Investment bankers look at buybacks, advisory roles as IPO market dries up

The lull in fund-raising activity by way of initial public offerings (IPOs) and qualified institutional placements (QIPs) has pushed investment bankers in the equity capital market segment to look at buybacks, delisting and advisory roles to shore up revenues. “Bankers are looking at alternatives such as buybacks and delisting as the market for IPOs and QIPs has completely dried up owing to the weak market conditions,” said Prashant Shetty, managing director, IDFC SSKI. In 2011, more than a dozen companies opted for a buyback worth more than R3,000 crore, according to data from Prime Database. Another 15 firms have lined up buybacks through open-market purchases, amounting to more than R2,300 crore.

Source: Financial Express