India IB Fees Hit Record $1.3B; Jefferies, Morgan Stanley Lead Charge

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AuthorVihaan Mehta|Published at:
India IB Fees Hit Record $1.3B; Jefferies, Morgan Stanley Lead Charge
Overview

India's investment banking sector shattered records in 2025, raking in $1.3 billion in fees fueled by a robust IPO and M&A market. American firm Jefferies claimed the top spot, earning $98.9 million, a remarkable climb from previous years. Morgan Stanley and JP Morgan also saw significant gains, as international banks increasingly captured market share in high-value deals.

India's investment banking sector is on a record run, with fees surging to $1.3 billion in 2025, according to LSEG data. This boom was primarily fueled by a surge in initial public offerings (IPOs) and mergers and acquisitions (M&A).

Jefferies Leads League Table Amid Foreign Bank Surge

American firm Jefferies topped the league table, amassing $98.9 million in fees. This marks a significant ascent from its fourth-place ranking in 2024, where it earned $70 million. In just five years, Jefferies climbed from 26th place in 2021, collecting a mere $12 million.

Morgan Stanley followed closely with $85 million in fees, while JP Morgan secured third place with $81 million. Both institutions saw substantial gains from their 2024 positions.

ECM Dominates Deal Flow, Overtaking M&A

Equity Capital Markets (ECM) contributed the largest share of fees, totaling $656 million. This segment was powered by a strong IPO wave and block trades. M&A advisory followed with $396 million, and debt capital markets (excluding loan syndication) generated $246 million. ECM has now led the fee pool for two consecutive years, surpassing M&A advisory which historically held the top spot.

Domestic Lenders Face Increased Competition

The 2025 rankings present a sharp contrast to 2024, when domestic lenders Kotak Mahindra, ICICI, and Axis Bank led the league table. Large-ticket ECM deals attracted greater participation from international banks, allowing them to capture a disproportionate share of fees. This shift highlights the growing influence of foreign institutions in India's high-value financial transactions.

Banks are expanding teams to manage the robust deal pipeline, despite differing bonus cycle structures between foreign and local institutions.

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