Functions of a merchant banker…..
The following comprise the main functions of a merchant banker:
Management of debt and equity offerings:-
This forms the main function of the merchant banker. He assiststhe companies in raising funds from the market. The main areas of work in this regard includes : instrument designing, pricing the issue,registration of the offer document, underwriting support, andmarketing of the issue, allotment and refund, listing on stockexchanges.
Placement and distribution:-
the merchant banker helps in distributing various securities likeequity shares ,debt instrument, mutual fund product, fixed deposit,insurance products, commercial paper to name a few. The distributionnetwork of the merchant banker can be classified as institutional andretail in nature. the institutional network consist of mutual fund, foreigninstitutional investor, private equity funds, pension fund, financialinstitution etc. the size of such a network represents the wholesalereach of the merchant banker. The retail network depends onnetworking with investors.
Corporate advisory services:-
Merchant bankers offer customized solutions to their client’sfinancial problems. The following are the main areas in which theiradvice is sought.