Whalesbook
The Shifting Investment Banking Landscape
India's equity capital markets saw a significant shake-up in 2025, with foreign powerhouses JP Morgan and Morgan Stanley dramatically altering the investment banking league tables. JP Morgan has emerged as the top-ranked Equity Capital Markets (ECM) banker based on fees earned, securing the premier position and ending Kotak Mahindra Bank’s prolonged dominance. Morgan Stanley also made a remarkable comeback, climbing to the second spot.
JP Morgan and Morgan Stanley's Dominance
JP Morgan led the pack by earning $66.9 million in fees, capturing an impressive 10.3% of the total ECM fee pool. The bank's success was fueled by its involvement in several of the year's most significant capital raises. These included acting as the sole bookrunner for Pastel Ltd, part of Singtel, in a Rs 10,300 crore Bharti Airtel promoter stake sale and leading Singtel’s earlier $1.5 billion stake sale in Airtel. Furthermore, JP Morgan spearheaded three major IPOs: Tata Capital's Rs 15,500 crore listing, LG Electronics India's Rs 11,600 crore offering, and Hexaware Technologies' Rs 8,700 crore IPO.
Morgan Stanley demonstrated a powerful resurgence, climbing to second place with $64.6 million in fees. Its strong performance was anchored by prominent roles in key IPOs, including the Rs 12,500 crore issue of HDB Financial Services, LG Electronics India's Rs 11,600 crore listing, and ICICI Prudential Asset Management Company’s Rs 10,600 crore offering. This marks Morgan Stanley's best showing since 2021, significantly improving its seventh-place ranking from the previous year.
Indian Banks Face Challenges
The shift signifies a challenging year for some prominent Indian banks. Kotak Mahindra Bank, which had held the top position since 2021 (barring a brief period in 2023), slipped to third place, earning $49.96 million. While remaining in the top 5, this represents a notable decline. ICICI Bank experienced the most dramatic fall, dropping out of the top 5 for the first time since 2021 and landing in 11th position. The bank earned just $19.9 million, a stark contrast to the $52 million it garnered in 2024.
Market Dynamics and Fee Pool Resilience
Despite a decrease in the overall volume of deals, the total fee pool for India's ECM underwriting remained robust. According to LSEG data, deal volumes decreased to 507 issues, fetching $649 million in fees, compared to 592 issues generating $657 million in 2024. However, this represented significant growth compared to previous years, with 2023 generating $318.4 million from 360 deals and 2022 seeing $175.8 million from 215 deals. This trend highlights a market increasingly driven by larger, higher-fee transactions rather than sheer volume.
Elaine Tan, Senior Manager (deals intelligence) at LSEG, noted that India's ECM underwriting fees in 2025 were broadly steady, with only a marginal 0.7% dip from 2024 levels. This resilience, even as deal counts fell sharply, underscores issuers' growing preference for fewer but substantially larger transactions, which boosts average deal size and fee intensity.
Leadership Changes and Global Context
JP Morgan India's strong performance occurred amidst leadership transitions within its investment banking division. Following Navin Wadhwani's departure as head of investment banking, responsibilities were divided between Nitin Maheshwari and Ravi Shankar. The bank also saw the high-profile exit of its India chief, Kulkarni, who was hired by Citigroup. This domestic momentum mirrors JP Morgan's robust global performance, including its role in marquee transactions like Medline Inc’s $6.26 billion IPO and Alphabet’s acquisition of Intersect.
Impact
This shift in ECM leadership has significant implications for India's capital markets. Indian corporations seeking to raise capital may find increased competition among global and domestic banks, potentially leading to more tailored solutions and competitive fees. The strong performance of foreign banks suggests they are increasingly leveraging their global reach and distribution networks to win major mandates in India. For domestic players like Kotak Mahindra Bank and ICICI Bank, this outcome signals a need to adapt strategies and enhance capabilities to compete effectively in an evolving market landscape. The trend towards larger deals also means that fewer banks may capture a larger share of the market, intensifying competition at the top tiers.
Impact Rating: 8/10
Difficult Terms Explained
- Equity Capital Markets (ECM): This refers to the division of investment banking that helps companies raise capital by issuing stocks (equity) to the public or institutional investors. It includes activities like Initial Public Offerings (IPOs) and follow-on offerings.
- League Tables: These are rankings that evaluate investment banks based on their performance in specific market segments, often measured by the value or volume of deals they manage or the fees they earn.
- Block Trades: A large transaction involving the sale or purchase of a significant quantity of shares in a company, often executed off-exchange or in a single negotiated transaction.
- IPO (Initial Public Offering): The process by which a privately held company first offers its shares to the public, becoming a publicly traded company.
- Qualified Institutional Placements (QIPs): A method for listed Indian companies to raise capital by issuing equity shares or other securities to Qualified Institutional Buyers (QIBs) without extensive regulatory filings required for public offers.
- Follow-on Offerings: The issuance of additional equity shares by a company that is already publicly traded. This can include offerings made by the company itself or by existing large shareholders.