Investment banks are experiencing a significant surge in IPO-related earnings, with ₹2,290 crore in fees generated during the January-September 2026 period. According to Prime Database data, this represents a notable increase from the ₹2,238 crore earned in the corresponding period last year, when banks managed 74 issues worth ₹85,256 crore. The September quarter alone contributed approximately ₹1,580 crore in fees, marking a 31% jump from the ₹1,202 crore earned during the same period in 2025. The July-September period has been particularly lucrative, with lead managers earning ₹652 crore in August, ₹512 crore in September, and ₹417 crore in July, as reported by The Financial Express.
The highest fee-generating IPOs demonstrated significant returns for investment banks, with NSE generating the most at ₹186 crore (0.82% of issue size), followed by Manipal Health Enterprises at ₹165.94 crore (1.8% of issue size). Dhoot Transmission paid ₹86 crore (2.8% of issue size), while Fractal Analytics contributed ₹71.1 crore (2.5% of issue size). Shadowfax Tech and Clean Max Enviro paid ₹70.37 crore and ₹67 crore respectively, equivalent to 3.7% and 2.2% of their issue sizes. SBI Funds Management also contributed significantly with ₹9,812.91 crore raised on its ₹9,796 crore IPO, while NSE alone raised ₹22,562.71 crore in September, as per The Financial Express.
The primary market activity has shown remarkable variation across months, with August 2026 recording the highest earnings at ₹652 crore from 23 IPOs worth ₹22,453 crore. September 2026 followed with ₹512 crore from 20 IPOs worth ₹32,802 crore, while July 2026 contributed ₹417 crore from 12 IPOs worth ₹28,648 crore. The year started modestly with ₹150 crore in January from 3 IPOs worth ₹4,765 crore, followed by stronger performance in February (₹218 crore) and March (₹209 crore) from 7 and 8 IPOs respectively. April saw a lull with only ₹38 crore from 2 IPOs, while June contributed ₹95 crore from 7 IPOs worth ₹2,718 crore, as reported by The Financial Express.
The fee percentages for investment banks have shown considerable variation, ranging from as low as 0.05% for SBI Funds Management on its ₹9,796 crore IPO to as much as 15.6% for Innovision on its ₹319.25 crore issue. The average fee structure for 2026 has been approximately 3-4% of issue size. As reported by Economic Times, Kaushal Shah from Kotak Investment Banking noted that fee percentages should be viewed in context of fixed fees, GST, and transaction complexity rather than absolute amounts. The current surge reflects the record IPO pipeline and strong market demand, with lead managers benefiting from the ₹83,903 crore raised during July-September, more than double the ₹39,881 crore raised in the same period last year.
The surge in primary market activity comes at a time when the secondary market faces challenges from soaring crude oil prices, US Treasury yields at multi-year highs, and a weakening rupee. As Vinod Nair from Geojit Investments noted, "Broader markets fell as much as frontline indices this week, while heavy IPO issuance drew liquidity away from listed equities." Kruti Shah from Equirus Securities highlighted that "Liquidity remains a constraint, with a record IPO pipeline, including NSE, absorbing secondary-market flows, while MTF book pressure adds to near-term supply." Despite these secondary market pressures, the primary market continues to attract strong investor interest, with the ₹2,290 crore in lead manager earnings representing a 2% YoY jump and indicating robust investor confidence in India's IPO market.
