Core Insights - India's IPO market experienced a record boom in 2025, with companies raising approximately Rs 1.95 trillion, surpassing the previous year's record of Rs 1.73 trillion, driven by a growing base of retail investors, sustained institutional demand, and regulatory efforts to facilitate listings [3][6] - The total fee pool for investment banks reached $417 million, with average underwriting fees climbing to an all-time high of 1.86% of deal value, up from 1.67% the previous year, indicating a shift from India's previous low-fee reputation [6][4] - Major players in the IPO advisory space included Axis Bank, which earned $34.3 million, followed by Kotak Mahindra Bank at $32.7 million, and IIFL Capital Services at $30.2 million, reflecting significant growth in fee income [5][6] Fee Trends - The increase in deal flow has reversed years of fee compression caused by intense competition among banks, which previously led to aggressive fee discounting [4][6] - Analysts predict that fee rates may continue to rise if a larger share of standardized IPOs enters the market, potentially restoring pricing discipline [6] Market Position - Despite the record earnings, India remains relatively inexpensive for issuers, especially for large offerings, compared to global standards [5][6] - Citi, JM Financial, and JPMorgan were among the top global banks in underwriting fees, earning $27.1 million, $25.6 million, and $22.6 million respectively, highlighting the competitive landscape [5][6]