Covid-19 hits investment banking revenues

Fees generated from investment banking activities have fallen by 33.6% in India to $222.0 million in the first quarter of 2020 from a year ago, according to Refinitiv, a provider of financial markets data and infrastructure. In its India investment banking review, Refinitiv said that completed mergers and acquisitions (M&As) advisory fees also fell to $35.5 million, down 66.1% from a record start last year. “Corporate deal-making activity in India has been hampered as the Coronavirus pandemic drew and redirected the attention of the global community and spurred volatile markets,” says Elaine Tan, a senior analyst with Refinitiv. Engaged in deals intelligence within Refinitiv’s investing and advisory division in Asia-Pacific, Tan counts Equitas Small Finance Bank, Burger King India, and Rossari Biotech as the Indian companies which could have raised an estimated $521.1 million in combined total, if the market scenario was not so dampened. The United States was the top targeted nation in terms of value as well as number of acquisitions from Indian companies with 9 deals worth $228.7 million, or 61.9% market share. The majority of the deal-making activity involving India targeted the energy & power sector which totaled $7.6 billion in deal value, up 82.8% from a year ago and captured a 32.7% market share. KPMG and HSBC Holdings are tied at the top spot on the M&A league tables, with $1.5 billion in related deal value each worth 6.5% market share. Bharti Airtel’s issuance was the reason for the telecommunications sector accounting for the majority of India’s ECM activity with 51.1% market share worth $3 billion in proceeds. Refinitiv also highlighted that BofA Securities currently leads the ranking for India’s ECM underwriting with $861.8 million in related proceeds and 14.5% market share. Given the fragile state of the global economy, which is bracing for a recession, while it is too early to crystal gaze, but the second quarter of 2020 would show suppressed signs as the fight against the Covid-19 pandemic is ongoing.