Homegrown investment bank JM FinancialBSE 0.87 % Group has toppled its larger multinational peers in the mergers and acquisitions (M&A) fee league table by earning USD 23-million in rewards.
The Kampanis-led bank accounted for 10.1 percent share of the overall fee pool of USD 228.1 million.
The city-based merchant banker has pushed its British counterpart Standard Chartered (USD 22.4 million) and domestic peer Axis BankBSE 0.30 % (USD 14.1 million) to the second and third slots with 9.8 percent and 6.2 percent respectively of the wallet share, as per the data collated by Thomson Reuters.
According to the data, the M&A advisory fees from completed transactions totalled at USD 228.1 million in 2017, a growth of 60 percent over 2016, even though the overall domestic M&As declined 3.5 percent in the year at USD62.1 billion, which still is the highest since 2010.
JM more than doubled its wallet share in the year which rose by 5.4 percentage points from 4.6 percent in 2016.
EY LLP came in at the fourth slot with USD 14 million in fees, followed by ICICI BankBSE -0.81 % (USD 13.9 million), Rothschild & Co (USD 12 million), Morgan Stanley (USD 8.3 million), Jefferies (USD 8.2 million), JP Morgan (USD 7.9 million) and Arpwood Capital at USD 6.4 million, taking the industry total wallet at USD 228.1 million.
According to Bloomberg data of the completed deals as well, JM Financial topped the list in the year with a advisory value of USD 16.13 billion involving just eight deals cornering 14.56 percent of the pie.
It is followed by Arpwood Capital with 14.48 percent of the pie with a deal value of USD16.04 billion involving just two deals. Sharing the third slot are the Russian banker VTB Capital and the Swiss banker UBS with 11.65 percent market share and USD 11.65 billion in value each involving just one deal (Essar Oil sale).
According to the Thomson Reuters data, value of announced deals involving domestic firms reached USD62.1 billion in 2017, down 3.5 percent, but still elevated compared to historical M&A activity. But despite this decline, the number of announced deals grew 10.6 percent over 2016.
The average deal size with disclosed value declined to USD 84.6 million in 2017 compared to USD 102.3 million last year, after witnessing positive growth in mid-market deals particularly for deals under USD 500 million.
However, inbound M&As hit a record high at USD 31.7 billion, up 15 percent in value but the outbound deals plunged 73.5 percent to USD2.6 billion from 2016, which is the lowest since 2014, bringing total cross-border M&As to USD 34.3 billion, down 8.1 percent in value from 2016.
Domestic M&As stood at USD 25.4 billion, down 0.5 percent in value, despite an 18.6 percent growth in volume.
Completed M&As totaled USD 59.4 billion, up 78.3 percent in value over 2016 when it stood at USD33.3 billion, while number of completed deals grew 27.3 percent.
Sectorally, thanks to the Vodafone-Idea merger announcement, telecoms captured 30 percent market share, which is the highest in a decade at USD 18.5 billion, a six-fold increase in deal value compared to 2016. This is the highest since 2007 when it stood USD19.4 billion.
In March 2017, Vodafone India agreed to merge with Idea Cellular in an estimated USD11.6 billion deal. Upon completion, Vodafone will own 45.1 percent stake and Idea the remaining 54.9 percent in the new joint venture. This is the largest M&A deal in 2017 and the second largest in telecoms after the USD12.7-billion Hutchison-Vodafone deal in 2007.
Financials and high technology rounded out the top three industries and capturing 16.7 percent and 11 percent market share, respectively.
Source: Economic Times