Course Handout

Investment Banking Term: VI (Year 2022-2023)
Course Code: FINM 602 Credits: 3 (20 Session)
Instructor: Nikhil Rastogi Office:

Course description:
IB industry has been instrumental in developments of capital markets through their effective intermediation
function. In spite of the recent turmoil in the IB industry, it still plays a dominant role in the areas of M&A
deal structuring, corporate valuation, corporate advisory, and Public Issue management. The course is
designed to familiarize students with field of investment banking and to make students understand various
functions of investment banks. The contents of this course include financial markets, raising finance from
domestic and international markets, merchant banking, corporate restructuring, valuation, Private equity
funding, and Hedge fund operations. The recent developments in the field will be given due preference
while delivering the course. Students are expected to have through knowledge of spreadsheets and all the
fundamentals of finance.
Prerequisites:
The student should have good understanding of concepts covered in Security analysis course. This
understanding should be coupled with readings from business dailies on the state of Investment Banking.
Prescribed text:
1. Stowell, David P. (2010). An Introduction to Investment Banking, Private Equity and Hedge Funds,
Academic Press (DPS)
2. Cases as indicated
References:
1. Subramanyam, Pratap G (PG). Investment Banking: Concepts, Analysis and Cases. Tata McGraw
Hill.
2. Liaw, Thomas K. (2006). The Business of Investment Banking: A comprehensive overview. John
Wiley & Sons, Inc.
3. Rosenbaum, Joshua & Pearl, Joshua. (2009). Investment Banking: Valuation, Leveraged Buyouts,
and Mergers & Acquisitions. John Wiley & Sons, Inc
4. Subramanyam, Pratap G. (2006). Investment Banking: An odyssey in High Finance. Tata

McGraw Hill.
5. Ellis, Charles D. (2008). The partnership: the making of Goldman Sachs. The Penguin Press.
6. Burrough, Brian & Helyar, John (1989). Barbarians at the Gate: The fall of RJR Nabisco. Harper
Collins.
Pedagogy
• Lecture, case discussion and sessions by practitioners.
Learning Goals and Assessment:
S.No. Learning goals Learning Outcomes Learning Assessment

method
The course aims to impart At the end of the course the The outcomes would be
students should be able to assessed through
1. Functional Proficiency & Knowledge
Integration
• Understand functions • Test
performed by Investment • Comprehensive
Banks Examination
• Understand role of Investment • Assignment
banks in M&A, equity & Debt • Class Participation
financing and asset (CP)
management.
• Understand about hedge funds
and hedge fund strategies
• Understand about private
equity
• Understand about venture
capital and angel investing
• Group Project
• Comprehensive
Examination
2. Analytical and Critical • Analyze the strategies • Test
Thinking Ability undertaken by Investment • Assignment
Banks and hedge funds. • Group Project
• Analyze private equity • Class Participation
deals (CP)
• Comprehensive
Examination
3. Communication Skills • Articulate orally in a crisp • Class Participation
and concise manner (CP)
• Group Project
4. Leadership and • Develop competencies • Group project

Interpersonal Skills needed to function well in • Assignment
teams
No. Parameter Learning Goals Weightage Conducting

assessed on
1 Mid Term Test 1,2 20
2 Assignment 1,2,4 20
3 Class participation 1,2,3 10
10
4 Comprehensive Examination 1,2 40
Total 100
Session Plan
S.No. Topic Concept covered Case Readings

Business of Investment Banking, History of Investment
History, Positions in an Investment Banking, Investment Stowell-
1 Introduction
banking career, Challenges, Banking at Thomas Ch1
Compensation Weisel Partners
Regulation of Regulation In developed markets, Stowell-
2
Securities Industry India Ch2
Merger Valuation, comparable set,
3 M&A Radio One
price, value and transaction multiples
Rationale for Merger, Types of
Merger, Regulation, Considerations Stowell-
4 M&A
in an M&A, Takeover defences, Ch4
Ethical considerations
Stowell-
5 M&A Forecasting Financial Statements Ch 3and
4
6 M&A Preparation of Closing Balance sheet
7 M&A Final M&A Model
8 M&A Valuing Synergy
Stowell
9 M&A Financing Financing Options
ch17
10 M&A Practitioner Session

11 M&A Pitch Book Presentation
12 M&A Pitch Book Presentation

Leveraged Buyout
13 Model and Its implementation
Model
Leveraged Buyout
14 Model and Its implementation
Model
Active Portfolio Strategies, ,

15 Private Banking
Convertible securities, Put Warrants
Structured Products, Investment and
16 Private Banking Financing Innovations, Nifty Delight,
GOALS
Stowell,
Overview of hedge Funds,
Introduction to Ch-10
17 Performance fee, dealing with Readings in class
Hedge Funds and Ch-
illiquidity, Performance Issues
15
18 Venture Capital Term sheet
Pre and Post financing valuation, SpiffyTerm, Inc.: SM86-

19 Venture Capital
Ownership dilution PDF-ENG
SpiffyTerm, Inc.: SM86-
20 Venture Capital Discussion on Term Sheet
PDF-ENG

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Investment Banking Term: VI (Year 2022-2023)

Course Code: FINM 602 Credits: 3 (20 Session)

Instructor: Nikhil Rastogi Office:

4. Subramanyam, Pratap G. (2006). Investment Banking: An odyssey in High Finance. Tata

• Lecture, case discussion and sessions by practitioners.

Learning Goals and Assessment:

S.No. Learning goals Learning Outcomes Learning Assessment

4. Leadership and • Develop competencies • Group project

No. Parameter Learning Goals Weightage Conducting

S.No. Topic Concept covered Case Readings

10 M&A Practitioner Session

12 M&A Pitch Book Presentation

Active Portfolio Strategies, ,

18 Venture Capital Term sheet

Pre and Post financing valuation, SpiffyTerm, Inc.: SM86-

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