The role of investment bankers has evolved significantly in the Indian Capital Market. They play important roles in corporate restructuring, such as mergers and acquisitions, fundraising, etc. However, their role is not limited to providing advisory services to corporations.
In today’s blog post, we will give you an overview of the top investment banks in India.
Overview of Investment Banking
Investment Banks are a special division of every country which helps individuals and especially corporations in raising capital, and other corporate restructuring. They generally act as a mediator between companies that need capital and the investors.
Fundamentals of Investment Banking
The key fundamentals of investment banking are as follows:
- Shares – Investment Banking firms help companies raise capital through the issue of shares and also help in buybacks of shares from the public. while offering strategic advisory services for mergers, acquisitions, and restructuring.
- Bonds – If a company is looking to raise funds, it can use a debt instrument to raise capital. In it, they generally issue bonds to the public and raise funds from them, and once the purpose is fulfilled, they repay the borrowed amount along with the periodic repayment of interest.
- IPO – An Initial Public Offering is a method through which a company goes public for the first time. This whole process involves the various steps in which an investment banking company helps.
- Merger and Acquisition – When a company buys another company or merges with another company to strengthen its position in the market.
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List of Top 10 Investment Bank Companies in India
- JP Morgan Limited
- Goldman Sachs Limited
- Avendus Capital Limited
- Axis Capital Limited
- Edelweiss Financial Services Limited
- IDBI Capital Limited
- SBI Capital Markets Limited
- ICICI Securities Limited
- JM Financial Limited
- Morgan Stanley Limited
Details of the Top 10 Investment Banking Companies in India
| Company | Incorporation Date | Core Services | Head Office |
|---|---|---|---|
| JP Morgan | 1945 (India’s presence) | Investment & Corporate Banking, Markets, Payments & Custody Services | Mumbai |
| Goldman Sachs | 1869 (Global), India 2006 | Investment Banking, Securities, Asset & Wealth Management | Mumbai |
| Avendus Capital | 1999 | Investment Banking, Wealth Management, Asset Management, Credit Solutions | Mumbai |
| Axis Capital Limited | 2005 | Investment Banking, Institutional Equities | Mumbai |
| Edelweiss Financial Services | 1995 | Investment Banking, Wealth Management, Asset Management, Insurance, Credit | Mumbai |
| IDBI Capital Markets & Securities | 1993 | Investment Banking, Corporate Advisory, Stock Broking | Mumbai |
| SBI Capital Markets Limited | 1986 | Investment Banking, Project Finance, M&A, Debt & Equity Advisory | Mumbai |
| ICICI Securities Limited | 1995 | Retail & Institutional Broking, Investment Banking, Wealth Management | Mumbai |
| JM Financial Limited | 1973 | Investment Banking, Wealth Management, Asset Management, Lending | Mumbai |
| Morgan Stanley | 1935 (Global), India 1998 | Investment Banking, Institutional Securities, Wealth Management | Mumbai |
Overview of Top 10 Investment Banking Companies in India
1. JP Morgan Limited
JP Morgan opened their first office in India in 1945. Initially, it started offering services like mergers and acquisitions, capital raising, etc. Later, the company started dealing in domestic and international transactions related to GDR. The headquarters of the company are situated in Mumbai.
2. Goldman Sachs Limited
As the company has been operating in India since 1980, It established a fully owned on‑shore presence in December 2006, following its termination of a ten-year partnership with Kotak Mahindra. The company has played an important role in major deals such as the acquisition of Essar Steel by Mittal’s and the sale of Flipkart to Walmart. It also helped companies like Reliance Industries and ICICI Bank to raise funds from the public. The company’s head office is situated in Mumbai.
3. Avendus Capital Limited
In 1999, the company was incorporated. Prior to expanding into wealth management, asset management, and credit solutions, the company focused on offering advisory services. Over time, the company has evolved to be an important player in the Indian capital market. The company’s head office is situated in Mumbai.
4. Axis Capital Limited
Established in 2005, Axis Capital is a major investment banking company in India. The company plays a major role in raising funds, mergers and acquisitions, etc. of companies. Over time, it has established itself as a key player in the Indian Investment Banking Industry. The headquarters of the company are situated in Mumbai.
5. Edelweiss Financial Services Limited
Edelweiss Financial Services Limited Rashesh Shah and Venkat Ramaswamy founded the company in 1995. Before expanding into other financial services, the company initially offered investment banking and advisory services. Over the years, it has made significant changes in both the retail and institutional sectors. The company’s head office is situated in Mumbai (Edelweiss House, Kalina).
6. IDBI Capital Limited
Founded in 1993, IDBI Capital Limited is a fully-owned subsidiary of IDBI Bank. Before venturing out into corporate advisory, stockbroking, and financial product distribution, this company initially focused on capital market and investment banking services. Equity and debt placements, mergers and acquisitions advisory, and retail and institutional broking are some of the services provided by IDBI Capital. The company’s head office is situated in Mumbai.
7. SBI Capital Market Limited
SBI Capital Market Limited company was incorporated in 1986. It is a subsidiary of SBI Bank. And it is one of the oldest investment banks in India. The company offers various services to corporations like mergers and acquisitions, debt restructuring, raising funds, etc. Being the leader of the investment banking industry, it has helped many companies in raising funds through IPO. The company’s head office is situated in Mumbai.
8. ICICI Securities Limited
ICICI Securities Limited company was founded in 1995 as an ICICI Bank subsidiary. The services provided by the company include portfolio management, investment banking, retail and institutional broking, etc. It also offers consultancy services to many companies related to mergers and acquisitions, etc. The company’s headquarters is situated in Mumbai.
9. JM Financial
The company was founded in 1973 and is currently one of the largest investment banking companies in India. It helps various companies in raising capital, mergers and acquisitions, etc. Various companies have taken the advisory services from JM Financial to raise capital through IPO. The company’s headquarters is situated in Mumbai.
10. Morgan Stanley Limited
The company was incorporated in NewYork, but it has been operating in India since 1998 and has become a key player in the Indian Capital Market. The services offered by Morgan Stanley include mergers and acquisitions advisory, equity and debt capital markets, and institutional securities. It offers client-centric innovative solutions. The company’s headquarters is situated in Mumbai. Therefore, we can say that these investment banking companies are the backbone of the Indian Financial Ecosystem.
Read Also: Top Cash-Rich Companies in India
Conclusion
On a concluding note, investment banking companies play an important role in the growth of the Indian Economy by providing advisory services, such as mergers and acquisitions and capital raising, to Indian Companies. However, competition in the investment banking industry has increased over time due to a range of multinational and domestic players. Investment banking companies help various players in launching their IPOs and getting them listed on the Indian Stock Exchange.
Frequently Asked Questions (FAQs)
What is the role of an investment banking firm?
A financial company that helps other companies raise capital and provides advice on corporate restructuring, such as mergers and acquisitions, is known as an investment banking firm.
Which are India’s top investment banking firms?
Edelweiss Financial Services Limited, JP Morgan, Goldman Sachs Limited, and others are among the leading investment banking firms.
Who regulates the investment banking companies in India?
The investment banking companies in India are regulated by the SEBI (Securities and Exchange Board of India).
How do investment banking companies earn their revenue?
Investment banking companies generally get their revenue from underwriting commissions, advisory fees, etc.
Which city in India has the most investment banking companies?
Most of the investment banking companies are located in Mumbai, which is also known as the Financial Capital of India.
