The fiscal yr was the largest ever for India’s major markets, with IPOs collectively elevating greater than Rs 1.5 lakh crore. The standout deal was for food-delivery big Swiggy’s Rs 11,327 crore IPO, which alone generated Rs 20.7 crore in authorized charges for Cyril Amarchand Mangaldas and Trilegal, who suggested on the difficulty.
This made it the only largest payment payout to attorneys amongst all IPOs in 2024-25, greater than even bigger points like Hyundai India and HDB Monetary.
Hyundai’s Rs 27,858 crore IPO paid round Rs 6.4 crore in charges to Khaitan and Co and JSA, who acted as advisors. HDB Monetary’s Rs 12,500 crore challenge spent about Rs 15 crore, dealt with by Cyril Amarchand Mangaldas and Shardul Amarchand Mangaldas.
Vishal Megamart, with an Rs 8,000 crore IPO, paid Rs 12.1 crore, the place Trilegal was among the many lead advisors. Swiggy, regardless of being smaller than Hyundai by challenge measurement, topped the chart on absolute payment payout.
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The report additionally exhibits that giant IPOs above Rs 5,000 crore attracted authorized charges within the vary of Rs 6–20 crore, relying on complexity. For mid-sized points between Rs 1,000 crore and Rs 5,000 crore, attorneys billed within the vary of Rs 3–8 crore per deal.
It ought to be famous that IPO charges aren’t at all times consistent with the dimensions of the difficulty. They rely on elements like regulatory complexity, structuring of contemporary points versus offer-for-sale, the variety of promoting shareholders, and coordination with abroad buyers. Swiggy’s IPO concerned a mixture of these, making it extra legally intensive.
The IPO market is dominated by a handful of legislation corporations. Trilegal, Cyril Amarchand Mangaldas, Shardul Amarchand Mangaldas, Khaitan & Co and JSA collectively dealt with round 56% of all IPO mandates throughout FY25.
Inside this group, Trilegal, CAM and SAM alone accounted for about 44% of the entire mandates.
Why are there excessive authorized prices for IPOs
Authorized advisory charges are additionally a major a part of the general price of IPOs, that are advanced, contain world participation, and are time-sensitive. All these elements push up authorized prices.
Sebi’s tighter disclosure regime and the rising choice for pre-IPO rounds additionally add layers of vetting, which attorneys are geared up to deal with.
(Disclaimer: Suggestions, strategies, views and opinions given by the specialists are their very own. These don’t characterize the views of the Financial Occasions)
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