{"id":32953,"date":"2018-10-29T17:41:42","date_gmt":"2018-10-29T12:11:42","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=32953"},"modified":"2018-10-29T17:41:42","modified_gmt":"2018-10-29T12:11:42","slug":"indias-record-share-sales-bring-banks-little-cheer-in-fees","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/indias-record-share-sales-bring-banks-little-cheer-in-fees\/","title":{"rendered":"India\u2019s record share sales bring banks little cheer in fees"},"content":{"rendered":"<p><a href=\"http:\/\/www.thehindu.com\/business\/indias-record-share-sales-bring-banks-little-cheer-in-fees\/article22261134.ece\">India\u2019s record share sales bring banks little cheer in fees<\/a><\/p>\n<p><strong>Context<\/strong><\/p>\n<p>Funds raised in India through share sales reached the most in a decade this year thanks to booming stock markets<\/p>\n<p><strong>News<\/strong><\/p>\n<p>Funds raised in India through share sales reached the most in a decade this year thanks to booming stock markets, but the rush to raise capital while investor sentiment remained bullish pushed dealmakers\u2019 fee ratio to multi-year lows<\/p>\n<p><strong>Surge in stock index<\/strong><\/p>\n<p>India\u2019s main stock indexes surged almost 30% in 2017 as investors bet on economic reform and corporate earnings recovery. That spurred almost $30 billion worth of share sales including a record $11.5 billion in initial public offerings (IPO)<\/p>\n<p><strong>Low fees for banks<\/strong><\/p>\n<p>But for banks which arrange the sales, fees earned as a percentage of funds raised hit the lowest in four years, Thomson Reuters data showed. That made arranging work in Asia\u2019s third-largest economy the worst paid out of 11 Asian markets<\/p>\n<ul>\n<li>This year was particularly low because a high proportion of deals involved state-run firms which typically pay paltry fees<\/li>\n<li>An increasing number of banks involved in each deal also means fees are being split between more dealmakers, said the ECM head at a multinational bank, who was not authorised to publicly comment on fees and so declined to be identified. There is also a \u201cnew cycle of people willing to go down the fee curve,\u201d the banker<\/li>\n<\/ul>\n<p><strong>What does a low fees signify?<\/strong><\/p>\n<p>Low fees mean regardless of higher deal volumes, many banks \u2014 especially foreign banks with high cost structures \u2014 are not aggressively expanding ECM teams<\/p>\n","protected":false},"excerpt":{"rendered":"<p>India\u2019s record share sales bring banks little cheer in fees Context Funds raised in India through share sales reached the most in a decade this year thanks to booming stock markets News Funds raised in India through share sales reached the most in a decade this year thanks to booming stock markets, but the rush&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/indias-record-share-sales-bring-banks-little-cheer-in-fees\/\">Continue reading <span class=\"screen-reader-text\">India\u2019s record share sales bring banks little cheer in fees<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-32953","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704870639},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/32953","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=32953"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/32953\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=32953"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=32953"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=32953"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}