HONG KONG: Deutsche Bank on 5 February named former Merrill Lynch veteran Sanjay Sharma as head of Indian equity capital markets, the latest high-profile banker move in the country’s booming deal market.
Sharma, who Deutsche said will begin on 1 March , had the same role at Merrill, which last month said it would move Asian equity syndicate head Sumeet Puri from Hong Kong to assume that job.
Indian equity capital markets volume jumped 22% to more than $19 billion last year, as total investment banking revenue hit a record $413 million, according to data from Dealogic.
Indian stocks rose more than 45 % in 2006, and Deutsche ranked second in investment banking revenue behind Citigroup, with $42 million in revenue from underwriting stock and bond deals and advising on mergers.
Investment banks like Lehman Brothers, Goldman Sachs and UBS are expanding their India teams as the country’s companies become bigger global players.Lehman last month poached Citigroup’s Surojit Shome as head of investment banking for India.
Tata Steel last week edged out Brazil’s CSN to win a $12 billion bid for Anglo-Dutch steelmaker Corus Group, India’s largest-ever outbound transaction.
Bankers, particularly non-resident Indians, are keen to move to Mumbai and New Dehli as top salaries approach the same levels as those in Singapore and Hong Kong, and the market yields increasingly large and interesting transactions.
However, intense competition between banks has taken a bite out of fees, with equity deals only paying an average of 1.6%, compared with 2.3 % for Hong Kong offerings and up to 7 %for initial public offerings in the United States.