FCH Mba785m
FCH Mba785m
FCH Mba785m
Course Objectives
This course aims to prepare students for an Analyst role in a Capital Markets division of an Investment Bank. This
course will emphasise on the practical aspects of an Investment Banking job and the finance theory required for
the same. This course proposes to touch upon strategic, procedural, analytical, legal and accounting aspects of
several Investment Banking activities. The course will be taught in three modules. The first module provides
introduction to Capital Market Instruments and the role of Investment Bankers in the Capital Markets. This
module will also introduce the strategic choice between debt and equity. In the second module, the students will
gain an in-depth understanding of the Equity Capital Markets Division of an Investment Bank. The module will
cover topics such as IPOs, FPOs, Rights Issues, Private Placement, Share Buy-Backs and Delisting. Finally, the
third module will focus on Debt Capital Markets Division of an Investment Bank. This module will touch upon
Bond Issues, Convertible Bonds, Loan Syndication, Project Finance and Securitization.
Course Contents:
S. Topic No. of
No. Sessions
Module 1: Introduction
1 Introduction: Structure of an Investment Bank, Introduction to Primary Capital Markets, 2
Different types of Financial Instruments and their uses from a firm’s perspective,
2 Capital Structure Decision: Theories for choice between Debt and Equity 1
Module 2: Equity Capital Markets
3 Initial Public Offerings: Strategic motivation for going public, accounting treatment of 3
new issues, IPO process, role and fee structure of an Investment Bank, Underwriting, Green
Shoe Options, and IPO Underpricing,
2
4 Follow-on Public Offerings, Rights Issues and Private Placement: Strategic motives, 2
legal considerations, procedural aspects, and investor reactions
5 Share Buy-Backs and Delisting: Strategic motives, legal considerations, procedural 2
aspects, and investor reactions
Module 3: Debt Capital Markets
6 Bond Issuance: Different types of bonds and strategic motives behind their issues, 1
procedural aspects, legal consideations and accounting treatment, workings of Convertible
Bonds.
7 Loan Syndication and Project Finance: Strategic motives, risk mitigation through Project 2
Finance, Covenants, Cash Trap, Cash Sweep and Debt Sculpting
8 Securitization: Strategic motives, investor benefits, Pass Through and Pay Through 1
Securities.
Textbook
a. Giri, P. S. (2021), “Investment Banking: Concepts, Analyses and Cases”. McGraw Hill Education (India)
Pvt. Ltd. 4th Edition
Reference Material
a. Rosenbaum, J. & Pearl, J. (2020), “Investment Banking: Valuation, LBOs, M&A and IPOs”. John Wiley
& Sons. 3rd Edition
b. Damodaran, A. (2012), “Investment Valuation”. John Wiley & Sons. 3rd Edition.
c. Krantz, M. & Johnson, R. R. (2020), “Investment Banking for Dummies”. For Dummies Series, John
Wiley & Sons. 2nd Edition
d. Knee, J. A. (2007). “The Accidental Investment Banker: Inside the Decade that Transformed Wall
Street”. Oxford University Press. 1st Edition.
Evaluation policy
a. Group Project on Data Analytics on Investment Banking Data: 25%. Detailed instructions about the
assignment will be provided during classroom discussions.
b. End-Term Exam: 75%..
1. Make-up exams:
o DOAA guidelines on make-up exams will be followed.
o There will be no make-up exam for the quiz component