NSE Sets Advisory Fees for Upcoming IPO at 0.65% Amid Market Trends

The National Stock Exchange of India has set its advisory fees for the upcoming IPO at 0.65%, which is significantly lower than the average fees in the market. With an expected valuation of $2.5 billion, this could lead to a fee pool of around $16.25 million, primarily distributed among six leading banks. This conservative fee structure reflects a trend in India's capital markets, especially among public-sector institutions. In contrast, private-sector IPOs tend to offer higher payouts. This article delves into the details of the fee structure and its implications for the involved banks and the market.

By Narendra Chaudhary Mar 18, 2026, 17:27 IST

NSE's IPO Advisory Fee Structure

The National Stock Exchange of India (NSE) has reportedly established its advisory fees for the highly anticipated initial public offering (IPO) at approximately 0.65% of the total issue size. Sources familiar with the matter indicate that the IPO could be valued around $2.5 billion (approximately ₹23,085 crore), leading to a potential advisory fee pool of nearly $16.25 million. A significant share of this fee is expected to be allocated among the six leading banks involved in the process, as per a report.

This fee structure diverges from the prevailing trends in the market. According to data from the London Stock Exchange Group, companies paid an average of about 1.86% in advisory fees last year, while issuers in 2024 have paid around 1.67%.

Recently, the NSE appointed around 20 banks to oversee the IPO process. Key players include Kotak Mahindra Capital, JM Financial, Morgan Stanley, HSBC, Citigroup, and JPMorgan Chase, with Kotak Mahindra Capital expected to take the lead on this transaction.

Cost Management in Public Sector Deals

The relatively modest fee reflects a broader trend within India's capital markets, especially concerning public-sector or quasi-sovereign institutions, where issuers are vigilant about managing transaction costs. In various cases, banks have accepted minimal fees in exchange for the prestige linked to high-profile mandates. For instance, during a ₹25,000 crore fundraising by the State Bank of India in July, six banks reportedly received a nominal fee of just Re 1 each.

Raghuram Kasiviswanathan, head of IPO advisory at Uniqus Consultech, commented, “Compared to large state-owned or public institutions, the NSE’s fee structure seems quite reasonable. Being at the center of the country’s capital markets not only provides immediate revenue but also establishes a long-term strategic position.”

Higher Fees in Private Sector IPOs

In contrast, fee structures for private-sector IPOs are generally more rewarding. For example, Hyundai Motor India paid approximately ₹4.93 billion, or 1.77% of its issue size, during its record listing in 2024. Similarly, LG Electronics incurred around ₹226 crore, or 1.94%, for its $1.3 billion IPO in India.

Earlier this year, Amundi and SBI proposed fees of about 0.01% for the anticipated IPO of SBI Fund Management, a rate that some bankers deemed excessively low, leading several global firms to withdraw from the deal. Meanwhile, Life Insurance Corporation of India paid around 0.58% in fees for its 2021 IPO, while NTPC Green Energy's fees were approximately 0.54%.