Connect with us

Hi, what are you looking for?

DOGE0.070.84%SOL19.370.72%USDC1.000.01%BNB287.900.44%AVAX15.990.06%XLM0.080.37%
USDT1.000%XRP0.392.6%BCH121.000.75%DOT5.710.16%ADA0.320.37%LTC85.290.38%
THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

Business

Business

Hyundai Motor India Ltd. manufactures automobiles in Kancheepuram, Tamil Nadu.

Listen to the article now

ECB study: Stablecoins and bitcoin are the worst options for cross-border payments

Photo by Hyundai/black modern car standing illuminated and big city in background

Three sources claimed banks advising Hyundai on its India IPO may gain $40 million in fees, a windfall in a sector where banks struggle to generate money due to cost-conscious customers and fewer major transactions.
That would be the second-highest fee pool for investment banks working on an IPO in India, a bright light in a gloomy Asia due to a strong rise in stock transactions.

Hyundai Motor The South Korean parent’s India affiliate filed for regulatory clearance for a listing this month, which could be the nation’s largest and garner $2.5-$3 billion at a $30 billion valuation.
The sources, who have firsthand knowledge of the transaction negotiations, said Hyundai India would pay banks, including JPMorgan, Citigroup, and HSBC 1.3% of the IPO size.

Hyundai India, HSBC, Citi, and JPMorgan said nothing.
That makes it the second largest payday for banks behind Indian fintech company Paytm’s $40 million for a single transaction at the top of the deal size. According to Dealogic, the 2021 IPO earned its seven advisors $44 million.
Fees for Indian banks range from 1% to 3% of IPO size, with bigger transactions offering issuers greater negotiating leverage. New York banks may make 3%-3.5% and Hong Kong 2%-3% on a $3 billion IPO.

Most large equity transactions in India have come from state-owned enterprises with modest costs, say bankers.
Western bankers privately lament the Indian market’s poor earning potential, but they anticipate transaction sizes and fees to rise in the coming years.
Dealogic estimates that the Hyundai India IPO’s $40 million payment would account for a fourth of India’s $164 million IPO fee revenue in 2023. IIFL, Kotak Mahindra, and Jefferies led India’s IPO fee league last year, according to London Stock Exchange Group statistics.

IPO fees in India jumped 55% to $164 million last year, with a record 234 businesses launching. According to Dealogic, New York banks earned $890 million and Hong Kong IPO fees $135 million last year.


Comment Template

You May Also Like

Politics

  Ukrainian troops describe Russian tactics they see everyday with a brutal word. They call them “meat assaults”—waves of Russian troops attacking their defensive...

Politics

US President Joe Biden calmed top Democrats and campaign workers after rumors claimed he was considering his departure following last week’s dismal debate with...

Economy

Family members prayed and honored Patricia Portillo and Brayan Godoy. On Saturday, people gathered outside a closed Las Colinas Chick-fil-A to memorialize two employees...

Technology

South Dallas AT&T customers lose service following copper cable theft. Due to copper wire theft, AT&T customers in South Dallas are experiencing lengthy service...

Notice: The Biznob uses cookies to provide necessary website functionality, improve your experience and analyze our traffic. By using our website, you agree to our Privacy Policy and our Cookie Policy.

Ok