Senior investment bankers exit Axis Capital amid IPO surge in India

Axis Capital leadership exits: Axis Capital, a major player in India's financial advisory landscape, is witnessing a series of high-profile departures, with two senior investment bankers, including the head of its equity capital markets (ECM), resigning. This comes at a time when the Indian stock market is experiencing a surge in initial public offerings (IPOs), adding to the challenges faced by the firm.

Ashish Kumbhat, who served as the head of Axis Capital's Equity Capital Markets practice, and Amit Jain, a managing director, have chosen to step down from their roles, according to three unnamed sources familiar with the matter. Both executives had dedicated over 15 years to Axis, as indicated by their LinkedIn profiles.

Axis Capital, a subsidiary of India's fourth-largest private lender, Axis Bank, played a crucial role in advising on several significant public offerings in the country, including the $500 million offering by condom-maker Mankind Pharma last year.

As of now, there has been no official comment or response to queries seeking clarification from Amit Jain, Ashish Kumbhat, or an Axis spokesperson.

In the fiercely competitive market for advising companies on stock listings, Axis Capital faces competition from local giants like Kotak Mahindra and ICICI, as well as global banking giants such as Morgan Stanley and JP Morgan. However, the recent exits may pose challenges for the firm, especially as it slipped from the 6th position in 2022 to the 9th spot in India's IPO fee-earning tables among banks, as per LSEG equity capital markets December data.

India's stock markets recently surpassed Hong Kong to become the world's fourth-largest by market capitalisation. Analysts predict a record IPO activity this year, driven by political stability and a growing economy.

Currently, Axis Capital is actively involved in advising on various deals, including the upcoming IPO of Ola Electric, India's largest electric-scooter manufacturer, which aims to raise $662 million.

The departures of Kumbhat and Jain follow the exit of Axis Capital's two co-CEOs, Chirag Negandhi and Salil Pitale, within six months of each other. Chirag Negandhi left the firm in September, as reported by Reuters, while Salil Pitale departed earlier this week, according to Bloomberg. To fill the leadership vacuum, Axis is reportedly bringing in a new CEO, Atul Mehra, from rival bank JM Financial, although Mehra declined to comment on the matter.

(With Reuters inputs.)