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Merchant Banking

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Origin of MB

Origin of MB Italy Later in France PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

ItalyOrigin of MB Later in France PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Later in FranceOrigin of MB Italy PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Merchant Banking in India

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Grindlays bank in India, which got license from in India, which got license from

RBI (1967).

Activities of Grindlays bank:Grindlays bank in India, which got license from RBI (1967).  Capital issue management , 

Capital issue management,

Financial consultancy

Recognizing the reqts of emerging entrepreneurs for diverse FS

Financial Servicesthe reqts of emerging entrepreneurs for diverse FS Production Planning Sys design Market research Management

Production Planningof emerging entrepreneurs for diverse FS Financial Services Sys design Market research Management consultancy services

Sys designfor diverse FS Financial Services Production Planning Market research Management consultancy services PREPARED BY

Market researchdiverse FS Financial Services Production Planning Sys design Management consultancy services PREPARED BY MS.S.SANGEETHA,

Management consultancy servicesFS Financial Services Production Planning Sys design Market research PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Later Citi bank – sets its division (1970) Tasks undertaken :  Assisting new entrepreneurs

Later Citi bank sets its division

(1970)

Tasks undertaken:

Assisting

new entrepreneurs &

existing units

in the evaluation

of projects & Raising funds through

Borrowing &

Issue of equity

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Recommendations of banking

commission 1972

Indian banks should start MB services as part

of their multiple services they could

offer the clients

SBI Started MB Division in 1972

In initial years it rendered :

Corporate advice and Assistance to small & medium entrepreneurs.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Followers of SBI

Central Bank of India

Bank of India

Syndicate bank

1977 1978
1977 1978
1977 1978

1977

1977 1978

1978

Bank of Baroda

Standard Chartered Bank

Mercantile Bank

United Bank of India

United Commercial bank

Punjab National Bank

Canara Bank

IOB

Late 70’s

& Early

80’s

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Development Banks

ICICI (1973)Development Banks IFCI (1986) IDBI (1991) PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

IFCI (1986)Development Banks ICICI (1973) IDBI (1991) PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

IDBI (1991)Development Banks ICICI (1973) IFCI (1986) PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Boom in MB- mid 70’s

Sponsored by banks, financial institutions, NBFCs, brokers.

Activities / services

Corporate

Counseling

Project

Counseling

Loan

Syndication

Portfolio

Debenture

mngt

trusteeship

M&A

Takeovers & Acqn

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Differences between MBs & CBs

Commercial Banks

Debt & Debt

related finance

Avoids risks.

They are merely

Financiers.

Merchant Banks

Equity & Equity related

finance (money & capital market)

Management oriented.Willing to

accept risks.

Many activities like corporate counseling & project counseling, M&A, takeovers,

restructuring, Discounting &

Rediscounting ST papers etc.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Till 1992, - no definition / no

Till 1992 , - no definition / no set of rules & regulations. PREPARED BY MS.S.SANGEETHA,

set of rules & regulations.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

1992 SEBI’s formation

MB’s mandatory to register with SEBI.

Registration is must

Capital issues (pre & post issues),

Portfolio mngt,

M&A.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Services rendered by MB

Extending

finance

for

investment in projects

Assistance

in

financial

management

Raising Euro Dollar loans

Issue

of

foreign

currency

bonds

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Financing export of capital goods, ships & railways, Hydro power

installation,

Financing of HP transactions

Equipment leasing, mergers & takeovers

Valuation of assets

Investment mngt

Promotion of investment trusts

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

External Commercial Borrowings (ECB) are defined

to include

Commercial bank loans,

Buyer's credit,

Supplier's credit,

Securitised instruments

such as floating rate notes,

fixed rate bonds etc.,

Credit from official export

credit agencies

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Commercial borrowings from the

private sector window of multilateral financial institutions such as IFC,

ADB, AFIC (Asian Finance and Investment Corporation Ltd ), etc. and

Investment

Institutional

by

Foreign

Investors (FIIs) in dedicated debt funds

Applicants will be free to raise ECB from any internationally recognised source like banks, export credit

agencies, suppliers of equipment,

foreign collaborations, foreign

equity - holders, international

capital markets etc

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

FCCB’s:

A type of convertible bond issued in a currency different than the issuer's domestic currency. In other words, the money being raised by the issuing company is in the form of a foreign currency.

FCCB

can

be

converted

into

Indian

Shares

or

American Depository Shares (ADS).

FCCB have been extremely popular with Indian

Corporate for raising Foreign Funds at competitive

rates.

FCCB are treated as Foreign Direct Investment

(FDI) by Government of India.

They

are

countries

called

in

different

names

in

different

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

ECB/FCCB can be raised under Automatic route ( for specified Industries only on meeting specified conditions) or on RBI approval.

Reliance Energy Limited, has issued

two series of FCCB till date, first being

US$ 120 Million, 0.5 per cent FCCB

due on 25th Sep. 2007 and other US$

178 Million, ZCB due on 29th March,

2009.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

• All MB’s don’t offer

• All MB’s don’t offer all services. • Specialised in different services PREPARED BY MS.S.SANGEETHA, SENIOR

all services.

Specialised in different

services

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Definition of MB- by SEBI

Definition of MB- by SEBI A MB has been defined as any person who is engaged

A MB has been defined as any person who is engaged in the

business of issue management either by

making arrangements regarding selling, buying or subscribing to securities or

acting as a manager, consultant, adviser or

rendering corporate advisory services in

relation to each issue mngt

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Functions

Corporate counseling

Project counseling

Pre invt studies Capital restructuring Credit syndication &

Project finance Issue mngt & Underwriting Portfolio mngt WC finance

Acceptance credit &

Bill Discounting M&A, takeovers

VC financing

Lease financing Foreign currency finance

Fixed deposits Broking

Mutual Funds Relief to sick industries

Project appraisal

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Corporate counseling

Providing guidance - diversification

based on Govt’s economic & licensing policies

Undertaking appraisal of pdt lines,

analysing their growth & profitability &

forecasting future trends.

Rejuvenating old line companies &

ailing sick units by appraising their tech & process, Assessing the reqts & restructuring the capital base

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Commissioning of diagnostic

studies

Assessment of revival prospects & planning for rehabilitation

through modernisation & dvfn & revamping of

the financial & orgn’al structure

Arranging for the approval of the

financial institutions/ banks for

schemes of rehabilitation involving financial

relief .

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Providing assistance in getting loans from financial inst for cap exp , and the requisite credit facilities from the bank

Monitoring of rehabilitation

schemes

Exploring possibilities of takeover

of sick units & providing

assistance

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

IDLC

Corporate Counseling :

Provides

corporate performance in terms of

prolonged existence and survival, steady growth through better working results and provide suggestions and opinions to take corrective actions for solving corporate problems and help by restructuring the corporate set-up if necessary.

advice

to

better

ensure

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

IDLC of Bangladesh Ltd. (IDLC)- the

largest Non Banking Financial Institution in Bangladesh and a major

merchant banker, has formed a

strategic alliance with SBI Capital Markets Limited (SBI Caps).

SBI Caps is the largest investment bank

in India and subsidiary of India’s

largest bank, the State Bank of India.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Project counseling

Reviews project ideas/ project profiles

Advice on procedural aspects -

project implementation

Review of technical feasibility

Viability study

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Project counselling

Assisting TCO in preparing pjt reports & make mkt surveys / review

Assisting preparation of project reports in

financial angle, & advising & acting on various procedural steps including Govt consent.

Assisting in obtaining approvals

licences/permissions/ grants from

govt agencies in the form of letter of indent, industrial licence, registration & govt approval

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Providing

guidance

to

Indian

Entrepreneurs for making

invts

in

JV’s

Indian projects in India & in Indian

overseas.

Identification

avenues.

of

potential

invt

Arranging & negotiating foreign

collaborations, amalgamations,

mergers & takeovers

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Carrying out precise

capital structuring & shaping the pattern

of financing.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Preparation of pjt profiles &

feasibility studies based

on preliminary pjt ideas, covering

the technical, financial inst & banks

Advising & Assisting clients in

preparing applications

for financial assistance to

various national, state inst & banks.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Project Counseling:

IDLC contributes to the basic idea that

Company , as a promoter, will initially pick up for a new project or an industrial activity.

They systematically develop company’s

idea into a plan or scheme and help preparing the appraisal and project feasibility report including its financing

structure.

IDLC also prepares complete feasibility report for BMRE project.

(Balancing Modernization Rehabilitation &

Expansion)

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Pre investment studies

Fin’l & economic viability

In-depth investigation of envt & regulatory factors,• Fin’l & economic viability  location of RM, Supplies, DD project & financial reqts •

location of RM, In-depth investigation of envt & regulatory factors, Supplies, DD project & financial reqts • Identifying

Supplies,of envt & regulatory factors, location of RM, DD project & financial reqts • Identifying &

DD project &of envt & regulatory factors, location of RM, Supplies, financial reqts • Identifying & short listing

financial reqtsfactors, location of RM, Supplies, DD project & • Identifying & short listing projects . •

Identifying & short listing projects.

Studies fgn companies willing to have joint ventures

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Capital Restructuring Services

Examining capital structure of the client co. Preparation of memorandum for the Controller of capital issues

Suggesting alternative capital

structure conforming legal reqts.

Preparing memorandum covering

valuation of shares & justifying

the level of premium applied for

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Memorandum of association

Name

Registered office

Background

Objectives

Any grants availed

Name, address, occupation of the

members of the management.

Signature

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Suggesting ideal capital

restructuring for sick units

and advising the client co’s on

the extent & means of bringing

fresh capital into business

Cap restructuring may cover mergers, takeovers & amalgamations, involving modernisation /dvfn of the

existing pdn sys & the units.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

IDLC

With improper corporate structure of the customers company, the company may

experience high financial risk, low or no

growth, etc. IDLC helps to redesign the capital and provide an appropriate

structure so that they may experience an

optimum growth and minimum risk.

IDLC will helps to diagnose the financial

problems of the customers company and

provide the customers the customized solution for the company through

financial engineering.

Credit Syndication

Estimating total cost of

the

undertaken

project

to

be

Drawing up a financing plan for the total project cost

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Credit Syndication

Preparing

loan

application

for

financial assistance

 

Selecting

inst

&

banks

for

participation in finance

Follow up of term loan application

with the financial inst & banks &

obtaining approval for their respective

share of participation

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Credit Syndication

Arranging bridge finance

Assisting

of

formalities for drawing of

term finance sanctioned by

institution by expediting legal

documentation formalities,

drawing up agreements

in

completion

Assessing WC reqts.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

SBI Caps has been a leading player in the Indian

loan syndication market. It has been ranked first

in Asia-Pacific for project finance syndication by

Thomson Project Finance International.

Realising the huge potential in the loan syndication

market, the investment bank recently tied with IDFC for syndication of debt financing of infrastructure projects.

Some Japanese banks lending to Indian Corporates are the Sumitomo group and Mizuho group.

New players -- Merrill Lynch, Lehman Brothers and Donaldson, Lufkin & Jenrette, the Equitable unit -- have started their own loan syndication businesses.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Issue Management

Preparation of an action plan

Preparation of budget for the

expenses for the issues

Preparation of CI application &

assisting in obtaining consent

/ acknowledgement

Drafting of prospectus

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Issue Management

Selection of institutional &

brokerS, underwriters for

syndicating / underwriting

arrangements.

Selection of Issue houses & advtg

agencies for undertaking pre &

post- issue publicity

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Issue Management

Obtain

institutional

for

publication of the prospectus & application forms, as well as their dispatch, if necessary

underwriters

approval

&

from

stock

exchanges

Providing assistance launching the issue in

the form ofadvertisement campaigns

by

conferences etc

holding

press,

brokers’

and

investors’

Coordination with the Underwriters, brokers & bankers to the issue, & the stock exchange

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Issue Management

Providing advice on the design of a

sound

capital

structure

acceptable to financial institutions.

Determining the quantum , terms

and

timing

of

the

public

issue of different forms of securities

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Issue Management

Arranging

for

Stock

exchange

Clearances & listing of Securities

Liasioning & Coordination with

various constituents of the public

issue to make the function of

issue mngt successful.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Public Issue can take place in 3 forms

Prospectus

Offer for sale

Private placement

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Public Issue thro’

Common method

issue

of

public

thro’ Prospectus.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

The information required by the

companies Act & SEBI are furnished

in the prospectus.

When the prospectus is ready

sent tofurnished in the prospectus . When the prospectus is ready SEBI (for vetting & clearance) Filed

SEBI (for vetting & clearance)

Filed with the Registrar of companies

Brokers canvass the subscription

(Members of the stock exchange)

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Offers for sale

• Offers thro’ the intermediary of issue house/ firm of stock broker

Issue of shares / Debentures

Co Sells entire house

Issue of shares / Debentures • Co Sells entire house Issue at agreed price(par value) PREPARED
Issue of shares / Debentures • Co Sells entire house Issue at agreed price(par value) PREPARED

Issue

at

agreed

price(par value)

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Private Placement

Direct sale of securities by a company

to investors

LIC UTI GIC SFC
LIC
UTI
GIC
SFC

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Role of Merchant Bankers

Merchant Bankers

appoint

Brokers

Principal Agent

Bankers to issue

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Pricing of the Issues

The SEBI guidelines (1992) for cap issues

have opened the cap mkt for free pricing.

Pricing done by co’s with consultation with MBs.

An existing Listed company & a new co

set up by an existing co with 5 years of track record.

An existing Unlisted company going in for public issues for the 1 st time & 2 1/2 years of track record of constant

profitability can freely price the issue.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Reliance com’s- merchant

bankers

Goldman Sachs, Deutsche Bank, Morgan

Stanley and UBS

The proceeds raised from the IPO will be used to part finance expansion plans announced last year, which include laying 50,000 km fresh undersea cable in regions

where there is dearth of international

bandwidth. The expansion plan could entail an investment of about 1.5 billion dollar (nearly Rs 7,000 crore).

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Premium

Premium will be based on

Net Asset Value

Profit Earning Capacity

Market Price

Justification of price has to be

stated & included in the prospectus.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Rights issue

New shares are offered to the existing

shareholders.

Only in equity shares

Can be done only after 1 year of the

first issue

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Prospectus

Sec2(36)of the Co’s Act 1956

Is any document described/ issued as a

prospectus & includes any notice ,

circular, advt or other document inviting deposits from the public, inviting offers

from the public for the subscription or

purchase of any shares in or debentures of a body corporate

Registered with the Registrar

Advertised in newspapers atleast 10 days

before opening of subscription

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Subscription list -Minimum period

for which the company will continue to receive application.

Must be open atleast for 3 days

Minimum subscription is fixed at 90% of the issued capital to the public

within the

Has

to

be

subscribed

stipulated period after the issue of the prospectus , if not to be returned

to the applicants.

In case of over subscription, partial allotment is made

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Marketing

After the despatch of Prospectus , the MB arrange a meeting with the representatives & advertising agencies to finalise

Date of opening

Closing of issue

Registration of Prospectus

Launching publicity campaign

Fixing date of Board meeting to approve & sign prospectus

Pass necessary resolutions.

Security issues are to underwritten . SEBI has made it mandatory.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Post Issue management

Collection of application forms & (applicant should submit only one

application )

Statement of amount received from bankers

Screening Application

Deciding allotment procedure

Mailing of allotment letters , shares

certificates & refund orders.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Role of Registrars

Receive application

Verify

Submit the basis of allotment to the stock exchange

ensure that the

processed &

allotment /refund orders are sent

They

have

to

application are

within 70 days of date of close of issue.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

After

the

approval

by

the

exchange and

the Board

Stock

The Auditor has to certify the allotment

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Underwriting the public issue

Guarantee given by underwriter at under subscription is that the amount underwritten would be subscribed by him.

Only Category I & II & III MBs are permitted to underwrite an issue.

Lead managers underwrite mandatorily 5% of

issue /2.5 lakhs whichever is less.

Banks /MBs cannot write > 15% of any issue.

The underwriting commission may not

exceed 5 % on shares and 2.5 % in case of

debentures.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Underwriting by Capital

Market Services Limited

Till

to

date

they

underwritten

companies Taka.372.59 million.

shares

of

have

27

valuing

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Types of Underwriting

Syndicate Underwriting:- two or more agencies or underwriters jointly underwrite an

issue of securities.

Sub-Underwriting:- is one in which an underwriter gets a part of the issue further

underwritten by another agency.

Firm Underwriting:- is one in which the underwriters apply for a block of securities.

Under it, the underwriters agree to take up

and pay for this block of securities as ordinary subscribers in addition to their commitment as underwriters.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Managers /Consultants/Advisers to

the Issue

SEBI

Managers /Consultants/Advisers to the Issue • SEBI at least one authorised MB • Not MB should

at least one authorised MB

Not

MB should be

associated as lead managers, advisers &

consultants to a public issue

than

2

more

Issue

>100

max.

associated as Lead Managers

crores

of

4

MBs

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Size of issue

No. of. LMB

Less than Rs.50 Cr

2

Rs.50 cr Rs.100 cr

3

Rs.100 cr Rs.200 cr

4

Rs.200 Cr- Rs.400 cr

5

> Rs.400 cr

5 or more as agreed by

SEBI

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

MBs has to be aware of

Monetary & Fiscal policies of the Govt.

Financial statements of various corporate sectors.

Secondary market position.

Competition faced by the industry.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Bajaj Capital

Provides

Merchant Banking Co-ordination

& Advisory Services for

Preparation of prospectus/ letter of offer (s)

Liasioning with authorities mainly SEBI,

ROC, RBI, Stock exchange (s)

Appointment

agencies

of various intermediary

Marketing of issue (s)

Listing of securities

Compliance of other pre issue and post issue formalities

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Portfolio Management

Maintaining

proper

combination

of

securities in a manner that they give

maximum return with minimum risk

Every investor is interested in

safety,

liquidity &

profitability of his investment.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Portfolio Management

Undertaking invts in securities

Undertaking invts for NRI’s both repatriation and non

repatriation basis. (Bajaj Capital)

March 1991

US$ 14.0 billion

March 2007

US$ 41.2 billion

March 2008

US$ 43.7 billion

NRI deposits in India

Undertaking review of PF invt

Safe custody of securities in India & Overseas

Collection of RoI & ploughing back the profits

Invt advisory services to the investors & other related services

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Portfolio Management

Providing advice on selection of invts

Carrying out a critical evaluation of invt

portfolio

Securing approval from RBI for the

purchase / sale of securities (NRI Clients)

Maintaining invt records

Collecting & remitting int & dividend on invt

Providing tax counselling & filing tax

returns through tax consultants.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

CMSL (credit market services ltd) is a licensed Merchant Bank

carrying out functions like

issue management,

portfolio management and underwriting

international tax advisory services both home and abroad

Religare- Investment Banking,

Corporate Finance,

Portfolio Management Services,

Equity & Commodity Broking,

Insurance and Mutual Funds.

IL&FS (Infrastructure leasing & financial services)

* Wealth Management Services

* Portfolio Management Services

* Securities Broking - Equities & Derivatives

* Depository & Custodial Services

* Merchant Banking

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Working Capital Finance

Assessment of WC reqts Preparing the necessary application to negotiations for the sanction of appropriate credit facilities.

Providing assistance in negotiations with all the banks, & suggesting a sharing

pattern of credit limits amongst

participating banks, where more than one bank is involved.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Acquarius Capital & Financial Services

Provides services related to banking and

financial institution

External Commercial Borrowing,

Project Finance,

Term Loan,

Working Capital,

Letter of Credit Discounting

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Acceptance Credit & Bills

Discounting

Accepts & discounts B/E

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Merger and Acquisition

Specialised service provided by

the merchant banker

Undertaking mngt audits to

identify areas of corporate

in

formulate

for

strength

order

&

weaknesses

to

&

help

directions

guidelines

future growth

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Merger and Acquisition

Undertaking studies on a global basis

mkts, fgn

overseas

to

locate

collaborations

&

prospective

JV

associates.

Examining

the

pros

&

cons

of

 

proposals & formulating schemes for

financial reconstruction, M&A

Obtaining approvals from shareholders,

depositors,

authorities

creditors,

Govt

&

other

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Merger and Acquisition

Monitoring

the

M&A Schemes

implementation

of

Identifying

Orgns

Characteristics

with

Matching

Assisting in the compliance of legal

reqts

Advising on cap reorgn of business

enterprises

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Advisory services relating to Mergers &

Takeovers

Once the approval is done, the MBs

appraises M/T proposal

Once the approval is done, the MBs appraises M/T proposal Financial viability Technical Feasibility  Negotiates

Financial viability

Technical Feasibility

Negotiates

payment Gets approval from the GOI /RBI. Drafts scheme of Merger & obtains approval from the financial institutions.

purchase

consideration

&

mode

of

Bajaj capital

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Reasons for M&A

Unused capacity

Lack of mftg space for the purchaser

Advantages of economies of scale

Benefits of VI

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Venture financing

Originated in US

Popular 60’s & 70’s.

High

risk-

high

projects

reward

New technology Co’s.

In India IFCI, ICICI,IDBI

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

VC financing really started in India in

1988 with the formation of Technology

Development and Information Company of India Ltd. (TDICI) -

promoted by ICICI and UTI.

State level financial institutions started VCs like

Gujarat Venture Finance Ltd. &

APIDC

(Andhra

Pradesh

Industrial

Dvlpt Corp) Venture Capital Ltd.

Sources of these funds financial

institutions, foreign institutional investors or pension funds and high

net-worth individuals. (Angel groups)

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

First Private Venture Capital

Sponsor

Credit Capital Finance Corporation (CFC)

Capital Sponsor Credit Capital Finance Corporation (CFC) Promoters Bank of India, Asian Development Bank &

Promoters

Bank of India,

Asian Development Bank

&

Commonwealth

Development Corporation

Bank & Commonwealth Development Corporation Credit Capital Venture Fund PREPARED BY MS.S.SANGEETHA,

Credit Capital Venture Fund

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Chrysalis

Capital

-

Venture

capital

funding for IT companies

Cipher Securities - Offers startup funding, venture capital & strategic

investment services

CoolStartups - Initial stage mentoring, services & funds to startups

capital

fund raising consulting Draper - US VC company investing in Indian IT start-ups Gujarat Venture Finance - Venture

Dawn

Consulting

Venture

-

finance & managerial support services

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

India Technology Fund - Boston, MA

based hedge fund investor

- incubator support and services

Indiaco

Virtual

and

physical

IndianVentureCapital

-

Interactive

forum for venture capitalists & startups

Intel

India

-

Software

venture

capital

development

funding

development,

&

market

Jumpstartup's VC Database - Listing of Indian venture capital firms Mantra Consultants - Venture capital

consultancy and investment banking

services

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Pacific Century Group Ventures - Fund management, venture capital & corporate finance

Sameer Gandhi Bolts to Accel Partners

- Sameer Gandhi of Sequoia Capital

has joined Accel

Satwik

Ventures

-

Venture

capital

funding and positioning services

Silicon Spot - Promotes dotcom and investor community relations

SmartCapital - Venture financing for

small

companies

IT

and

telecommunications

TDICI - The VC pioneers in India

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Technology Capital Partners - Provides assistance in making business plans and accessing venture capital funds exclusively to information technology

companies.

VC Addresses - Address of VC firms from VC Line

stage

VCFirm.com

Seed

&

early

-

venture capital firm

VCline.com - Venture capital guidelines

and advisory services

Venture Finance - Portal on venture finance

Venture

formation

Bazaar-Venture

services

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Registration

For grant of certificate as VC’s:

Registered with SEBI and

Application fee pay Rs.25,000 and

Registration feeRs. 5,00,000

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

The venture capital investment in India till the year

2001 was continuously increased and thereby

drastically reduced. Venture capital investors slow

down their investment.

Years

Growth

1998-99

327 %

1999-00

132 %

2000-01

40 %

2001-02

-4 %

2002-03

-54 %

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Letting

Lease Financing

out

assets

on

lease

for

a

particular time for use by the lessee.

Important services offered:

Providing advice on the viability as an alternative

Providing

advice

the

choice

of

on

favourable rental structure

Providing assistance in establishing lines of lease for acquiring capital

equipment

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Examples

Pan Caribbean Merchant Bank (PCMB)

offers lease financing for BMW customers

Bajaj capital

SBI, Canara Bank, ICICI, IDBI, IFCI

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Foreign Currency Financing

Providing assistance

turnkey projects & construction contract projects

(supply, erection and commissioning of boilers,

power plants, transmission lines, sub-stations, plants for manufacture of cement, sugar, textiles

and chemicals)

In appln to working groups, liaison with RBI,

ECGD & other institutions.

In

Opening

&

Operating

Bank

accounts

abroad.

In obtaining export credit facilities from EXIM

bank capital, packing credit

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Financing Indian JV abroad & Providing

Assistance in fgn collaboration

Advice in legal laws, pdt risk, Govt regnsshareholdings, exge restrictions, taxation, dividends,

incentives & subsidies etc.

Providing guidance on negotiating fgn financial & technical collaboration

agreements within the framework of Govt

policies, rules & regulations, assistance in the formation of corporate ventures in India

in collaboration with suitable foreign parties.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Foreign Currency Financing

Arranging

Foreign currency loans under buyer’s credit scheme for importing goods

Deferred payment guarantees under

suppliers credit scheme for importing capital goods.

LoC, Pre shipment Credit, Post shipment credit, bridge loans (bajaj

capital)

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Forms of foreign currency

Procuring euro currency in the form of mngt & syndication of Euro currency

loans, bonds, FRN, US Commercial

papers, with the assistance of International Treasury Mngt Ltd (ITM)

Eg: The National Bank of Abu Dhabi

(NBAD) announced the launch of its $2 billion settled floating rate subordinated

convertible notes due in 2018.

Cross border leasing packages

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Capital & Credit Merchant Bank Ltd is engaged in

taking deposits,

granting loans and

trading in foreign currencies and

government securities.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

SBI

Pre-Shipment Export Credit offers Pre-shipment Credit (Packing Credit) to the exporters, for financing purchase,

processing,

manufacturing or packing of goods

prior to shipment.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Post-Shipment Export Credit

SBI extend Post-shipment Credit that is

any loan / advance granted or any other

credit provided by SBI for purposes such as export of goods from India.

The exporter has the option to avail of

pre-shipment and post-shipment credit

either in rupee or in foreign currency.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

PRE-SHIPMENT CREDIT IN FOREIGN CURRENCY(PCFC)

SBI’s Pre-shipment Credit in Foreign Currency

Avail it to meet the customers manufacturing,

processing and packing fund requirements at

international interest rates.

Offers4 different currencies the US Dollar,

Pound Sterling, Euro and the Japanese Yen.

Has 64 branches across the country PCFC

facility

Their Foreign DepartmentKolkatta, is the

nodal centre for raising and deploying offshore

and onshore funds for lending under PCFC.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Brokering FD

Amt that can be raised by the company in the form of FD from the

public & loans from the shareholders

(Ranbaxy, Jindal steel & power)

Drafting of advtg for inviting deposits

Filing

a

copy

of

advtg

with

the

Registrar of Companies for registration

Arranging for the issue of advtg in

the

reqd

by

newspapers,

Companies Act

as

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Brokering FD

Drafting & printing of application forms

Making arrangements for the

collection of deposits at the banks

branches

Submission

of

periodical

statements to companies concerned

Making arrangement for payment of

interest amounts

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Brokering FD

Providing advice to the company on the terms & Conditions of FDs &

Deciding on the appropriate rate of int, keeping in view the prevailing capital &

money mkt conditions

Helping the company to observe all the

rules & regulations in this connection

Assisting in Mntce of records & registers for this purpose.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Deposits under corporate FD’s :

Governed by Companies Act under Section 58A.

Unsecured.

Currently corporate fixed deposit rates

Small companies 11%,

Big companies offer 10.5% interest.

Banks 6-7% and these rates can change easily.

Corporate deposits Do not change their rates during a six month to one year period, which provides stability to the investment.

Tata Motors, Mahindra & Mahindra and Indian Hotels all offer corporate FD’s and are doing well.

People usually invest in lakhs and not thousands in

corporate FD’s.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

The interest paid half yearly basis.

Tata Motors was authorised to raise up to

Rs 1,931.48 crore from the public

through fixed deposits and has already

raised over Rs 700 crore.

Majority of the companies who raise money

via fixed deposits have quarterly interest

payouts and the interest rates vary from

9-13% based on the options one chooses.

It is a threat to mutual fund

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Bajaj capital Integrated Enterprises (India) Limited

Integra Capital Management

Ltd.

ICICI LOMBARD

Karvy consultancy

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Mutual Funds

Pooling up public savings

Investing the funds in a diversified portfolio of shares & debentures belonging to well managed & growing

companies

Earnings investors a steady ROI with an assurance of capital assurance

Engaging in the business of acqn, holding/ disposal of

securities

Making invt in any commercial paper floated by Central Govt, RBI, any local authority, any fgn Govt, fgn bank/ any other authority outside India & approved by RBI.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Mutual Fund Companies in India

ABN AMRO Mutual Fund

Birla Sun Life Mutual Fund

Bank of Baroda Mutual Fund (BOB Mutual Fund)

HDFC Mutual Fund

HSBC Mutual Fund

ING Vysya Mutual Fund

Prudential ICICI Mutual Fund

Sahara Mutual Fund

State Bank of India Mutual Fund (SBI)

Tata Mutual Fund

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Relief to Sick industries

Rejuvenating old lines & ailing units by

Appraising their technology &

process,

Assessing their reqts

Restructuring their capital base

Evolving the rehabilitation

packages which are acceptable

to financial institutions & banks

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Relief to Sick industries

Exploring the possibilities of M&A

Assisting in obtaining approvals from

the BIFR & other authorities under

the

Sick

Industrial

Companies Act 1985

Monitoring the implementation of

rehabilitation schemes, M&A

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Example- Indian Drugs & Pharmaceuticals Ltd

IDPL was formally

Board for

Industrial & Financial Reconstruction (BIFR) on the

declared sick

by the

12.08.1992.

A revival package for the company was approved by BIFR on the 10.02.1994.

BIFR heard the case from time to time.

BENGAL CHEMICALS & PHARMACEUTICALS LIMITED (BCPL)- declared sick by the Board for Industrial and Financial Reconstruction

(BIFR) 14/1/ 1993.

A revival package was approved by the BIFR on the 4/4/1995. The revival period was for ten years beginning 1994-95. The company

could achieve a consistent growth of about 20% in the years 1994-95

to 1996-97. The net losses per annum are also came down significantly thereafter.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

M/s.

Khatau Makanji Spinning &

Weaving Mills Ltd. is a sick industrial company , the Sick Industrial

Companies (Special Provisions) Act,

1985 (SICA). On 27 March, 1995, BIFR

sanctioned a scheme for the rehabilitation of the company

Rehabilitation

scheme

has

prepared by ICICI .

been

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Project Appraisal

Financial appraisal

Technical appraisal Economic Appraisal

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Financial Appraisal

viability,

profitability,

ST & LT obligations,

Capital structure analysis

-

LT solvency position

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Technical Appraisal

Technology

Design

Scope & content of the plant

Inputs

Infrastructure facilities

Marketable pdt from the resources

deployed

Plough back - certain %

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Economic Appraisal

Effect of the Project on

employment & fgn

exge.

Impact of the project on

net social benefits / welfare.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

If a fund had net assets of $50

million and there are one million

shares of the fund, then the price

per share (or NAV) ?

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

The current market value of the fund's net assets on that particular day

NAV=

The number of outstanding shares (or)

The total net assets of the fund - any

liabilities. (or)

Example: If the total value of assets in

a fund = $50 million N= one million shares in the portfolio,

Total value of assets in a fund

NAV =

Shares in the portfolio

$50 million = $50/ share

=

1 million shares

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Details of the IPO OF DLF:

Issue period: Between June 11, 2007 and June 14, 2007

Issue : 175,000,000 shares/ 17.5 crores

Issue Size: Rs 8750crores -Rs 9625 crores

Face Value: Rs.2

Method: 100% book building

Price band: Rs.500 to Rs.550 (250 to 275 times >face value)

Rs 8750crores / 17.5 crores= 500;

Rs 9625 crores/ 17.5 crores= 550

Market lot: 10 shares

Minimum order: 10 shares

Retail investor cap: Rs.100,000 maximum

This is really an excellent IPO.

Reasons for the demand for more housing, infrastructure etc.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Global coordinators & Book running lead managers

Kotak invt bank

DSP Merrill Lynch

Senior Book running lead managers:

Lehman bros Securities private ltd

Registrar of the issue: Karvy Computershare pvt ltd

Bankers o the issue: ABN Amro, ICICI, HSBC, Deutsche Bank , citi bank, centurion bank of Punjab, Standard chartered Bank, UTI, Kotak mahindra, HDFC

Refund banks: ICICI, HSBC, Standard chartered Bank

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Public Issue can take place in 3 forms

Prospectus

Offer for sale

Private placement

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Public Issue thro’

Common method

issue

of

public

thro’ Prospectus.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

The information required by the

companies Act & SEBI are furnished

in the prospectus.

When the prospectus is ready

sent tofurnished in the prospectus . When the prospectus is ready SEBI (for vetting & clearance) Filed

SEBI (for vetting & clearance)

Filed with the Registrar of companies

Brokers canvass the subscription

(Members of the stock exchange)

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Offers for sale

• Offers thro’ the intermediary of issue house/ firm of stock broker

Issue of shares / Debentures

Co Sells entire

broker Issue of shares / Debentures • Co Sells entire at Issue house agreed price(par value)
broker Issue of shares / Debentures • Co Sells entire at Issue house agreed price(par value)

at

Issue house

agreed

price(par value)

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Private Placement

Direct sale of securities by a company

to investors

LIC UTI GIC SFC
LIC
UTI
GIC
SFC

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Role of Merchant Bankers

Merchant Bankers

appoint

Brokers

Principal Agent

Bankers to issue

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Pricing of the Issues

The SEBI guidelines (1992) for cap issues

have opened the cap mkt for free pricing.

Pricing done by co’s with consultation with MBs.

An existing Listed company & a new co

set up by an existing co with 5 years of track record.

An existing Unlisted company going in for public issues for the 1 st time & 2 1/2 years of track record of constant

profitability can freely price the issue.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Reliance com’s- merchant

bankers

Goldman Sachs, Deutsche Bank, Morgan

Stanley and UBS

The proceeds raised from the IPO will be used to part finance expansion plans announced last year, which include laying 50,000 km fresh undersea cable in regions

where there is dearth of international

bandwidth. The expansion plan could entail an investment of about 1.5 billion dollar (nearly Rs 7,000 crore).

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Premium

Premium will be based on

Net Asset Value

Profit Earning Capacity

Market Price

Justification of price has to be

stated & included in the prospectus.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Rights issue

New shares are offered to the existing

shareholders.

Only in equity shares

Can be done only after 1 year of the

first issue

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Prospectus

Sec2(36)of the Co’s Act 1956 Is any document described/ issued as a

prospectus & includes any notice , circular, advt

or other document inviting deposits from the public, inviting offers from the public for the

subscription or purchase of any shares in or

debentures of a body corporate Registered with the Registrar

Advertised in newspapers atleast 10 days before

opening of subscription

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Subscription list -Minimum period

for which the company will continue to receive application.

Must be open atleast for 3 days

Minimum subscription is fixed at 90% of the issued capital to the public

within the

Has

to

be

subscribed

stipulated period after the issue of the prospectus , if not to be returned

to the applicants.

In case of over subscription, partial allotment is made

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Marketing

After the despatch of Prospectus , the MB arrange a meeting with the representatives & advertising agencies to finalise

Date of opening

Closing of issue

Registration of Prospectus

Launching publicity campaign

Fixing date of Board meeting to approve & sign prospectus

Pass necessary resolutions.

Security issues are to underwritten . SEBI has made it mandatory.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Condition for Fixation of face value:

Issue prices

Face value

Below Rs 500 per share

Rs 10 per share.

Rs 500 or more

Not below Re 1.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Book Running Lead Manager

The lead merchant bankers appointed by the Issuer

Company are referred to as the Book Running Lead Managers. The names of the Book Running Lead Managers are mentioned in the offer document of the

Issuer Company.

Syndicate Members

The Book Running Lead Managers to the issue appoint

the Syndicate Members, who enter the bids of investors in the book building system. Syndicate Members are intermediaries registered with SEBI who also carry on the activity of underwriting.

Order Book

It is an 'electronic book' that shows the demand for the shares of the company at various prices on a real time

basis.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Authorised capital is that capital which is

decided by the Registrar (recruited under

companies act,1956)as the maximum amount that can be raised from the shareholders.

Issued capital is that part of the authorised

capital which is brought before the public for

subscription.

Subscribed capital is that part of the issued capital that is actually subscribed by the

public.

Paid-up capital is that part of the subscribed capital that is collected by the company as a

part payment. The due part will be collected by

20 crores

18 crores 16 crores 8 crores
18 crores

18 crores

16 crores

16 crores

8 crores

8 crores

the company in the immediate future.

Company cannot raise capital amount more than Authorised Capital unless the Article of Association is amended

by passing special resolution by the share holders with approval of

Central Government and Registrar of Companies.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Bajaj

Capital

is

a

SEBI

approved

merchant

bankers, investment advisors and financial planners.

Their

Products

and

Services

:

Investment Advisory Products , Company fixed deposits, Bonds, Mutual funds, Life

insurance, General insurance, Pension

schemes, Post office schemes, Tax saving schemes, Insurance linked investment schemes, Initial public offerings, Housing

loans, NRI scheme

They are Category II Merchant Banker:

They provide the following services -

Structuring & Syndication, Lease & Hire Purchase, Money Markets, Structuring of Short Term Finance Solutions, Placement of Preference Shares/

Non-Convertible Debentures,

Securitisation of Debt, Private Equity and Venture Capital

Syndications,

Initial Public Offers [IPOs],

Advisory Services, Share Buybacks, Mergers, Acquisition.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

ICICI Lombard.

- Asset Financing,

- Merchant Banking,

- Capital Market Operations,

- Corporate Advisory Services,

- Fixed Deposits.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Integrated Enterprises (India) Limited the

Manufacturer and Services of Investment Avenues,

Mutual Funds,

Corporate Services,

Demat services,

Insurance,

Secondary Market,

Franchisee,

Share News,

e-TDS, (Tax deducted at source)

BPO services,

Depository Registry,

Demat Account,

Fixed Deposits, Bonds, Post office Schemes. -Post office Schemes

Public Provident Fund (PPF),

Post Office Monthly Income Plan

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Integra Capital Management Ltd. -Asset

Financing -Merchant Banking -Capital Market Operations -Corporate Advisory Services -Fixed Deposits.

IL&FS Investsmart Limited - Wealth Management Services, Portfolio

Management Services , Securities Broking -

Equities & Derivatives , Depository & Custodial Service.

Bajaj Capital Ltd - Merchant Banking. -

Resource Mobilisation - Distribution of Mutual Fund. - Investment Advisory -

Money Market - Financial Planning.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

Karvy Consultants Limited

- Stock broking, Depository Participants, Distribution of financial products - mutual funds, bonds, fixed deposit, equities, Insurance Broking, Commodities Broking, Personal Finance Advisory

Services, Merchant Banking & Corporate Finance,

placement of equity, IPOs.

LKP Shares and Securities Ltd.

-Stock

Markets,

Primary

Market

Operations,

Secondary Market Operations, Research, Merchant Banking.

Middle East Capital Group: MECG

- Merchant Banking, Private Equity Funds, And Corporate Finance.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

"Offer document" :

Prospectus public issue or offer

for sale

Letter of Offer rights issue which is filed with Registrar of Companies

(RoC) and Stock Exchanges. An offer

document covers all the relevant information to help an investor to make his/her investment decision.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

"Draft Offer document" offer document in draft

stage. The draft offer documents are filed with

SEBI, at least 21 days prior to the filing of the Offer Document with the RoC/ SEs.

SEBI may specify changes, if any, in the draft Offer Document and the issuer or the lead merchant banker shall carry out such changes in

the draft offer document before filing the Offer

Document with the RoC/ SEs.

The Draft Offer document is available on the SEBI Web site for public comments for a period of 21 days from the filing of the Draft Offer Document with SEBI.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

"Red Herring Prospectus" is a prospectus which does

not have details of either price or number of shares being offered or the amount of

issue. This means that in case the price is not disclosed, the number of shares and the upper and lower price

bands are disclosed. On the other hand, an issuer can state the issue size and the number of shares are determined later.

If the final price are included in the offer document & the offer document filed thereafter with ROC becomes a prospectus.

"Abridged Prospectus" Prospectus + application form of public issues.

PREPARED BY MS.S.SANGEETHA, SENIOR LECTURER, KCTBS

DB Merchant Banking Services Ltd.

Cosmos Co-Op. Bank Ltd.

Punjab & Sind Bank

State Bank of Patiala

State Bank of Hyderabad

Lakshmi Vilas Bank Ltd.

Catholic Syrian Bank Ltd.

Bharat Overseas Bank Ltd.

City Co-operative Bank Ltd

Shamrao Vittal Co-operative Bank Ltd.

Benares State Bank Ltd.