When you think of banks, what usually comes to your mind must be a place that the general public relies on to make deposits, withdraw cash, request for loans, etc. These types of banks fall under the category of Commercial Banks.
But there is an entirely different classification of banks that is a part of the investment world, that engages in advisory-based financial transactions on behalf of individuals, corporations, and governments. Such banks that focus on stocks, bonds, and investment products, are known as Investment Banks. Some of the leading global investment banking firms include Goldman Sachs & Co, JPMorgan Chase, Morgan Stanley, etc.
Investment Banking in India
When it comes to investment banking in India, it goes back as early as the 19th century, when European merchant banks first established trading houses in the region. It was mostly foreign banks that dominated the Indian banking activities till the State Bank of India entered the business in the 1970s by creating the Bureau of Merchant Banking.
According to the Association of Investment Bankers of India (AIBI), banking did not have much publicity till the 1980s. It soared up in the 1990s when over 1500 bankers registered with the Securities and Exchange Board of India (SEBI).
Top 10 Investment Banking Companies in India
There are now more than three hundred investment banking companies in India. Here are some of the top contenders in the field:
1. Axis Capital Limited
Earlier known as Enam Securities Private Limited, Axis Capital Limited is part of Axis Bank. It is one of the leading investment banking firms in India, engaged in boutique and mid-market investment banking services. The authorized capital of the company stands at Rs 17500.0 lakhs and has 42.0% paid-up capital which is Rs 7350.0 lakhs.
Year Founded: 2005
2. Avendus Capital
Avendus Capital is an Indian originated investment banking firm that specializes in offering various services in areas like asset management, investment banking, wealth management, and private placement. According to the 2018-19 Annual Report, the company reported a total income of INR 15,137.41 lakhs.
Year Founded: 1999
3. Edelweiss Financial Services Limited
Co-founded by Rashesh Shah, Edelweiss Financial Services Limited is part of the Edelweiss Group. The group provides service to a considerable and diversified client base. From debt capital transactions to asset management, they issue a wide range of assistance. Their total revenue for the fiscal year 2020 is INR 9602.63 Cr.
Year Founded: 1995
4. JM Financial Institutions Securities
JM Financial Institutions Securities have a holistic approach to banking, as they take care of everything from mortgage lending to wealth management and, distressed credit to brokerage services and, portfolio management to asset reconstruction. They are also well known for their private equity services in the business. The firm works with big corporations, high-net-worth individuals, and retail investors. For FY 2020, their total revenue is INR 3453.33 Cr.
Year Founded: 1998
5. ICICI Securities Limited (I-Sec)
I-Sec is an integrated securities firm, that is a subsidiary of ICICI Bank Ltd. The firm imparts advisory services to financial institutions, corporations, and retail investors. Private wealth management, retail broking, institutional broking, and placement of initial public offerings are some of the assistance that the organization provides. Their total income grew from INR 418.22 Cr in FY 2019 to INR 680.46 Cr in FY 2020. INR 1724.94 Cr is the total revenue for FY 2020.
Year Founded: 1995
6. IDBI Capital
IDBI Capital is an investment banking firm that offers a full suite of services and products to its client base. It is a wholly-owned subsidiary of IDBI Bank and assists in investment banking, underwriting, debt placement, capital market products, corporate advisory, and many other domains. It has a net worth of around INR 3 billion and employs over 200 people, across 15 branches in India. They achieved a total revenue of INR 95.57 Cr for FY 2018.
Year Founded: 1993
7. O3 Capital Global Advisory Services
O3 Capital Global Advisory Services is a fully integrated mid-market investment banking firm that caters to retail, institutional and corporate clients. They specialize in corporate finance and wealth management. The firm focuses on sectors like healthcare, life sciences, industrials, and financial services. The company’s authorized capital stands at Rs 125.0 lakhs and has 96.30096% paid-up capital which is Rs 120.38 lakhs. Their operating revenue is anywhere from INR1 Cr – 100 Cr.
8. Veda Corporate Advisors
Veda Corporate Advisors is a service provider that assists clients in transactions related to mergers and acquisitions, private equity, buyouts, venture capitals, and joint ventures. The authorized share capital of the firm is Rs. 250,000 and the paid-up capital is Rs. 134,420.
Year Founded: 2003
9. Unitus Capital
Unitus Capital is India’s first established impact-based investment banking company. It aids in capital raising from early-stage venture capital and initial public offerings.
Year Founded: 2008
10. Spark Capital
Spark Capital is one of the prime mid-market investment banking companies in India. The firm caters to a range of diverse sectors including commerce, fintech, marketplaces, and media sectors.
Year Founded: 2001
The list does not rank in any particular order. Apart from the preceding companies, there are many more ruling Investment Banking firms in India – like MAPE Capital Advisors, Ambit Corporate Finance, etc. Even though the investment banking situation in India is a lot different from that of foreign countries, the market is progressively working its way up.