What’s the Indian IB scene like?

I’m curious about what investment banking is like in India, especially considering Mumbai is a major financial hub. I know the big BBs (Goldman, JPM, etc.) have offices there, but they’re mostly focused on support functions, right? I’m also aware there are some big local players like HDFC, Axis, and a handful of boutiques like Avendus, O3 Capital, and Edelweiss (heard they produce some of the best Delta One traders in the world).

With the Indian stock market performing so well in recent years and all the IPO activity, there must be at least some ECM guys and traders making moves. Yet, I hear so little about Indian IB in the general discussion. What’s the deal flow like compared to the West? Is there a significant focus on cross-border deals? Also, what’s the culture like in these Indian banks—do they follow a similar structure to their Western counterparts? Pay and exit opportunities?

Looking forward to hearing some insights!

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Investment banking in India is a unique and evolving landscape, shaped by its growing economy, smaller deal sizes, and a mix of global and domestic players. Here's a breakdown based on the most helpful WSO content:

Presence of Global and Local Players

  • Global Banks (BBs): All major bulge brackets (Goldman Sachs, JPMorgan, Morgan Stanley, etc.) have a presence in India, but their focus isn't solely on support functions. They actively participate in advisory roles, though the deal sizes are generally smaller compared to Western markets. Notable boutiques like Lazard, Moelis, and Rothschild also operate in India.
  • Domestic Players: Local banks like HDFC, Axis, Kotak, and SBI Capital dominate the market alongside boutiques like Avendus, O3 Capital, and Edelweiss. These firms often handle smaller ticket-size transactions, typically under $100 million, to build relationships with companies for future, larger deals.

Deal Flow and Market Dynamics

  • Deal Sizes: The Indian IB market is characterized by smaller deal sizes, often in the sub-$10-30 million range. This is a stark contrast to the West, where larger transactions are more common.
  • Sector Focus: There's significant activity in sectors like education, healthcare, energy, and financials. The market is still evolving, and many deals are aimed at building long-term relationships rather than immediate high-value transactions.
  • Cross-Border Deals: While cross-border transactions exist, the focus is often regional or domestic. The competitive nature of the market and low advisory fees make it challenging for global players to compete on smaller deals.

Recruitment and Culture

  • Recruitment: Investment banking recruitment in India is heavily skewed towards graduates from top-tier institutions like IIM A/B/C and ISB. Lateral hires from domestic banks or other MNC banks are also common. For private equity and venture capital, consulting and banking backgrounds are preferred.
  • Culture: The structure and culture in Indian banks are similar to their Western counterparts, but with some local nuances. For instance, shareholder disputes and enforcement of agreements can be more challenging in India compared to Western markets.

Pay and Exit Opportunities

  • Pay: Compensation in Indian IB is competitive but generally lower than in Western markets. However, it is still significantly above average for most industries in India.
  • Exit Opportunities: Exit options include private equity, venture capital, and corporate roles. PE/VC firms often hire from consulting and banking backgrounds, with top-tier funds like Sequoia and Accel being active in the market.

Challenges and Opportunities

  • Challenges: The market is highly competitive, with low fees and smaller deal sizes making it difficult for global players to justify their presence. Additionally, the family-owned business culture in India can limit the development of private equity.
  • Opportunities: Despite these challenges, the Indian market is promising and growing, with recent strong exits in the VC space and a booming stock market driving IPO activity.

In summary, while the Indian IB scene may not yet rival the scale of Western markets, it offers unique opportunities and challenges, with a mix of global and local players shaping its growth.

Sources: Non US/Europe IB/PE Overview, Non US/Europe IB/PE Overview, Q&A: Indian Boutique M&A Associate, Q&A: Front-end Banker India, Q&A: Front Office Investment Banking Analyst in India at a Bulge Bracket (GS/MS/JP)

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Foreign bulge bracket banks (Citi, Morgan Stanley, JPM, Goldman Sachs, BofA) maintain strong domestic coverage along with supporting functions for the US, EMEA, and APAC regions.

On the domestic front, execution is typically divided into two verticals: 1. M&A advisory and private capital raises – Usually led by firms like O3 Capital and DAM Capital. 2. Public markets (QIP, IPO, Pre-IPO, Follow-ons) – Dominated by Axis Capital, JM Financial, SBI Caps, and Kotak.

A standout in recent years has been Motilal Oswal, which has emerged as a major force after hiring two rainmakers: Amit Ramchandani (ex-JM) and Subhrajit (ex-BofA).

Avendus Capital operates across both verticals and benefits significantly from backing by a strategic investor.

Breaking into these roles typically requires top-tier credentials — IIM/ISB MBAs, CAs, CFAs, or foreign degrees are the norm

That said, cross-border M&A activity remains limited, though there are hints of foreign investors participating in capital raises.

The culture mirrors traditional investment banking — high intensity, cutthroat, long hours, and a lot of FaceTime. The compensation is strong by Indian standards, although there’s a clear step-down when moving from global banks to domestic ones, especially in bonus payouts, where the biggest difference lies.

Unlike global models, analysts don’t typically follow the “2 & out” path. Most are in for the long haul unless a better IB opportunity presents itself. Common exit routes include domestic PE and VC, while transitions to MF PE are relatively rare.

 

ik this isn’t IB but tangentially relevant-

HFs and prop shops have really expanded indian ops

prev props would trade indian equities/options out of singapore/hong kong but now (other than jane which still does from hkg) other big shops like citsec(gurugram) optiver imc hrt (mumbai) jump (gift city) etc all have teams in india.

HFs ik shaw and mlp have lots of people in india but not sure if it’s just tech/back office or acc trading teams 

squarepoint and qrt asw

 

it’s acc the other way around.

gambling/bettings is illegal in india. due to human nature and 1.5 billion population there’s loads of people who still want to try their’luck’.

options give u crazy leverage so indian options probably have one of the highest retail volume of any major market. which is why these firms print money there. (think back to jane vs mlp)

 

There is a somewhat long tail of no name shops but working at these firms may cause some issues in the long-run, a few names (indicative list) worth looking into include:

Micro IBs:  Loestro Advisors, Dexter Capital, Merisis Advisors, Keynote IB, Valuebridge Capital, Daylight Capital, Steer Advisors, Lastaki, Metta Capital, Pareto Capital, Param Capital

Small IBs: Singhi Advisors, Unitus IB, Unaprime IB, Lodha Cap, Pantomath, Equirus

Small/Feeder IBs: Big 4 IBs, Haitong, TRMG, Avener, Incred, SBI Cap, HDFC IB, Yes Securities, DAM Capital

Would also suggest looking into Middle Offices of select IBs, in the long run, they are better starting points than many of the aforementioned IBs

 

Hey, I hope you are doing well, first off thanks a lot for replying in such detail- also read your comment below which was very useful.

Would it at all be possible for me to connect with you over whatsapp/Linkedin/ telegram if you would like to remain private. At the moment I am outside India looking to come back but really overwhelmed on where to start and how to go about this, I am happy to pay you for your time as well, Just really lost in life and needed some advice.

 

A few a nuanced observations (more Exit focused and tailored towards Front Office IB roles in India):

  1. The established standard of IB>>PE has completely broken down in India at an undergrad level, there is a very high degree of survivorship bias that we see among those who have made this transition in the past (exception rather than the norm + nepo hiring + other factors at play)
  2. Domestic shops/Boutiques have very poor signaling value (automatic reject pile for many PE roles, done tacitly/explicitly), conversion from these places has become almost impossible in the past 2-3 yrs or so, especially if a Michael Page or Native (the main headhunters for PE hiring) is involved in the process
  3. Most MFPE/UMM/MM/Regional Funds that operate in India have an unspoken ‘No Bankers’ policy, the few interviews that folks get is mostly just so that the funds can go back and say that ‘we gave the banker a shot, he messed up’
  4. There is an implicit age criteria that many MFPE/UMM/MM/Regional Funds have; if you are above a certain age (26yo+) your chances of getting into a fund drop drastically, which is becomes a serious problem when you take into account the rising time/experience barrier to entry in IB as an undergrad, you can absolutely get aged out of processes - This is greatly amplified by the headhunters involved in the process

    An unfortunate rule of thumb if you are in IB and want to move to a decent buyside shop is that the processes/overall setup is 'you v/s the headhunters' NOT 'you + the headhunters' ' ; sad but true

  5. An interesting silver lining in banking is that if the quality of the asset your team is running a process for is enough to intrigue the better funds that operate in the country, there is a good chance that you get to interact with VPs and above at these funds. DO NOT underestimate the potential of these relationships, a case could be made that these relationships give you the best/only shot at breaking into these funds (allows you to avoid the 'culling of the bankers' practices of the headhunters).
  6. Transferable skill set for an investing role is practically absent in Boutique IBs in India, particularly for undergrad analysts, the longer you stay in banking the worse this gap gets; No commercial acumen + No technical skill
  7. Hiring in Boutiques/Better Domestics has been getting worse with time, the current pool of analysts is struggling to find exits, making entry into these IBs even harder; this problem is amplified by the fact that Boutique IB/Domestics have started hiring for retention rather than performance/acumen/skill  i.e. they would much rather have someone who will stick around because they are not 'savvy' or 'smart' enough to exit than hire the 'performers'
  8. BBs/EBs have stopped hiring straight out of college, most need at least 1-2 yrs of experience at a domestic shop/established middle office; this barrier to entry is only getting steeper with time; the main value of an EB/BB is getting that first interview with funds (many have started failing at this as well)
  9. Most hiring in IB is very ‘proxy’ oriented (which uni you went to etc. they will absolutely discriminate between Indian target schools as well + no real test of even basic financial knowledge in the selection processes); calling breaking into IB a 'total crapshoot' and complete 'luck of the draw' is significantly closer to the truth than most would expect / than it should be
  10. Most BB/EB/Domestics & Boutiques invest next to nothing in training up junior bankers and often gatekeep the ‘real’ work from them, resulting in multiple situations where tenured analysts struggle with basic financial concepts (most analysts don’t get to touch models before ~3yrs on the job);

    The irony is that IBs have started hiring for retention BUT they don't invest in said juniors; effectively a Catch-22 situation for junior folks who entered banking with exit ops in mind.

  11. Many teams within EBs/Domestics & Boutique have a policy of not staffing analysts on deals, you effectively become an in-house GCC/Back office for these practices – This has nothing to do with the performance of the analyst(s) - Do your due diligence before joining any team because this will have a profound impact on the quality of your experience & exit
 

Mofos be transferring internally to London. No way would any IB hire them directly. It’s always Indian MD (Hindu/Sikh) importing these turds from Bangalore and then they start polluting the teams with their caste preferences

 

In my bank we use the indian office to make slides for us at night, but they're often terrible so we have to redo them in the morning

 

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