Based on an expected deal size of about $2.5 billion (approx Rs 23,085 crore), the total fee pool could be about $16.25 million, with the bulk likely to be shared among the six lead banks, the people said, asking not to be identified because the information is private.
That compares with a roughly 1.86% average paid by 417 companies last year and 1.67% by 350 issuers in 2024, according to data from LSEG.
NSE last week appointed about 20 banks to work on the IPO. Of those, Kotak Mahindra Capital Co, JM Financial Ltd, Morgan Stanley, HSBC Holdings Plc, Citigroup Inc. and JPMorgan Chase & Co. have been given key roles, with Kotak acting as left lead, the people said.
Representatives for NSE and the banks didn’t immediately respond to requests for comment.
The relatively modest fee underscores a broader pattern in India, especially in government-linked or quasi-sovereign transactions, where issuers keep tight control over costs. In some cases, banks accept token fees in exchange for the prestige and league table positioning that comes with marquee mandates. When State Bank of India raised Rs 25,000 crore ($2.8 billion) in July, it paid six banks a symbolic Re 1 each, according to local media.
“Compared with large state-owned or public institutions, NSE’s fee payout appears relatively fair,” said Raghuram Kasiviswanathan, head of IPO advisory at Uniqus Consultech. “With the exchange at the heart of the country’s capital markets, securing a role offers not just immediate revenue, but a longer-term strategic foothold.”Earlier this year, State Bank of India and France’s Amundi SA offered fees of about 0.01% for the planned $1.4 billion IPO of SBI Fund Management, a level some bankers described as rock-bottom, prompting a few global firms to opt out. Life Insurance Corporation Ltd. paid about 0.58% of the issue size as fee in 2021 while NTPC Green Energy paid around 0.54%, according to IPO prospectus.
By contrast, private-sector deals have tended to be more lucrative. Hyundai Motor India’s record IPO in 2024 paid about 4.93 billion rupees, or 1.77% of the issue size, in fees and commissions, the largest such payout in the country. LG Electronics paid about Rs 226 crore or 1.94% to five banks for its $1.3 billion India listing.
