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    Investment Banking Note

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    Shwetank Rai
    Investment banking involves raising capital for companies and advising them on financing and merger alternatives, with services including underwriting securities, distributing securities to holders, and providing advisory services for financial transactions. It differs from commercial banking in dealing with higher risk businesses and not being subject to the same capital adequacy regulations. Major investment banks provide a range of financial services globally and in India such as underwriting, trading, mergers and acquisitions advisory, and working with companies to raise capital through public or private means.

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    Investment Banking Note

    Uploaded by

    Shwetank Rai
    88 views6 pages
    Investment banking involves raising capital for companies and advising them on financing and merger alternatives, with services including underwriting securities, distributing securities to holders, and providing advisory services for financial transactions. It differs from commercial banking in dealing with higher risk businesses and not being subject to the same capital adequacy regulations. Major investment banks provide a range of financial services globally and in India such as underwriting, trading, mergers and acquisitions advisory, and working with companies to raise capital through public or private means.

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    investment banking concept

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    Investment banking involves raising capital for companies and advising them on financing and merger alternatives, with services including underwriting securities, distributing securities to holders, and providing advisory services for financial transactions. It differs from commercial banking in dealing with higher risk businesses and not being subject to the same capital adequacy regulations. Major investment banks provide a range of financial services globally and in India such as underwriting, trading, mergers and acquisitions advisory, and working with companies to raise capital through public or private means.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    88 views6 pages

    Investment Banking Note

    Uploaded by

    Shwetank Rai
    Investment banking involves raising capital for companies and advising them on financing and merger alternatives, with services including underwriting securities, distributing securities to holders, and providing advisory services for financial transactions. It differs from commercial banking in dealing with higher risk businesses and not being subject to the same capital adequacy regulations. Major investment banks provide a range of financial services globally and in India such as underwriting, trading, mergers and acquisitions advisory, and working with companies to raise capital through public or private means.

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    Investment banking

    Intro-
    It’s a part of financial services industry & offers an increasingly important range of
    services to corporations throughout the world. I.B is neither an investing agency
    nor a banking organization. Term used to describe the business of raising capital
    from companies & advising them on financing & merger alternatives (capital-
    money)

    What is investment banking?

    I.B is a financial institution that assists individuals, corporations & government in


    raising capital by underwriting and/or acting as clients agent in the issuance of
    securities.I.B assists companies in mergers & acquisitions & provides ancillary
    services such as market trading ,trading of derivatives, fixed income instruments,
    fixed income instruments, foreign exchange, commodities & equity securities.

    I.B raises money by issuing & selling securities in the primary market. They
    assist public & private corporations in raising funds in the capital markets (both
    equity & debt) as well providing strategic advisory services for other types of
    financial transactions.

    Investment bank services


    Organization & management of new financial services.

    Underwriting of issued securities.

    Distribution, involving selling securities to ultimate holders.

    Performing general advisory services,

    Syndicate & research.


    Commercial Banking V/S I.B

    Commercial Banking I.B


    Deals with low risk business. Also risk Deals with high risk, high return on
    taking ability of the bank is monitored business.
    by the regulator.
    Strict capital adequacy norms. Basel II. No capital adequacy norms.
    C.B are regulated by RBI & US federal
    reserve in USA
    I.B are regulated by SEC in USA & all
    regularity authority in India

    Ex Orange (france) had took over Airtel (Africa) date 13/01/2016, deal valuation
    -40-50 cr $

    ** Merger among commercial banks, I.B & insurance companies.

    **Who needs an investment bank?

    Any firm contemplating a significant transaction can benefit from the advice of an
    I.B .A quality I.B firm can provide the services required to initiate & execute a
    major transaction, there by empowering small to medium size companies with
    financial & transaction experience.

    **Role of the investment banker.

    Underwritting,Selling,trading securities, providing financial advisory


    services,restructuring,venture capital, market making, property trading, financial
    engineering, asset securitization, clearing & settlement, money management,
    merger & acquisitions.

    Organization structure

    Front office, Middle office, Back office, Technology


    What a client looks from a investment bank?

    Services offered, Experience, Record of success, Ability to work quickly, Fee


    structure, ongoing support.

    How I.B estimates customer’s potential?

    high attractive Vary attractive


    low marginal attractive
    low high
    Future needs for raising capital

    Customer evaluation matrix-relationship potential


    List of major investment banks

    Investment banks in world Investment banks in India


    Barclays capitol ICICI securities
    Blackstone group Ambit corp finance
    CIBC SBI capital market
    Citi group Kotak Mahindra
    Credit Suisse Enam
    Deutsche bank Merril lynch
    Evercore partners HSBC
    Goldman Sachs Deutsche bank(Delhi Mumbai,Bng)
    HSBC M&S
    JP Morgan ANZ
    Lazard Lehman brothers
    Moelis & comp Goldman Sach
    MS UBS (hyd & Mbn)
    Nikko Securities JP Morgan (Mbn & Bng)
    Bank of America
    Merrill lynch Reliance money

    Other I.B in India

    Bajaj capital,IDFC,Tata investment corporation ltd (TICL),UTI securities ltd.Yes


    bank, Equities & global investment banking.
    SWOT analysis

    Strength
    Wide range of financial services offering
    Efficient employees
    Technological advancement
    Advance infrastructure

    Weakness
    Investor’s unawareness.

    Opportunities
    Huge potential.
    Reform policy

    Threats
    Increasing competition
    Decentralized management
    Unit II
    Equity markets, bonds & private placements

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