Total investment banking fees in the country fell 23 per cent to USD 668.4 million in the first nine months of 2022, making it the lowest since 2016, according to a market analysis.
Of the total fees collected by investment bankers, equity capital market underwriting charges almost halved to USD 138.4 million, down 46.4 per cent from a year ago, as per data compiled by Refinitiv.
Refinitiv, an LSEG (London Stock Exchange Group) business, is among the world's largest providers of financial markets data. However, underwriting fees from debt capital market activities fared better and totalled USD 128 million, still down 10.1 per cent from the year-ago period.
Completed M&A advisory fees fell 17.8 per cent year-on-year to USD 252.1 million, while loan syndication fees declined 6.2 per cent to USD 149.9 million in the first nine months of the year.
However, the overall deal-making activities hit a record high at USD 148 billion, surpassing the previous annual record set in 2018 when it was USD 132.2 billion. This was mainly on account of the merger of HDFC with its subsidiary HDFC Bank in a deal valued at USD 60.4 billion, which is the largest domestic deal on record.
The period also saw India overtaking China for the first time since 2008 in private equity-backed acquisitions, making it the busiest-ever period, with the number of announced deals jumping 35 per cent.
By value, India captured a 28 per cent market share of Asia Pacific's PE-backed acquisitions, while China accounted for 24 per cent. This is the first time since 2008 that India accounted for a larger market share than China in Asia Pacific's PE-backed M&A activity, Refinitiv said in a report.
The deal street was led by renewables, as companies focus on transitioning to green assets, clean energy and renewables.
The number of IPOs grew 41 per cent year-on-year, making it the busiest first nine months since 2018. However, the proceeds stood at USD 5.6 billion, 39 per cent lower compared to the year-ago period.
Equity capital markets raised USD 13.5 billion in the first nine months, down 40.8 per cent in proceeds, the lowest period since 2016.
Inbound M&As fell 38 per cent to USD 30.7 billion, while outbound deals reached a four-year high at USD 8.8 billion, up 82.4 per cent year-on-year.