Top 10 Merchant Bankers in India

Who can be a Book Running Lead Manger (Merchant Banker) ?

Merchant Bankers in India are involved in financial transactions that include fund raise activities, portfolio management and other activities. They operate as an intermediary between the Issuer and the Investors. SEBI (Merchant Bankers') Regulation Act, 1992 regulates the functions of merchant banking in India. An organisation has to obtain a certificate of registration to act as a merchant banker. 

 

What is the role of Merchant Banker and services provided?

Underwriting- It usually involves assessing financial risk and quantifying the risk for a loan or an investment.

Portfolio management- Managing the portfolios 

Raising funds through IPO, Mainboard and SME IPO- For fund raise through SME IPO and Mainboard IPO, the top merchant bankers have a crucial role to play.

Restructuring, mergers and acquisitions- Structuring the deals for mergers and acquisitions

Project Finance- Credit Financing from banks and financial institutions

Other Services like leasing

 

Here are some factors to consider for selecting the best Merchant Bankers in India

Market Share/No. of IPOs- A higher number of successfully managed IPOs usually reflects strong market presence and reliability.

Listing Gains- A merchant banker with a track record of strong listing gains can help companies achieve better value when going public.

Subscription- The no. of times an IPO is oversubscribed (demand exceeds the number of shares) is crucial for success of any IPO. Merchant bankers with strong investor base and reputation can attract more investors, increasing the chances of successful subscription.

Success Ratio- The percentage of successful IPOs or financial deals managed by the merchant banker is important factor to be consider while choosing the Merchant Banker. A higher success ratio reflects their ability to close deals efficiently and meet client expectations.

Innovative Solutions- While selecting Merchant bankers one should consider those who offer creative and customized financial solutions, such as innovative fundraising strategies or unique advisory services, can provide a competitive edge to businesses.

Post Listing Performance- After a successful IPO, it is also important to guide the client for the next steps to be taken for a smooth transition, this measures how well companies perform in the stock market after being listed. Merchant bankers with a track record of IPO performance post-listing demonstrate their long-term support and market understanding.

Access to Anchor Investors- Merchant bankers with a strong base of anchor investors (large institutional investors who invest before an IPO opens to the public) can help secure stable and high-profile investors, boosting the IPO’s credibility and success.

Migration to Mainboard- Merchant Banker’s ability to assist SME companies to migrate to the Mainboard can be crucial for long-term growth and value creation.

 

Who are the top merchant bankers?

Major merchant banks in India include large financial institutions such as ICICI Securities, Axis Capital, Kotak Mahindra Capital, SBI Capital Markets, and global investment banks like Goldman Sachs, Morgan Stanley, and JPMorgan Chase etc are the merchant banker as a IPO lead manager.

SME Merchant Bankers include Beeline Corporate Advisors, Corporate Capital Ventures, Hem Securities, Holani Consultants and others. (list of NSE and BSE SME Merchant Bankers in India)

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Why do we need merchant banking in India?

Companies who need funds, strategic arrangements like sell off and buy out needs merchant bankers for their financial transactions. Merchant Bankers provide solution to their corporate clients, facilitates fund raise for SME companies through IPOs on NSE Emerge or BSE SME platforms. Large Merchant Bankers underwrites IPOs on Mainboard.

Rights issues of shares, preferential allotment of shares, private placement of shares and debentures, and other instruments are also undertaken by them. 

Comparison between merchant Bankers 

For comparing the merchant banker on the basis of above points please click on the bellow link Compare Merchant Bankers (ipoplatform.com) where one can compare the various famous Merchant bankers in India. Table showing top Merchant Banker

 

What is the role of IPO Advisor?

IPO advisors can assist a prospective IPO company whether SME or Mainboard to select the top merchant banker by analysing various crucial factors. They also provide insights to choose merchant banker as per their sector coverage and type of investors they would bring in for success of an IPO. The IPO Advisors can provide a set of merchant bankers to work with its pros and cons and the company can choose the right merchant banker as per its suitability. IPO advisors are also known as IPO consultants in India.

IPO advisory assist in regulatory compliances of SEBI by preparing necessary documentation, fair valuation and IPO pricing for value creation of promoters. Post IPO services are also provided for successful navigation of its “new public status”.

 

Conclusion 

In a rapidly evolving market, the expertise and resources provided by top merchant bankers includes underwriting, portfolio management, fund-raising through IPOs (both Mainboard and SME), and strategic advisory for mergers and acquisitions. Ultimately, the presence of merchant banking services in India not only enhances the efficiency of capital markets but also fosters corporate growth and sustainability. By carefully evaluating the right merchant bankers companies can look forward to optimize their financial transactions and ensure successful market entry.