Professional Documents
Culture Documents
Submitted by:-
Vinay
CONTENTS
Sr.No.
Chapter I
Preface
Guide Certificate
Declaration
Acknowledgement
Chapter II
Chapter III
Introduction
Significance of the study
Merchant Banking in India
Focus of the Study
Conceptualization
literature Review
Objective &Methodology
Chapter IV
Chapter V
Chapter VI
Bibliography
Introduction
(Conceptual
Framework)
INTRODUCTION
Original Definition: A Merchant Bank is a British term for a bank providing various
financial services such as accepting bills arising out of trade, providing advice on
acquisitions, mergers, foreign exchange, underwriting new issues, and portfolio
management.
The Focus Definition: A Merchant Bank can be generally described as a financial
services company with a private equity investment arm offering investment banking and
ancillary services as well. Because a merchant bank acts not only as an advisor and
broker but also as a principal, a merchant bank has a longer term approach than a typical
investment bank and is highly concerned with the viability of each investment
opportunity and providing the right advice for a strong partnership with each client
company.
In banking, a merchant bank is a traditional term for an Investment Bank. It can also be
used to describe the private equity activities of banking. This article is about the history
of banking as developed by merchants, from the Middle Ages onwards.
Amidst the swift changes sweeping the financial world, Merchant Banking has emerged
as an indispensable financial advisory package. Merchant banking is a service-oriented
function that transfers capital from those who own to those who can use it. They try to
identify the needs of the investors & corporate sector & advice entrepreneurs what to do
to be successful.
The merchant banking has been defined as to what a merchant banker does. A merchant
Banker has been defined by Securities Exchange Board Of India (Merchant Banker)
rules, 1992, 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 manager, consultant, advisor or rendering corporate advisory services in
relation to such issue managemen
They would help us to draw comparison between public & private sector
companies engaged in Merchant Banking activities.
Based upon the comparison, it would help us to determine which sector has more
growth potential & where should one invest his/her funds to maximize the return
at minimum risk.
MERCHANT BANKING
IN INDIA
merchant banker. He assists the companies in raising funds from the market. The main areas of
work in this regard include: instrument designing, pricing the issue, registration of the offer
document, underwriting support, and marketing of the issue, allotment and refund, listing on
stock exchanges.
securities like equity shares, debt instruments, mutual fund products, fixed deposits, insurance
products, commercial paper to name a few. The distribution network of the merchant banker can
be classified as institutional and retail in nature. The institutional network consists of mutual
funds, foreign institutional investors, private equity funds, pension funds, financial institutions
etc. The size of such a network represents the wholesale reach of the merchant banker. The retail
network depends on networking with investors.
Issue Management:
Management of issue involves marketing of corporate securities viz. equity shares, preference
shares and debentures or bonds by offering them to public. Merchant banks act as an intermediary
whose main job is to transfer capital from those who own it to those who need it. After taking
action as per SEBI guidelines, the merchant banker arranges a meeting with company
representatives and advertising agents to finalize
Arrangements relating to date of opening and closing of issue, registration of prospectus,
launching publicity campaign and fixing date of board meeting to approve and sign prospectus
and pass the necessary resolutions. Pricing of issues is done by the companies in consultant with
the merchant bankers.
Financial structuring includes determining the right debt-equity ratio and gearing ratio for
the client; the appropriate capital structure theory is also framed. Merchant bankers also explore
the refinancing alternatives of the client, and evaluate cheaper sources of funds. Another area of
advice is rehabilitation and turnaround management. In case of sick units, merchant bankers may
design a revival package in coordination with banks and financial institutions. Risk management
is another area where advice from a merchant banker is sought. He advises the client on different
hedging strategies and suggests the appropriate strategy.
Project Counseling:
Loan syndication- Merchant bankers arrange to tie up loans for their clients. This takes
place in a series of steps. Firstly they analyses the pattern of the clients cash flows, based on
which the terms of borrowings can be defined. Then the merchant banker prepares a detailed loan
memorandum, which is circulated to various banks and financial institutions and they are invited
to participate in the syndicate.
Non-resident Investment:The
Establishment of SUA:
In order to educate and protect the interest of investor , to provide information about new
issues of capital market, to evolve a code of conduct for underwriters & to render legal &
other services to members & public, the STOCKBROKER UNDERWRITER
ASSOCIATION(SUA) was esteblished in 1984.
The applicant should have necessary infrastructure like office space, equipment,
manpower etc.
The applicant must have at least two employees with prior experience in merchant
banking
Any associate company, group company, subsidiary or interconnected company of
the applicant should not have been a registered merchant banker
The applicant should not have been involved in any securities scam or proved
guilt for any offence
ACTIVITIES
NETWORTH
Category I
RS 1 Crore
advisor, consultant,
manager,
underwriter,
portfolio management.
Category II
Rs 50 lakh
Category III
Rs 20 lakh
Category IV
to an issue
To act only as advisor& consultant to an issue
Nil
Fee of 2.5 lakhs should be submitted to SEBI in Form A of the SEBI (Merchant Bankers)
Regulations, 1992. SEBI shall consider the application and on being satisfied renew
Certificate of registration for a further period of 3 years.
Note: Please find the List of all registered Merchant Bankers with SEBI at the end in
Appendix-1
Role in India
Merchant Banking:
The merchant banker are those financial intermediary involved with the activity of
transferring capital funds to those borrowers who are interested in borrowing. The
activities of the merchant banking in India are very vast in nature of which includes the
following
1. The management of the customers securities
Corporate restructuring:
Due to liberalization and globalization Companies are facing lot of competition. In order
to compete, they have to go for restructuring, merger, acquisitions or disinvestments.
They may offer good opportunities to merchant bankers
The scope could be extended to:1. Advising the company on designing of its Capital Structure.
2. Advising the company on the instrument to be offered to the public.
GROWTH
OF
Planning and industrial policy of the country i.e. India in this case
Prevailing Economic condition of the country.
Regulatory system of the market and economy prevailing in
India.
Confidence of the people, traders, buyers, marketers, business
houses, financial institutions etc.
The economic environment of the outside world.
Competition among the existing players and the upcoming
entrants.
Maximum :- 0.5%
Underwriting fees
MERCHANT BANKING
Deals with Equity & Equity related finance.
Management oriented.
Willing to accept risks.
MERCHANT BANKING
Purely fee-based.
SBI Merchant Banking Group is strongly positioned to offer perfect financial solutions to your
business. We specialize in the arrangement of various forms of Foreign Currency Credits for
Corporate.
State Bank of India is the nation's largest bank. Tracing its roots back some 200 years to the
British East India Company (and initially established as the Bank of Calcutta in 1806), the bank
operates more than 13,500 branches and over 5,000 ATMs within India, where it also owns
majority stakes in seven associate banks. State Bank of India has more than 50 offices in nearly
35 other countries, including multiple locations in the US (California), Canada, and Nigeria. The
bank has other units devoted to capital markets, fund management, factoring and commercial
services, and brokerage services. The Reserve Bank of India owns about 60% of State Bank of
India.
SBI being an Indian entity has no India exposure ceiling. Our Primary focus is On Indian Clients.
SBIs seasoned Team of professionals provides you with Insightful credit Information and helps
you Maximize the Value from the transaction.
OUR PRODUCTS AND SERVICES
Arranging External Commercial Borrowings (ECB)
We began operations in August 1986 as a wholly owned subsidiary of the State Bank of India,
which is the largest commercial bank in India. In January 1997, fresh equity shares were issued to
Asian Development Bank (ADB) and ADB now holds 13.84% stake in the equity of SBICAPS.
The distinguished parentage (with a 86.16% stake) together with the long standing association of
an internationally renowned financial institution like the Asian Development Bank further
enhances our image as a truly 'World Class Investment Bank'.
Our Mission - To provide Credible, Professional and Customer Focused world-class investment
banking services.
Our Vision - To be the best India based Investment Bank.
SBI Group:
No. 1 in Asia Pacific for Project Advisory. Rating by Thomson Project Finance
International.
No. 1 in IPOs, managed 700+ issues (since 1989 source Prime Database).
The only Indian Merchant Banker in the Global 10, Thomson Project Finance
International 2007.
Pioneer in Privatization.
Subsidiary:
State Bank of
Saurashtra
SBI (California)
State Bank of
Hyderabad
State Bank of
Travancore
SBI Funds
Management
(P) Ltd.
SBI
International
(Mauritius) Ltd.
State Bank of
Indore
SBI Capital
Markets Ltd.
Indo-Nigerian
Merchant Bank
State Bank of
Mysore
SBICI Bank
Ltd.
SBI Life
Insurance Co.
Ltd
Commercial
Bank of India
LLC
Committee of
Directors
Audit
Committee
Management Team
Shri O. P. Bhatt
(Chairman)
Shri R. Sridharan
(Chairman)
Shri D.
Sundaram
(Chairman)
Shri S. Vishvanathan
(MD & CEO )
Dr. R. H. Patil
Dr. R. H. Patil
Shri R.
Sridharan
Shri R. Sridharan
Shri S. Vishvanathan
(MD & CEO)
Dr R. H. Patil
Shri M. K. Nag
(Executive Vice
President)
Promoters Share: -
Performance:-
Awards: Asia Pacific Bank of the Year Award 2009 for Leadership in Project Finance by
Thomson Reuters (pfi)
India Loan House 2009 for Leadership in Loan Syndication by Thomson Reuters
(ifr Asia)
Asia Pacific Oil and Gas Deal of the Year 2009 for Cairn India by Thomson
Reuters (pfi)
African Power Deal of the Year 2009 for Morupule B by Thomson Reuters (pfi)
Indian Power Deal of the Year 2009 for Sasan by Euromoney
Indian Upstream Oil & Gas Deal of the Year 2009 for Cairn India by Euromoney
Indian Road Deal of the year 2009 for Yamuna expressway by Euromoney
Indian Telecom Deal of the Year 2009 for Aircel by Euromoney
SAFA Best Presented Accounts Award 2008
Award for Excellence in Financial Reporting
Employees:41,871
Employee growth: 37.2%
You see, ICICI Bank is India's #2 bank (after State Bank of India), with more than 600
branches and 2,200 ATMs nationwide. ICICI's retail banking group offers lending and
deposit services to small businesses and individuals. Larger businesses are served by the
corporate banking group, which offers finance services and treasury products. ICICI's
rural and government banking unit offers micro-loans and agricultural banking. Foreign
operations, as well as services related to international trade finance and expatriate
Indians, fall under the international banking group. Other ICICI offerings include online
banking, asset management, and insurance.
Key numbers for fiscal year ending March, 2008:
Sale: $5,796.3M
ICICI Securities Ltd is the largest equity house in the country providing end-to-end
solutions (including web-based services) through the largest non-banking distribution
channel so as to fulfil all the diverse needs of retail and corporate customers. ICICI
Securities (I-Sec) has a dominant position in its core segments of its operations Corporate Finance including Equity Capital Markets Advisory Services, Institutional
Equities, Retail and Financial Product Distribution.
ICICI Securities Inc., the step-down wholly owned US subsidiary of the company is a
member of the National Association of Securities Dealers, Inc. (NASD). As a result of
this membership, ICICI Securities Inc. can engage in permitted activities in the U.S.
securities markets. These activities include Dealing in Securities and Corporate Advisory
Services in the United States and providing research and investment advice to US
investors.
is a SEBI Registered CAT-1 Merchant banker. ICICI Securities Inc. is also registered
with the Financial Services Authority, UK (FSA) and the Monetary Authority of
Singapore (MAS).
Mr. A Murugappan
Mr. A Murugappan
Institutional
ICICI Securities is awarded as the Best Investment Bank 2008 by Global Finance
Magazine
The Corporate Finance group also was awarded a runner-up Best Merchant
Banker by Outlook Money in 2007.
ICICI Securities (I-Sec) topped the Prime Database League Tables 2007 for
money raised through IPOs/FPOs.
The equities team was adjudged the 'Best Indian Brokerage House-2003' by
Asiamoney.
Retail
ICICIdirect wins the prestigious Outlook Money - India's Best e-Brokerage House
for 2009.
ICICIdirect, the neighborhood financial superstore won the prestigious Franchise
India `Service Retailer of the Year 2008 award.
ICICIdirect wins the prestigious Outlook Money - India's Best e-Brokerage House
for 2008.
ICICIdirect been winning the prestigious Outlook Money - India's Best eBrokerage House for 2003-2004, 2004-2005, 2006-2007 and 2007-2008.
ICICIdirect has also won the CNBC AWAAZ Consumer Award for the Most
Preferred Brand of Financial Advisory Services.
Best Broker - Web 18 Genius of the Web Awards 2007
Franchisor of the year award 2009
Retail concept of the year awards 2009
Technology
IDG India's CIO magazine has recognized ICICI Securities as a recipient of 2009
CIO 100 award
Indian Bank's Association Business Technology Awards for Best Online Trading
Platform in 2006 and 2007
Punjab National Bank (PNB) is one of India's largest nationalized banks with some 4,500
branches or service counters. The financial institution offers services in personal and
corporate banking, including industrial, agricultural, and export finance, as well as
international banking. Its personal lending services include loans for housing, autos, and
education. PNB's diverse client list includes Indian conglomerates, small and mid-sized
businesses, non-resident Indians, and multinational companies. The bank was established
in Lahore in 1895 -- before the country was partitioned into India and Pakistan in 1947.
Key numbers for fiscal year ending 2008:
Sale: $2,315.0M
Net income: $322.1M
PNB's Financial Numbers
Employees 58,300
Bank of Baroda (BOB) was established on 20th July, 1908 in the princely state of Baroda
by the great visionary, Sir Sayajirao Gaekwad III. The founder strongly believed that, "a
bank of this nature would prove to be a beneficial agency for lending, transmission and
deposit of money and a powerful factor in the development of art, industries and
commerce of the state as also of adjoining territories". Unlike other state-owned bank,
BOB could maintain its unique identity and established a strong national presence even
before independence, to all corners of the country.
The Bank was led by eminent personalities and great bankers like Shri V.D. Thakersey,
Walchand Hirachand, R.D. Birla, N.M. Chokshi, M.G. Parikh and others.
BOB was amongst the first few banks to venture overseas by opening a branch at
Mombassa in 1953. Today it has significant international presence with a network of 72
offices in 25 countries.
Bank of Baroda has 100 years of glorious performance and an uninterrupted profit record,
serving generation after generation around the globe.
BOB Capital Markets Ltd. (BOBCAPS) is a wholly owned subsidiary of Bank of Baroda.
BOBCAPS is one of the Investment Banking Companies in India and is a SEBI registered
Category I Investment Banker. We are shortly commencing Broking/E-broking Business.
BOBCAPS offers the entire spectrum of financial services that includes Initial Public Offerings,
Private Placement of Debt, Corporate Restructuring, Business Valuation, Mergers & Acquisitions,
Project Appraisal and Loan Syndication. BOBCAPS also undertakes advisory services on
Securitisation and Structuring of Debts.
Singular Strengths
Strengths
Patronage of over 101 years old "Bank of Baroda" having more than 3000 branches
across India and 70 branches overseas.
Excellent rapport with the concerned regulatory authorities.
Good liaison with Banks and Financial Institutions.
Strong relationship with fellow Market Intermediaries.
Strong pool of clients consisting of Blue chip and mid cap companies.
Experienced & qualified professionals wholly devoted towards their key areas.
Board of Directors
SERVICES:
Investment Banking
IPO / Rights Issue / FPO
Mergers & Acquisition
Private Placement of Debt / Equity
Private Equity Advisory
Corporate Advisory Services
Project Appraisal / TEV Studies
Debt Syndication
Business Valuation
Retail Broking
Online Trading
Call n Trade
Applying IPOs Online
Applying MFs Online
Institutional Broking
Institutional Equity Broking Services
Equity Research
F & O Dealing and Sales
PERFORMANCE
Recent Offerings
Business Valuation
Valuation of shares
Union Bank of India has been around for more than 88 years. The bank
has earned a reputation for being techno-savvy--more than 600
branches of Bank are networked and powered with a centralized
technology platform, the bank also manages close to 395 networked
ATMs.
Union Bank is a Public Sector Unit with 55.43% Share Capital held by
the Government of India. The Bank came out with its Initial Public Offer
(IPO) in August 20, 2002 and Follow on Public Offer in February 2006.
Presently 44.57 % of Share Capital is presently held by Institutions,
Individuals and Others.
The Banks Net Worth increased by 25.76% and stood at Rs. 8758
st
crore as on 31 March 10 as compared to Rs.6964 crore in the
previous year.
st
Net Profit Increased by 27.47% and stood at 594 crore as on 31
March 10 as compared to
466 crore crore in the previous year.
st
Gross NPA level increased to Rs.2671 crore as on 31 March10
st
from Rs.1923 crore as on 31 March09.
Board of Directors
SHRI M.V.NAIR (Chairman & Managing Director)
Shri S.C.Kalia(Executive Director)
SHRI S.Raman(Executive Director)
Dr. Gulfam Mujibi(Part-time non-official Director)
Shri B.M.Sharma(Chartered Accountant Director)
Awards:
The Bank was awarded the Gold Trophy and a certificate in the
Elite Class for Excellence in Marketing & Brand Communication
by Association of Business Communicators of India (ABCI) in
March 2010. The award was given away by the Honble Governor
of Maharastra, Shri K.Sankaranarayan.
The Bank was awarded the prestigious Skoch Challenger Award
2009 for excellence in capacity building through innovative
concept of Village Knowledge Centre as part of financial
inclusion initiatives. The award was given away by Dr. C
Rangarajan, Economic advisor to the Prime Minister
As part of its global expansion initiatives, the Bank opened its
th
5 overseas representative office in London, U.K. in April 2010.
The Bank already has 4 representative Offices in Shanghai,
Beijing in PRC, Abu Dhabi in UAE and Sydney, Australia. Besides
the Bank has a full fledged overseas branch in Hong Kong. The
Bank is the process of setting up a Rep Office in Toronto, Canada.
Senior Management:
Kotak Securities
Kotak Securities Ltd. 100 % subsidiary of Kotak Mahindra Bank is one of the oldest and
largest broking firms in the Industry. A subsidiary of Kotak Mahindra bank.
Reconstruction from a private company to a public limited company effective from June
13, 2003. Act as a lead manager to several (IPOs) & help in Client in accessing the
public & private equity market.
It is also a depository participant with National Securities Depository Limited (NSDL)
and Central Depository Services Limited (CDSL).
Kotak Securities Limited has Rs. 2300 crore of Assets Under Management (AUM) as of
31st March, 2010.
Large Presence: At present Kotak in 331 cities with 843 offices all over the country.
Services :
Accolades :
UTI MF CNBC TV18 Financial Advisor Awards - Best Performing Equity Broker
(National) for the year 09
Finance Asia Award (2009)-Best Brokerage Firm In India
Best Brokerage Firm in India by Asiamoney in 2008, 2007 & 2006
Best Performing Equity Broker in India CNBC Financial Advisor Awards 2008
Avaya Customer Responsiveness Awards (2007 & 2006) in Financial Services Sector
The Leading Equity House in India in Thomson Extel Surveys Awards for the year 2007
Euromoney Award (2007 & 2006) - Best Provider of Portfolio Management: Equities
Euromoney Award (2005)-Best Equities House In India
Finance Asia Award (2005)-Best Broker In India
Finance Asia Award (2004)- India's best Equity House
Prime Ranking Award (2003-04)- Largest Distributor of IPO's
CANRA BANK is also one of the leading merchant bankers in India, offering specialize
services to banks, PSUs, and State owned corporation, Local statutory bodies, &
corporate sector.
It is SEBI register with CAT I Merchant banker to carry on issue management (public,
right, private placement), Underwriting Consoltancy, Corporate advisory services.
It have associated with issue ranging from 1 crore to 1500 crore, involving various types
of industries, banks , statutory Bodies etc. & have an edge in handling Private Placement
issue- Both Retail & HNIs.
SPECTROM of Services: Equity Issue (Public/ Right) management.
Debt Issue management.
Private Placement
Project appraisal
Monitoring agency assignments.
Agriculture Consultancy Services
Corporate Advisory Services
About
PROMOTERS/ACTIVITY
The Company, a Subsidiary of Canara Bank was incorporated and accredited as a
Primary Dealer (PD) in 1996 in the name of Gilt Securities Trading Corporation
Limited. (GSTCL) with a paid-up capital of Rs.100 Crores.
The Primary Dealer activity of the Company was taken over by the parent Bank in
February, 2007 and the Company is focusing on capital market related activities mainly
into equity broking and distribution of Financial Products.
The name of the Company has been changed as Canara Bank Securities Ltd. (CBSL)
in 2009.
The On Line Trading (OLT) in Equity and FNO is a product added by CBSL to Financial
Super Market of Canara Bank. This facilitates seamless trading in stock market by
investor clients of the Bank at their comfort and convenience.
PRINCIPAL OBJECTIVES
To provide a viable and efficient institutional platform for competitive trading in
equities.
To develop a Retail Equity market with broader investor base by offering
enhanced trading facility to the equity instruments and hassle-free & speedy
service using state of the art technology in the market.
To create an active secondary market for Equities, assure prompt settlement,
Liquidity to the instrument and transparency in dealing.
To provide Trading Convenience by way of: Efficient and Speedy On-Line Service
Prompt Settlement
Transparency in operation
ORGANIATIONAL SETUP
As per SEBI guidelines the Company has functional separation for.
Trading (Front Office)
Settlement accounting and Reconciliation(Back Office and Accounting)and
Monitoring and Control (Middle Office)
Similarly, there is a separation of transactions relating to Proprietary trads, Institutional
accounts and Constituents accounts.
The Company is Board managed. Day to day affairs are overseen by the Managing
Director, assisted by the executives heading the departments and supported by competent
and experienced staff, who are on deputation from Canara Bank.
BOARD OF DIRECTORS
Shri A C Mahajan - Chairman (Chairman and Managing Director of Canara Bank)
Shri H S Upendra Kamath - Vice Chairman (Executive Director of Canara Bank)
Shri P N Murthy - Director (General Manager of Canara Bank)
Shri D S Anandamurthy - Director (General Manager of Canara Bank)
Shri D S R Murthy - Director (Chartered Accountant-with vast experience in
Capital Market)
Shri K Krishna Rai - Director (Retd Executive Director of Allahabad Bank)
Shri K R Rao - Managing Director (Deputy General Manager of Canara Bank)
BANKERS TO THE COMPANY
Canara Bank
AUDITORS TO THE COMPANY
M/S Ghalla & Bhansali
IDBI Capital Market Services Ltd., (IDBI Capital) is a wholly owned subsidiary of
IDBI Bank Ltd and is a leading Investment Banking & Securities Company.
IDBI Capital offers a full suite of products and services to Corporates, Institutional
and Individual clients. The range of services include :
Investment Banking
Capital Market Products
Private Equity
Corporate Advisory Services
Mergers & Acquisitions
Project Appraisals & Debt Syndication
Stock Broking - Institutional & Retail
Distribution of Financial Products
Debt Placement and Underwriting
Fund Management (Managing Clients' Assets-Pension/PF Fund
Managers)
Research Group
IDBI Capital is highly regarded for safety and trust and enjoys a credit rating of
AAA by CARE for its medium-term borrowings and P1+ by ICRA for its shortterm borrowings.
Milestones
1995 March
1995 July
1996 October
1996
December
1996
1998 April
1999 February
1999
November
2002 March
2000 June
2002 October
2004 June
2006 January
2006
September
2006
September
2007 March
2007 May
2008 January
2008 March
Fund Management
IDBI Capital Market Services Ltd. (ICMS) is a leading Fund Manager in the country for
Provident, Pension and Retirement Benefit Funds. The Company is a SEBI registered
Portfolio Manager and manage its Clients assets under both discretionary and nondiscretionary mandates. These services are provided to various public and private sector
undertakings and their provident, pension, retirement benefit and surplus funds. The
Companys client base includes leading pension and provident funds in the country.
IDBI capital has been advising institutions, banks and corporates for their investment in
Debt, Mutual Funds and Equities over several years. Its services include managing Client
Assets--Pension & Provident Funds, Surplus fund Management, Equity Portfolio
Management and Mutual Fund Advisory.
The funds have continuously yielded superior returns, which are significantly higher
than the benchmark.
Keeping in view the importance of standardized processes and service levels, the
Company has gone in for ISO Certification for Fund Management, and is the only
company to have done so in this sector. Being a public sector, the Company is also
audited by Comptroller and Auditor General (CAG) office and follows transparent
practices.
Regulatory Approval
IDBI Capital is a registered Portfolio Manager with Securities and Exchange Board of
India (SEBI) since 1998 and is authorised to undertake Funds Management activities
(Debt & Equity) for clients. These activities would be governed by Securities and
Exchange Board of India (Portfolio Managers) Rules and Regulations, 1993. SEBI
Regisration No. of IDBI Capital is INP000000209, valid till the year 2010.
Online Investing
IPO Distribution
Capital Markets
IPO / FPO / Right Issues
TakeOver
Buyback of Securities
Qualified Institutional Placement
Private Equity
Investment Banking
Financial Advisory
Project Advisory
Corporate Advisory
Mergers & Acquistions
Strategic Advisory
Institutional Broking & Distribution
Equity Sales & Dealing
Equity Research
Mutual Fund Sales & Dealing
Mutual Fund Research
Furthermore, the ability to raise debt financing outside India (typically referred to as
External Commercial Borrowings (ECBs) is strictly regulated by RBI. No IPO boom for
Indian SMEs in Indian stock markets. The Indian stock markets including the BSE &
NSE have essentially ignored robust Indian SMEs. The avg. size of Indian IPO rose to
approximately $100 million in 2008-09. Meanwhile smaller Indian companies seeking to
raise funds of less than that amount have found it increasingly difficult to raise funds
through Indian Stock Markets listings.
According to SEBI only 104 companies raised capital in the range of $2.5 million to $125
million in March 2007 fiscal year. No companies have raised money in the $1.25 million
to $2.5 million range since April 2007. Finally, only 52 companies have been able to raise
funds in the range of $2.5 million to $125 million in March 2008 fiscal year. There are
few smaller Indian IPOs because Indian merchant bankers prefer to work on bigger IPOs
that earn them bigger, as the work required for a small IPO compared to a large IPO is
relatively the same. Also the regional stock exchanges, where the majority of SMEs
would list themselves if possible, face stiff competition from Indias two major stock
exchanges BSE & NSE.
Emissary Capital Ltd. Is a full service merchant banking firm which specializes in
assisting fast growing Indian companies in obtaining financing and U.S stock market
listings as well as identifying and advising on mergers & acquisitions transactions for
such companies.
LITERATURE REVIEW
terms. Dont sign anything until you are confident that you understand all the fees,
minimums, termination clauses, and other details. Its important to keep in mind that
merchant account providers wont go over every single point with every single customer,
and that it is ultimately your responsibility to read and understand the terms.
Financial services firm India Infoline on Wednesday said its wholly owned subsidiary,
India securities Pvt. Ltd, has received a category 1 merchant banking licence from the
Securities and Exchange Board of India.
This will enable the company to carry out the entire range of merchant banking activities
ranging from public issue management to advisory services and underwriting of issues a
company release said here.
Mr. Ajit Menon, Senior Vice President and Head-Investment Banking, India Infoline,
said the company would provide focused corporate finance advisory for SME`s in the
areas of mergers & acquisitions, pvt. equity placements, IPOs & high yield debt. We see
specific opportunities in cross border M&A that would bring in strategic benefits and
growth opportunities for companies in the SME sector and we are already seeing good
traction in this area
India Infoline expects a significant number of small and medium-sized companies to be
turning to the capital markets and becoming involved in mergers and acquisitions.
The leading investment banks are targeting the large companies and the small and
medium-sized companies bracket is a good untapped growth opportunity.
The company recently acquired Marchmont Capital Advisors Ltd and entered into an
alliance with Marchmont International for exclusive services and non-compete in India.
Objective &Methodology
RESEARCH METHODOLOGY
RESEARCH DESIGN:
For carrying out my research work I would follow Exploratory cum Descriptive
research design.
Sample Size
Sample size would be 7-8 public & private sector merchant banking companies.
Primary Data usually consists of the data that are collected afresh for the first
time and thus is original in character. Primary Data that used in the study
Questionnaire
In my Questionnaire There are 10 Questions
Newspapers
Websites
Books
Analysis Pattern
Statistical Tools- graphs & charts
Cross Tabulation Of Data
Take Financial
Service
Nos.
Percentage
Yes
36
45
No
44
55
Total
80
GRAPH
Interpretation
Out of total respondents, 45% respondents have taken Financial Service and rest 55%
respondents have not taken the Financial Service.
Know about
Merchant
Nos.
Percentage
Yes
32
40
No
48
60
Total
80
Interpretation
Out of total respondents, 40% respondents Know about merchant banking and rest 60%
respondents dont know about merchant banking.
Satisfied
Nos.
Percentage
Yes
35
43.75
No
45
56.25
Total
80
100
Interpretation
Out of total respondents, 43.75% respondents Satisfied and rest 60% respondents dont
Satisfied.
Bank
ICICI
SBI
PNB
BOI
Other
Percentage
20
35
20
15
10
Interpretation
Position
Good
Normal
Bad
Total
Percentage
50
35
15
100
Interpretation
Out of total respondents, 50% respondents Say Good, 35% Say Normal and rest 15%
respondents say bad.
Position
Good
Normal
Bad
Total
Percentage
40
55
5
100
Interpretation
Out of total respondents, 40% respondents Say Good, 55% Say Normal and rest 5%
respondents say bad.
Q7 What type of security have you deposited/you will deposit with the banks ?
Sr.No.
1.
2.
3.
4.
Type of Security
Bank Security (F.D.)
Gold
Land Papers
Third person security
Total:
Nos.
18
0
50
12
80
Percentage
22.5
0
62.5
15
100
50
45
40
35
30
25
bank sec.
gold
land paper
third person
20
15
10
5
0
bank sec.
gold
land paper
third person
Satisfaction by Security
Nos.
Percentage
1.
2.
Margin
Yes
No
Total:
64
16
80
80
20
100
70
60
50
40
Yes
No
30
20
10
0
Yes
No
Interpretation
Out of total respondents, 80% respondents Satisfied and rest 20% respondents dont
Satisfied.
Depends on M.B
Nos.
Percentage
Yes
56
70
No
24
30
Total
80
100
Depends on M.B
56
1 Yes
2 No
1 Yes
24
2 No
Nos.
Interpretation
Out of total respondents, 75% respondents Say that They are timely heared and rest 25%
say that They are not timely served by merchant banking.
Sr. No.
Difference
Nos.
Percentage
Yes
60
75
No
20
25
Total
80
100
100 Y
e
50 s
0 N
Yes
No
o
Interpretation
Out of total respondents,75% respondents Think that It is differ and rest 25%
respondents dont Think so.
COMPARISION BETWEEN
PUBLIC & PRIVATE
SECTORS
70%
60%
50%
40%
30%
20%
10%
0%
Series1
public sector
private sector
Conclusion
Multiple revenue growth initiatives are in place with detailed and concrete action
plans, and with rigorous follow-up mechanisms.
Growth is controlled by a sound Risk Management System and disciplined cost
management.
Small & Medium scale enterprises SMEs need immediate attention from
merchant bankers to get access to finance.
SMEs are facing stiff competition from large scale companies.
Study would be confined to only 7-8 public & private sector merchant banking
companies.
Sample size to be taken may not be the true representative of the population.
Chapter 6
BIBLIGRAPHY
i.
NOTES
ii.
iii.
iv.
INTERNET
www.google.com/news
www.answer.com
www.emissarycapital.com
www.wikipedia.com
www.sebi.gov.in
http://unionbankofindia.co.in
http://www.asialaw.com/Article/1988860/Merchant-Banking.html
http://www.icicisecurities.com
http://www.sbicaps.com
http://www.bobcapitalmarkets.com
http://www.pnbindia.in/subsidiaries
http://www.kotaksecurities.com
http://www.canmoney.in
Questionnaire
Respondents Profile
Name
:_______________
Age
:_______________
Gender
:_______________
Occupation :_______________
(b) NO
(b) No
( )
(b) No
(b) SBI
(c) PNB
(d) BOI
( )
(e) OTHER(specify)
5. What is the position of Merchant Banking in Private Sector?
(a) Good
(c) Bad
(b) Normal
( )
(c) Bad
(b) Normal
( )
7. What type of security have you deposited/you will deposit with the
banks
(a)Bank security
( )
(b) Gold
(b) No
( )
( )
(b) No
( )
(b) No
APPENDIX-1
List of All Merchant Bankers Registered with SEBI