AIBI’s 9 Initiatives: A New Dawn for Investors and Merchant Bankers in India

The Association of Investment Bankers of India (AIBI) has unveiled nine game-changing initiatives to boost investor awareness, merchant banker’s capacity building and ease of capital formation in India. The initiatives were launched at AIBI’s Annual Convention 2023-24, which was centered on the theme ‘Ease of Capital Formation’ in India. The convention was attended by Ms. Madhabi Puri Buch, the Chairperson of the Securities and Exchange Board of India (SEBI), who launched some of the initiatives.

The nine initiatives of The Association of Investment Bankers of India (AIBI) are:

• Investor Section on AIBI Website: A dedicated section on AIBI’s website that provides information on various aspects of investing in the Indian capital market, such as IPOs, rights issues, QIPs, OFS, etc.
• An Aggregated Live Database of Current ECM Issuances: A live database that tracks the current equity capital market (ECM) issuances in India, such as IPOs, FPOs, rights issues, QIPs, OFS, etc., along with their details, status and performance.
• Videos of upcoming IPOs: Short videos that showcase the upcoming IPOs in India, highlighting their business overview, financials, growth prospects and risks.
• Animated Video for Investors on ‘Know IPO Investing’: An animated video that explains the basics of IPO investing to the investors, such as what is an IPO, how to apply for an IPO, what are the benefits and risks of investing in an IPO, etc.
• Standard Practice Manual for IPO Offer Documents: A manual that provides guidelines and best practices for preparing IPO offer documents, such as DRHPs, RHPs and prospectuses.
• Revamped AIBI Due Diligence Manual: A manual that provides guidelines and best practices for conducting due diligence for IPOs and other ECM transactions.
• Compendium of AIBI Advisories: A compendium that collates all the advisories issued by AIBI to its members on various regulatory and operational matters related to ECM transactions.
• AIBI Mascot called AIBI Chankakya – The Investment Banker: A mascot that represents AIBI and its vision of creating a robust investment culture in India.
• AIBI Brand Tagline: ‘Creating a Robust Investment Culture in India’: A tagline that reflects AIBI’s mission of promoting investor awareness, financial literacy and ease of capital formation in India.

These initiatives are aimed at offering a transparent, information exchange platform powered by AIBI, enabling investors and merchant bankers to make informed decisions. They are also expected to strengthen the institution of merchant banking and achieve ease of doing business in capital formation.

Mr. Mahavir Lunawat, Chairman, AIBI & MD Pantomath Capital Advisors said, “India is not only making headlines but also leading the global charge in capital formation, boasting the highest number of public offerings in CY 2023. About INR 1.5 lac crores of equity funds garnered through IPO & Post-IPO transactions. In another global showcase, Indian IPOs have performed well post-listing. More than 90 % of the new issuances in India during CY23 stand at a premium to the IPO price. In contrast, more than 60 % of new entrants are below IPO price in the USA. Interestingly, the average Indian IPO multiple in CY23 was 35 as against the related average Industry PE multiple of 63.”

Mr. Lunawat further added, “With a galloping economy, a sizable population, and a robust regulatory framework, India has become the most desirable location for investors looking to capitalize on the nation’s potential. The Indian capital market has consistently advanced as one of the most resilient marketplaces globally, providing impetus to the much-needed capital formation process. On the sidelines of these developments, the nine launches in capacity building of merchant bankers, promoting investor awareness, and achieving ease of doing business in capital formation are well-timed.”

Mr. Prithvi Haldea, Advisor, Association of Investment Bankers of India said, “For the Indian capital market to grow into the next orbit. it is pivotal to review and improve the ecosystem to cater to the issuers and merchant bankers.