NSE Sets Advisory Fee At 0.65% For $2.5 Billion IPO, Below Recent Industry Averages

National Stock Exchange of India has fixed advisory fees at around 0.65% of the issue size for its upcoming initial public offering, estimated at about $2.5 billion, according to people familiar with the matter.

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Fee Structure And Industry Comparison

Based on the proposed issue size, the total advisory fee pool is estimated at about $16.25 million. The figure is expected to be shared by several investment banks that worked on the deal.

From the data presented by the London Stock Exchange Group (LSEG), the average fees charged by the advisors were 1.86% for the total of 417 IPOs in 2025 and 1.67% for the total of 350 IPOs in 2024. The proposed fee for NSE’s IPO is lower than both these averages.

Banks Appointed For The IPO

NSE has appointed around 20 banks to work on the offering. Among them, key roles have been assigned to institutions including Kotak Mahindra Capital, JM Financial, Morgan Stanley, HSBC, Citigroup and JPMorgan Chase. Kotak Mahindra Capital has been designated as the lead for the transaction.

Comparison With Other Large Offerings

Fee structures for large public offerings in India have varied in recent years. In July, State Bank of India raised ₹25,000 crore (about $2.8 billion) and paid a nominal fee of ₹1 each to six banks, according to media reports.

From the earlier examples, we see that Life Insurance Corporation of India’s fees were 0.58% of the issue size in 2021, while NTPC Green Energy’s fees were 0.54%.
Private Sector IPO Fee Trends

Advisory fees were reportedly higher in private sector IPOs as well. Hyundai Motor India paid about ₹493 crore, or 1.77% of the issue size, in 2024, which is reportedly the largest fee payout by the company in India. LG Electronics paid about ₹226 crore, or 1.94%, of the $1.3 billion India IPO.

The proposed fee structure for NSE’s IPO reflects the pricing approach observed in large public or institution-linked offerings, where overall transaction costs are kept lower compared to broader market averages.