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Merchant banks expand teams for SEBI work as IPO market heats up
In India’s equity capital markets, “left-lead” bookrunning managers handle drafting the red herring prospectus, regulator query sessions and offer valuation after filings.
LiveMint reports that investment banks and boutique advisory firms are stepping up hiring and capability building for regulatory compliance roles as India’s IPO activity picks up. The outlet says firms are exploring ways to expand their “left-lead” equity capital markets teams to win higher-value mandates in primary offerings.
The report says “left-lead” bookrunning managers directly engage with the Securities and Exchange Board of India after document filing. Their responsibilities include preparing the draft red herring prospectus, handling legal correspondence, representing issuers in regulator query sessions, and valuing the offer once stakeholders have been consulted.
According to LiveMint, several international lenders, including Avendus Capital Pvt, Moelis & Co, Rothschild & Co, Societe Generale SA and BNP Paribas SA, are among those said to be considering options to build out their left-lead capabilities. The outlet adds that some firms previously limited to ancillary sectors, such as wealth management, are also looking to add merchant banking teams through direct hiring.
LiveMint also quotes a senior banker at a foreign institution saying issuers prioritize the bank that manages the regulatory process directly with SEBI, and that sub-syndication roles typically offer lower fee margins. The report further cites an executive hiring firm associate partner saying left-lead capabilities are increasingly important for clients when selecting investment banks, driving hiring activity.