Bank of America Merrill Lynch (BofaML) has pipped Citi to top the equity league table of investment bankers with a market share of 38.5% for the first nine months of the year.
The investment bank has managed issues worth R11,117 crore, garnering over R100 crore in fees, Bloomberg data shows.
BofaML is followed by Citi and JM Financial with a market share of 8% and 7.3%, respectively. In terms of fees, BofaML is followed by Citi (R46 crore), HSBC Bank (R28 crore), Kotak Mahindra Bank (R26 crore) and State Bank of India (R22 crore). Of the 41 merchant bankers that managed issues this year, only nine managed to rake in fees in double digits.
A total of 82 issues worth R288.6 crore were managed in the first nine months this year compared with 200 issues worth R659 crore managed in the same period last year.
Last year it was Citi that occupied the top slot with a market share of 19% and fees of R51 crore. However, in 2010, two other domestic merchant bankers garnered more by way of fees ? Kotak Mahindra Bank made R97 crore while Enam Securities raked in over R85 crore.
Bank of America Merrill Lynch could make only Rs 21 crore in 2010. Other bankers that made managed to rake in a sizeable amount include IDFC Capital (R41 crore), Credit Suisse (R35 crore), State Bank of India (R29 crore), Morgan Stanley (R29 crore) and JM Financial (R27 crore).
Except for the share sale of L&T Finance (R1,245 crore), Power Finance Corporation (R4,578 crore) and Tata Steel
(R3,477 crore), big-ticket issuances have been conspicuous by their absence this year owing to uncertain market conditions. The BSE Sensex has shed about 17% in the year to date.
Also, the government?s divestment target for this fiscal is not going as planned. The follow-on public offering (FPO) of ONGC has been postponed several times. The ONGC issue is expected to fetch around R11,500 crore.