Dark clouds still loom over India IPOs

By:
Rob Hartley
Published on:

The feelgood factor from the election of Narendra Modi as prime minister does not seem to be translating into better fees for IPO bankers – yet.

If you wanted to put a banker’s faith in the mantra of 'long-term greedy’ to the test, the Indian IPO scene would not be a bad place to start. There has been the promise of gold at the end of the rainbow in India for many years, but the riches have remained as elusive as the leprechaun’s pot.

Fee suppression is a constant grumble that has tested the patience of many veteran dealmakers, often prompting the question of whether or not it is worth doing business there. For some the answer is no, but for others India is not a market they are prepared to abandon.

The election of Narendra Modi as prime minster in May has translated into generally bullish sentiment on India; investors are hopeful of some movement on much-needed reforms. Along with the optimism about Modi, ECM bankers are hoping for a healthier pipeline of...