Sectorial Analysis

Investment Banking

Investment Banking
Introduction Investment Bankers are intermediaries between the issuers of capital and the investors. They act as clients Agent and play a huge role in assisting corporate and Governments to raise capital. An Investment Banker plays a huge role in the financial system of a country by providing various services. These services are briefly explained as below: Project Advisory Services: The investment bankers assist the companies in examining the viability of the project i.e. they provide Project appraisal services to Companies.

Corporate Advisory Services:

When it comes to advising the corporates, the Investment Banker helps them determine the appropriate level of gearing and advises them whether to leverage, de-leverage or maintain current Debt-Equity levels.

Loan Syndication:

The investment banker arranges tie up loans for clients by determining the ability of the company to repay that loan with various analysis. Thus, it helps those with surplus funds to invest in companies who are in need of funds and can repay those funds.

Venture Capital:

Here, the Investment Banker helps the companies starting the ventures in getting the funds for those ventures by first proper screening of the company and then assisting the venture investors in investing with those ventures.

Mezzanine Financing:

When companies require fresh induction of capital for growth plans as the company is usually profitable, Investment Bankers help them get those funds.

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Sectorial Analysis

Investment Banking

Mergers & Acquisition:

One of the major roles played by an Investment Banker is in the area of Mergers & Acquisition. They provide all necessary services from advising about Mergers & Acquisition till the actual Merger or an acquisition.

Financial Services:

Many other important financial services provided by an Investment Banker include: Restructuring the balance sheet, Reduction of volatility of earnings in a cyclical industry, investment of surplus cash, etc.

Valuation:

They provide valuation services to the companies by bringing down the companys cash flow to the present value using various discounting methods.

Negotiation:

They help in structuring the deal at an optimum price level and thus create maximum value.

Registration of Investment Bankers The registration of Investment Banker is mandatory with Securities & Exchange Board of India (SEBI). Registration must be made to SEBI in form A. The applicant must follow the norms and guidelines as laid down by SEBI.

Major Players in Investment Banking Sector

1. Goldman Sachs 2. JP Morgan 3. Morgan Stanley 4. 5. 6. 7. Barclays India Cholamandalam Investment and Finance Company Ltd Bajaj Finance Ltd. Deutsche Bank Kotak Investment Banking HSBC Nomura Holdings BNP Paribas

8. 9. 10. 11.

12. Citi Group

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Sectorial Analysis

Investment Banking

Reasons Why They Are the Major Players & Services Offered By Them

J.P. MORGAN
J.P. Morgan is one of the world's leading global investment banks, with one of the most extensive client bases in the world. It serves nearly 20000 clients include corporations, governments, states, municipalities, healthcare organizations, educational institutions, banks and investors in more than 100 countries. It provides strategic advice, lend money, raise capital, manage risk, extend liquidity and hold global leadership positions in all of our major business lines.Across their business, their goal is to help clients succeed, contribute to orderly and well-functioning markets and support global economic growth. One of the most important functions they serve is extending credit to companies to help them grow.They have been helping their clients do business for more than 200 years, and in the words of one of their founders, have a proud history of doing "only first-class business... in a first-class way.J.P. Morgan is part of JPMorgan Chase & Co. (NYSE: JPM), a global financial services firm. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity.

BAJAJ FINANCE LIMITED (BFL)

BFL is a diversified non-banking financial company. It is engaged primarily in the business of financing. The Company focuses on three areas: Consumer Finance, small and medium sized enterprises (SME) Finance, and Commercial Lending. Consumer Finance includes 2 wheeler & 3 wheeler loans, consumer durables, personal loan cross sell, salaried loans, co-branded credit card. SME finance includes mortgage, business loans, loan against securities and commercial lending include construction equipment Finance, infrastructure finance and vendor financing.

CHOLAMANDALAM INVESTMENT AND FINANCE COMPANY LTD. (CHOLA)

Cholamandalam is a diversified non-banking finance companies in India, engaged in providing vehicle finance, home loans, corporate mortgage loans and gold loans. Chola through its subsidiaries is also engaged in the business of broking and distribution of financial products. The Companys division includes vehicle finance, home equity, corporate and mortgage finance, gold loans and personal loans. Vehicle finance focuses on vehicle
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Sectorial Analysis

Investment Banking

finance business is in the light commercial vehicles and small commercial vehicles product category. Home equity focuses on self-occupied residential properties as the preferred asset class. Corporate and mortgage finance, where the loans are given to promoters of corporate, high net worth individuals and corporate houses for tenure of one to two years. It operates from over 350 branches across India. The subsidiaries of the Company include Cholamandalam Securities Limited and Cholamandalam Distribution Limited.

BARCLAYS INDIA
Barclays India possesses experience &expertise in providing worldclass banking solutions for corporate and small and medium enterprises& constantly attempt to work towards customer advantages.Their banking solutions are tailored to specifically meet the banking requirements of people. They offer world-class integrated corporate finance and investment banking solutions, cash management and trade services along with balance sheet and advisory services.The company delivers banking solutions across all key industry sectors, through a team which is armed with deep understanding of the day-to-day challenges and longer term sector opportunities. It promises personal, in-depth support and relationship continuity from a dedicated client relationship team for our clients.Their relationship management team has collective experience of over 80 years in corporate banking across all industry sectors.Their services are available to onshore and offshore clients including large Indian corporate, multinationals and SME's. Its client-centric approach delivers a full range of solutions by leveraging our domestic balance strength with the reach & in-depth expertise of their global network. Its strength is reflected in high ratings from the main credit agencies.

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