized capabilities.