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MASTER OF FINANCE CONTROL SESSION (2008-2010)
ANALYSIS OF MERCHANT BANKING IN INDIA
SUBMITTED TO:Department of commerce, Kurukshetra University Kurukshetra (Haryana)
Submitted by:Vinay Gulati Roll no. MFC,44
Sr.No. Chapter I Preface Guide Certificate Declaration Acknowledgement
Introduction (Conceptual Framework) Introduction Significance of the study Merchant Banking in India Focus of the Study Conceptualization
Objective &Methodology Objective of the study Research design Sample size & Technique Data collection (Primary & Secondary)
Data Presentation & Analysis
Implications & Conclusions
Introduction (Conceptual Framework)
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
MERCHANT BANKING HISTORY
the collected large amounts of money to finance trade across parts of the world.In late 17th and early 18th century Europe. This two-handed trade was time consuming and soon there arose a class of merchants. As the Lombardy merchants and bankers grew in stature on the back of the Lombard plains cereal crops many of the displaced Jews who had fled persecution after 613 entered the trade. are in fact the original "banks". the Dutch merchant adventurers were active in what are now Indonesia. the largest companies of the world was merchant adventurers. and set up their benches to trade in crops. providing the firm with official rights to lucrative trading activities in India. Merchant banks. For example. who were trading grain debt instead of grain. The Jewish newcomers. the French and Portuguese acted similarly in their respective colonies. on the other hand. They brought with them to the grain trade ancient practices that had grown to normalcy in the middle and far east. because of the firm's involvement in financing. negotiating. The American colonies also represent the product of merchant banking. as evidenced by the activities of the famous Hudson Bay Company. along the Silk Road. This company was the forerunner in developing the crown jewel of the English Empire. and implementing trade transactions. They then began to advance against the delivery of grain shipped to distant ports. They had one great advantage over the locals. could lend to farmers against crops in the field. along side the local traders. These were invented in the middle Ages by Italian grain merchants. for the finance of long distance goods trades. The English colony was started by what we would today call merchant bankers. In both cases they made their profit from the present discount against the future price. so they entered the great trading piazzas and halls of Lombardy. but did not bind the Jews. Christians were strictly forbidden the sin of usury. Supported by wealthy groups of people and a network of overseas trading posts. However. In this way they could secure the grain sale rights against the eventual harvest. the colonies and their progress stem from the business of merchant banks. The Jews could not hold land in Italy. One does not typically look at these countries' economic development as having been fueled by merchant bank adventurers. . according to today's accepted sense of the word. now so called. a high-risk loan at what would have been considered usurious rates by the Church. For example. The East India Trading Company secured a Royal Warrant from England. The colonies of other European countries were started in the same manner.
. The role of the merchant banker. the merchant banker also became involved in the actual negotiations between a buyer and seller in a transaction. as the term has evolved in Europe from the 18th century to today. Merchant banking services span from the earliest negotiations from a transaction to its actual consummation between buyer and seller. and shipping of goods. selling. In particular. was to arrange the necessary capital and ensure that the transaction would ultimately produce "collectable" profits.TRADATIONAL MERCHANT BANKING Merchant Banking. the merchant banker acted as a capital sources whose primary activity was directed towards a commodity trader/cargo owner who was involved in the buying. who had the expertise to understand a particular transaction. pertained to an individual or a banking house whose primary function was to facilitate the business process between a product and the financial requirements for its development. Often.
3) and most importantly. merchant banks actually own and run businesses for their own account. . therefore. reflects the early activities and breadth of services of the colonial trading companies. Today. Most companies that come to a U. immediate capital need.the actual sale of the product and the collection of profit. Today a merchant banker is who has the ability to merchandise -. in many ways. the term merchant banker has. Since the 18th century. These skills include those inherent in an entrepreneur. They became increasingly involved in the actual running of the business for which the transaction was conducted. a management advisor. 2) an ability to raise capital which might or might not be one's own (originally merchant bankers supplied their own capital and thereby took an equity interest in the transaction). create or expands a need -. however. its industry and operational management. merchant bank are looking to increase their financial stability or satisfy a particular. The modern European merchant bank. Some people might question whether or not there are many individuals or organizations that have the abilities to fulfill all three areas of expertise. effective skills in concluding a transaction . Professional merchant bankers must have: 1) an understanding of the product.and fulfill capital requirements. a commercial and/or investment banker plus that of a transaction broker. and that of others.S.that is. European merchant banks expanded their services.MODERN MERCHANT BANKING During the 20th century. been considerably broadened to include a composite of modern day skills.
-Because they are private. they are not regulated. -Because they do not invest against collateral.Who are merchant bankers ? -Merchant banks are private financial institution. do not take money from the public and are international in scope. they take far greater risks than traditional banks. Mergers & Acquisitions help and financial market speculation. -Their primary sources of income are PIPE (Private Investment In Public Entities) financings and international trade. -Their secondary income sources are consulting. . -Anyone considering dealing with any merchant bank should investigate the bank and its managers before seeking their help. Their advice tends to be more pragmatic than venture capitalists. -The reason that businesses should develop a working relationship with a merchant bank is that they have more money than venture capitalists.
They do PIPE (Private Investment in Public Equities) financings. They are essential advisors for companies seeking to become multinational corporations . they have a low cost strategy for taking your company public.Functions of Merchant Bankers: Consulting advice on going public and international business. Advice and help in taking your company public. If they are unwilling to supply Investment Banking bridge loans. They can advise or help with a company‟s M&A strategy.
SIGNIFICANCE OF THE STUDY It would help us to develop the ability to study the functioning of Merchant Banking in India & learn & apply multidisciplinary concepts. Based upon the comparison. They would help us to draw comparison between public & private sector companies engaged in Merchant Banking activities. . tools & techniques to solve vital problems. 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. It familiarizes with the various services provided by Merchant Bankers.
MERCHANT BANKING IN INDIA .
Grindlays Banks – 1967 Citi banks – 1970 SBI – 1973 ICICI . Banks (10). nationalized & foreign banks. following the footsteps of similar activities in UK & USA. 1450 with more than 930 registered with SEBI. private merchant banks engaged in stock broking. The SEBI authorized Merchant Bankers Include merchant Banking divisions of All India Financial Institutions.1974 Merchant banking in India .an overview Companies raise capital by issuing securities in the market. Currently Merchant Banking activity has mushroomed in the Indian capital market with both public & private sector settings up their respective merchant Banking divisions. Merchant banking… is the financial intermediation that matches the entities that need capital and those that have capital. subsidies of the commercial banks. Currently. of merchant bankers in India are approx.MERCHANT BANKING IN INDIA In India Merchant Banking activities started from the year 1967. Financial Institutions (6). underwriting activities & financial consultancy & investment advisory service firms. It is a function that facilitates the low of capital in the market. State Institutions (4) Private sector: . Merchant bankers act as intermediaries between the issuers of capital and the ultimate investors who purchase these securities. the total no. Merchant banker registered with SEBI: Public Sector: .International bankers (10). finance & investment (231) .Commercial banks (24).
the appropriate capital structure theory is also framed. The size of such a network represents the wholesale reach of the merchant banker. insurance products. preference shares and debentures or bonds by offering them to public. mutual fund products. fixed deposits. He advises the client on different hedging strategies and suggests the appropriate strategy. registration of the offer document.The following comprise the main functions of a merchant banker in India: Management of debt and equity offeringsThis forms the main function of the merchant banker. Underwriting of Public Issue: Underwriting is a guarantee given by the underwriter that in the event of under subscription. Banks/Merchant banking subsidiaries cannot underwrite more than 15% of any issue. equity shares. Financial structuring includes determining the right debt-equity ratio and gearing ratio for the client. allotment and refund. Issue Management: Management of issue involves marketing of corporate securities viz. private equity funds. Placement and distribution- The merchant banker helps in distributing various securities like equity shares. In case of sick units. Another area of advice is rehabilitation and turnaround management. pricing the issue. . commercial paper to name a few. After taking action as per SEBI guidelines. Merchant banks act as an intermediary whose main job is to transfer capital from those who own it to those who need it. Merchant bankers also explore the refinancing alternatives of the client. and evaluate cheaper sources of funds. merchant bankers may design a revival package in coordination with banks and financial institutions. Pricing of issues is done by the companies in consultant with the merchant bankers. registration of prospectus. debt instruments. the amount underwritten would be subscribed by him. He assists the companies in raising funds from the market. launching publicity campaign and fixing date of board meeting to approve and sign prospectus and pass the necessary resolutions. foreign institutional investors. The retail network depends on networking with investors. and marketing of the issue. The distribution network of the merchant banker can be classified as institutional and retail in nature. underwriting support. The institutional network consists of mutual funds. the merchant banker arranges a meeting with company representatives and advertising agents to finalize Arrangements relating to date of opening and closing of issue. listing on stock exchanges. pension funds. The main areas of work in this regard include: instrument designing. financial institutions etc. Risk management is another area where advice from a merchant banker is sought.
investment management.Merchant bankers help companies in obtaining venture capital financing for financing their new and innovative strategies. based on which the terms of borrowings can be defined. capital restructuring. Portfolio management refers to maintaining proper combinations of securities in a manner that they give maximum return with minimum risk. project counseling. This takes place in a series of steps. It also includes filling up of application forms with relevant information for obtaining funds from financial Institutions and obtaining government approval. (a) Long term foreign currency loans (b) Joint Ventures abroad (c) Financing exports and imports (d) Foreign collaboration arrangements Non-resident Investment:The services of merchant banker includes investment advisory services to NRI in terms of identification of investment opportunities.Merchant bankers arrange to tie up loans for their clients. Portfolio Management: Portfolio refers to investment in different kinds of securities such as shares. . Firstly they analyses the pattern of the client‟s cash flows. Then the merchant banker prepares a detailed loan memorandum. Providing venture capital and mezzanine financing. debentures or bonds issued by different companies and government securities. lease financing acceptance credit. Corporate Counseling and advisory services: Corporate counseling covers the entire field of merchant banking activities viz. Loan syndication. etc. public issue management. fixed deposit.Project Counseling: Project counseling includes preparation of project reports. Merchant bankers also offer customized solutions to their client‟s financial problems. Off Shore Finance: The merchant bankers help their clients in the following areas involving foreign currency. deciding upon the financing pattern to finance the cost of the project and appraising the project report with the financial institutions or banks. loan syndication. and operational services like purchase and sale of securities. working capital. which is circulated to various banks and financial institutions and they are invited to participate in the syndicate. selection of securities.
LKP merchant finacing ltd are some of the private sector firms of merchant bankers who have taken steps to reorganise their activities. 20th century finance corporation ltd.M finacial & investment consultancy ltd. 1986... Then CAN BANK finacial services ltd was set up as wholly owned subsidiary of canra bank in 1987. Many more subsidiaries are being set up by another nationalise banks. These subsidiaries offer more specialised services with proffecinal expertise & skills . Reorganisation of private Firms: Expecting tough Competition from growing number of merchant banking subsidiary of nationalised banks. the STOCKBROKER UNDERWRITER ASSOCIATION(SUA) was esteblished in 1984. private merchant bankers have also started reorganising their activities e. Establishment of SUA: In order to educate and protect the interest of investor . Was incorporated as the first such subsidiary of sbi on 2 july. SBI capital market ltd. J.Developments in Merchant banking Establishments In India Setting up of banks Subsidiaries: In order to meet the growing demand for broad-based finacial services from the corporate sector more effectively. PNB Capital Market was promoted by PNB during Mid 1988.g. to provide information about new issues of capital market. the merchant banking division of the nationalise banks have stated forming independent subsidiaries. .. to evolve a code of conduct for underwriters & to render legal & other services to members & public.
It help the investor in taking investment decisions. Equity. rs 16 crores bt finacial institions & 33 crores by public sector banks. banks & finacial institutions etc. Out of this rs 51 crores has been contributed by RBI. It would also have line of credit from public sector banks . The setting up of SHC is bound to affect the capital market ain future. underwriters. & Fixed return security offered to the public. merchant bankers. Credit Rating Information Services of India Ltd. refinance facility from the RBI in order to meet the working capital requirement. Stock-Holding Corporation of India Ltd. . CRISIL ratees various types of instruments such as debt. delivery of shares & collection of sale proceeds of the securities.DFHI aims at providing liquidity in money makket as it deals mainly in commercial bills. Discount & Finance House of India(DFHI) DFHI was incorporated as a company under the company act 1956 with an authorised & paid up capital of rs 100 crore.(CRISIL) CRISIL has been set up in 1987 to provide help to investors. (SHC) SHC was set up in 1986 by the all indian financial institutions to take care of safe custody. brokers.
co-manager. The applicant must have at least two employees with prior experience in merchant banking Any associate company. underwriter or consultant to an issue To act only as advisor& consultant to an issue Rs 50 lakh Rs 20 lakh Nil . consultant .Registration of merchant bankers in India Registration with SEBI is mandatory to carry out the business of merchant banking in India. consultant. portfolio management. manager. WHICH ARE AS FOLLOW:CATEGORIES Category I ACTIVITIES To carry on the activities of issue mgt & act as advisor. underwriter. equipment. NETWORTH RS 1 Crore Category II Category III Category IV To act as advisor. An applicant should comply with the following norms: The applicant should be a body corporate The applicant should not carry on any business other than those connected with the securities market The applicant should have necessary infrastructure like office space. portfolio management. 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 SEBI HAS DIVIDED MERCHANT BANKER‟S IN FOUR CATEGORIES. Underwriter. manpower etc. To act as advisor.
Bajaj Capital. Three months before the expiry period.. ICICI Bank Ltd. and DCM Financial Services Ltd etc. Barclays Security Indian Pvt. Deutsche Bank. Ltd. Citi Group Global Market Indian Pvt. Kotak Mahindra Capital Co... JM Financial Co. In Private Sector: ABN AMRO..Procedure for getting registration: An application should be submitted to SEBI in Form A of the SEBI (Merchant Bankers) Regulations. issues a Certificate of registration in Form B of the SEBI (Merchant Bankers) Regulations. Pvt. Ltd. Note: Please find the List of all registered Merchant Bankers with SEBI at the end in Appendix-1 .5 lakhs should be submitted to SEBI in Form A of the SEBI (Merchant Bankers) Regulations. Fedex Security Ltd. SEBI shall consider the application and on being satisfied renew Certificate of registration for a further period of 3 years. Validity period of certificate of registration is three years from the Date of issue. Ltd. Axis Bank Ltd. 1992. Foreign Players: Goldman SACH (India) Security Pvt.. Bank of Maharashtra. Yes bankLtd.. an application along with renewal Fee of 2. Registration fee payable to SEBI: Rs. SEBI shall consider the application and on being satisfied. Reliance Security Ltd. etc.. Bank of America. 1992. Ltd. 5 lakhs which should be paid within 15 days of date of receipt of intimation regarding Grant of certificate.. Tata capital market ltd.. PNB Capital Services Ltd.. 1992. Morgan Stanley Indian co.. Leading Merchant Bankers in India In Public Sector: SBI Capital Markets Ltd. Merchant Banking Divisions of IDBI & IFCI.
Role in India .
The management of the customers securities 2. which has more multinational player in the era of the financial services? This has resulted in to the emergence of the global investment in financial sector. 5. Govt. Competition arising out of Private Company participation is due to liberalization of the economy. The management of the portfolio 3. The management of projects and counseling as well as appraisal. 4. The circumvention of the syndication of loans. Now they have to bring something new which is efficient and best services to live in the competitive environment. The management of the interest and dividend etc. has now open up the doors of investment especially in the area of banks and insurance. 6. Factors responsible for changes: Globalization of Indian Economy has made the whole economy open. The activities of the merchant banking in India are very vast in nature of which includes the following 1.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 management of underwriting of shares and debentures. which leads to competitive environment for the present players. .
Now NSE and OTCEI are planned to raise their fund through debt instruments. the scope of merchant banking will be enhanced. The areas of great scope could be. So Merchant bankers are required to advice them for their investment in India. Entry of Foreign Investors: Now India capital market directly taps foreign capital through euro issues. In order to compete. acquisitions or disinvestments. greater financial sophistication and financial services are required. they require additional financial services. The increasing number of joint ventures also requires expert services of Merchant Bankers. insurance companies for life and property cover. They may offer good opportunities to merchant bankers . merger. so the merchant banker services will be needed by corporate enterprise to provide expert guidance. finance companies for consumer lending and mortgage finance. As new units have been set up and business is expanding. Development of debt markets: If the debt market is enhanced. there will be tremendous scope for Merchant bankers. and a range of specialized government or government sponsored institutions. A public equity or debt issue is the logical source of fund in this situation and merchant banks can tap this opportunity of growth. Changing policy of Financial Institutions: Now the lending policies of financial institutions are based on project orientation. Growth of Primary market: If the primary market grows and number of issues increases. there will be great demand for merchant banker services. agricultural banks for rural development. There is a well proven link between economic growth and financial technology.FDI is increased in capital market.Scope for growth of Merchant Banking in India As planning and industrial policy of the country envisaged the setting of up of new industries and technology. Economic development requires specialist financial skills: savings banks to marshal individual savings. Corporate restructuring: Due to liberalization and globalization Companies are facing lot of competition. If more and more NRIs participate in capital market. they have to go for restructuring.
marketers. 9. Advising the company on Legal/ regulatory matters and interaction with SEBI/ ROC/ Stock 5. THE FACTORS ON WHICH MERCHANT BANKING DEPENDS: GROWTH OF Planning and industrial policy of the country i. Advising the company on the instrument to be offered to the public. 7. Assisting the company in marketing the issue. Competition among the existing players and the upcoming entrants. underwriters. The economic environment of the outside world. traders. Confidence of the people. financial institutions etc. 2.The scope could be extended to:1. 4. In channelizing the financial surplus of the general public into productive investment avenues. 8. To coordinate the activities of various intermediaries to the share issue such as the registrar. 3. 6. Exchanges and other regulatory authorities. buyers. To ensure the compliance with rules and regulations governing the securities market. . India in this case Prevailing Economic condition of the country. Pricing of the instrument. business houses. Regulatory system of the market and economy prevailing in India. Bankers. advertising agency. Advising the company on designing of its Capital Structure. printers. brokers etc.e.
Indian economy provides an amicable environment for these firms to set up.Printing .5% up to Rs. Merchant Banker’s Commission: Maximum :.0.2% more in excess of Rs.1. Non co-operation of issuing companies: Non co-operation of the issuing companies in timely allotment of securities and refund of application money is another problem faced by merchant bankers. Minimum net worth of Rs.Problems of Merchant Banking: Restriction of merchant banking activities: SEBI guidelines have authorized merchant bankers to undertake issue related activities and made them restrict their activities or think of separating these activities from present one and float new subsidiary and enlarge the scope of its activities.Advertising .5% Other expenses :. merchant banking in India has vast scope to develop because of lot of domestic as well as foreign businesses booming here.Registrar‟s expenses . .0.Stamp duty In spite of problems popping up.5% Project appraisal fees Lead Manager :.25 crores Underwriting fees Brokerage commission :.25 crores .0. flourish and expand here.1 crore: SEBI guidelines stipulate that a minimum net worth of Rs.1 crore for authorization of merchant bankers.
MERCHANT BANKING Deals with Equity & Equity related finance. Commit their own funds.Difference Between Commercial Banking & Merchant Banking: COMMERCIAL BANKING Deals with Debt & Debt related finance. Asset oriented. . Impossible to stay aloof from international trends. Willing to accept risks. Generally avoid risks. Management oriented. MERCHANT BANKING Purely fee-based. Difference Between Investment Banking & Merchant Banking: INVESTMENT BANKING Both fee-based and fund-based.
BRIEF ANALYSIS OF SOME MERCHANT BANKS OF INDIA
SBI Bank of India ICICI Bank Ltd. Punjab National Bank Bank of Baroda Union Bank of India Kotak Mahindra Canara Bank IDBI BANK
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. SBI‟s 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) Arranging and participating in international loan syndication Loans backed by Export Credit Agencies Foreign currency loans under the FCNR (B) scheme Import Finance for Indian corporate
SBI CAPITAL MARKETS LIMITED (SBICAPS) is India's leading investment bank and project advisor, assisting domestic company‟s fund-mobilization efforts for last many years.
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: The largest commercial bank group in India Position in the domestic banking sector as on 31 March 2008: 15.44% of the aggregate deposits. 15.28 % of total advances. The only Indian Bank to find a place in the Fortune Global 500 List. First Indian Bank to take up merchant banking in 1986.
SBI Capital Markets Limited: No. 1 in Asia – Pacific for Project Advisory. Rating by Thomson Project Finance International. No. 1 in IPO‟s, 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: SBICAPS Ventures Ltd. SBICAP Securities Ltd. SBICAPS (UK) Ltd. SBICAP Trustee Company Ltd.
Associates Bank:State Bank of Bikaner & Jaipur State Bank of Hyderabad State Bank of Saurashtra SBI Factors & Comm. Services Ltd. SBI (California) Commercial Bank of India LLC
State Bank of Travancore
SBI Funds SBI Management (P) International Ltd. (Mauritius) Ltd. SBI DFHI Ltd. Indo-Nigerian Merchant Bank Nepal SBI Bank Limited
State Bank of Indore State Bank of Mysore
SBI Capital Markets Ltd. SBICI Bank Ltd.
SBI Life Insurance Co. Ltd
Key Personnel:Board of Directors Committee of Directors
Shri R. Sridharan (Chairman) Dr. R. H. Patil
Shri D. Sundaram (Chairman) Shri R. Sridharan
Shri O. P. Bhatt (Chairman) Dr. R. H. Patil
Shri S. Vishvanathan (MD & CEO ) Shri M. K. Nag (Executive Vice President)
Shri R. Sridharan Shri Bansi S. Mehta Smt. Bharati Rao Shri D. Sundaram Shri Ajay Sagar Dr. Swati A. Piramal Shri S. Vishvanathan (MD & CEO)
Shri S. Vishvanathan (MD & CEO)
Dr R. H. Patil
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 .
pre-IPO convertibles.SERVICE’S: Project Advisory & Structured Finance SBICAP has built a formidable presence in the area of Project Finance Advisory and Funds Syndication with several prestigious mandates in almost every sector of the industry to its credit. and equity offerings completed as a private placement. Private placement of bonds Capital restructuring advisory services Advisory and arrangement services for products such as AIM Listing. Our product portfolio includes: Project Appraisal Structured Finance and Syndication Infrastructure Project Advisory Securitisation Debt & Equity Syndication Capital Markets Capital Markets Group handles transactions in the capital markets space across multiple instrument structures. Our product and solutions bouquet includes: Managing Initial Public Offerings and Follow-on Public offerings and Offers-forSale Managing Rights Offering. Buyback and Delisting of securities Offerings of convertible securities Public offering of Corporate structured bonds Arranging Private Equity to include growth capital. mezzanine debt and equity. be it the traditional or the structured formats Qualified Institutional Placements Open offers. private investments in public equity (PIPES). ADR/GDR and other off-shore equity or bond listing options M&A and Advisory The M & A product portfolio includes: Mergers & Acquisitions Private Equity Foreign Currency Convertible Bonds (FCCB) Corporate Advisory . Indian Depository Receipts.
2008: Sale: $5. ICICI's retail banking group offers lending and deposit services to small businesses and individuals. and insurance.200 ATMs nationwide.1% Net income: $524.871 Employee growth: 37.1M Income growth: 167.4% ICICI Advice on Wide Varity of Product: Private Equity Financing Secondary sale transactions pre IPO deals . Larger businesses are served by the corporate banking group. asset management.3M One year growth: 99. ICICI's rural and government banking unit offers micro-loans and agricultural banking. Other ICICI offerings include online banking. fall under the international banking group. Key numbers for fiscal year ending March. as well as services related to international trade finance and expatriate Indians.Employees:41. which offers finance services and treasury products. Foreign operations.2% You see. with more than 600 branches and 2.796. ICICI Bank is India's #2 bank (after State Bank of India).
securities markets. Pravir Vohra Mr. UK (FSA) and the Monetary Authority of Singapore (MAS). ICICI Securities Inc. Anup Bagchi. Anup Bagchi... Ms. Institutional Equities. (Executive Director) Mr. Sonjoy Chatterjee Ms. As a result of this membership. Murugappan. A. (Chairperson) ICICI Securities Holding Inc. A Murugappan Mr. Mr. Retail and Financial Product Distribution. Ms. is also registered with the Financial Services Authority.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. Chanda Kochhar.S. can engage in permitted activities in the U. ICICI Securities Inc. Charanjit Attra Mr. Uday Chitale Mr. (Managing Director & CEO) Mr. Gopakumar P. (NASD). Madhabi Puri-Buch. Inc. (Executive Director) . Board of Directors:ICICI Securities Limited. is a SEBI Registered CAT-1 Merchant banker. A Murugappan Mr. Anup Bagchi. (Chairman) Mr. Subir Saha Mr. ICICI Securities Inc. Subir Saha Mr. Inc. (Chairman) Mr. Ketan Patel Mr. Narendra Murkumbi Mr. the step-down wholly owned US subsidiary of the company is a member of the National Association of Securities Dealers. (President) ICICI Securities. These activities include Dealing in Securities and Corporate Advisory Services in the United States and providing research and investment advice to US investors. Charanjit Attra Mr. ICICI Securities (I-Sec) has a dominant position in its core segments of its operations Corporate Finance including Equity Capital Markets Advisory Services.
Best Broker . ICICIdirect been winning the prestigious Outlook Money . Retail ICICIdirect wins the prestigious Outlook Money . ICICIdirect has also won the CNBC AWAAZ Consumer Award for the Most Preferred Brand of Financial Advisory Services. 2004-2005. ICICI Securities (I-Sec) topped the Prime Database League Tables 2007 for money raised through IPOs/FPOs. 2006-2007 and 2007-2008.Awards & Recognition 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. ICICIdirect wins the prestigious Outlook Money . ICICIdirect.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 .India's Best e-Brokerage House for 2009.India's Best e-Brokerage House for 2008. the neighborhood financial superstore won the prestigious Franchise India `Service Retailer of the Year 2008 award.India's Best eBrokerage House for 2003-2004. The equities team was adjudged the 'Best Indian Brokerage House-2003' by Asiamoney.
500 branches or service counters. and multinational companies.300 . and export finance.12 bil Market Value $2. agricultural. PNB's diverse client list includes Indian conglomerates.32 bil Profits $.79 bil Employees 58. Its personal lending services include loans for housing.28 bil Assets $24. small and mid-sized businesses.1M PNB's Financial Numbers Sales $2. as well as international banking. including industrial.0M Net income: $322.315. autos. and education.before the country was partitioned into India and Pakistan in 1947. non-resident Indians. Key numbers for fiscal year ending 2008: Sale: $2. The bank was established in Lahore in 1895 -.Punjab National Bank (PNB) is one of India's largest nationalized banks with some 4. The financial institution offers services in personal and corporate banking.
BOB was amongst the first few banks to venture overseas by opening a branch at Mombassa in 1953. M. "a bank of this nature would prove to be a beneficial agency for lending. industries and commerce of the state as also of adjoining territories". The founder strongly believed that. Thakersey.D. BOB could maintain its unique identity and established a strong national presence even before independence. transmission and deposit of money and a powerful factor in the development of art. 1908 in the princely state of Baroda by the great visionary. Bank of Baroda has 100 years of glorious performance and an uninterrupted profit record.M. serving generation after generation around the globe. R. N.Bank of Baroda (BOB) was established on 20th July. to all corners of the country.G. The Bank was led by eminent personalities and great bankers like Shri V. Birla. Unlike other state-owned bank. Walchand Hirachand. Today it has significant international presence with a network of 72 offices in 25 countries. Sir Sayajirao Gaekwad III. Parikh and others. Chokshi.D. .
Ravi Kumar . S.S. Project Appraisal and Loan Syndication.H. Mergers & Acquisitions.Independent Director Mr. (BOBCAPS) is a wholly owned subsidiary of Bank of Baroda. Board of Directors Mr. BOBCAPS is one of the Investment Banking Companies in India and is a SEBI registered Category I Investment Banker.Whole Time Director Mr.Whole Time Director . N. Swaminathan .Managing Director Mr. J. Strong pool of clients consisting of Blue chip and mid cap companies.BOB Capital Markets Ltd. Excellent rapport with the concerned regulatory authorities. Singular Strengths Patronage of Bank of Baroda Excellent association with Banks and Financial Institutions Good relationship with fellow market intermediaries Large client base consisting of blue chip and midcap companies Good rapport with regulatory authorities Strengths Patronage of over 101 years old "Bank of Baroda" having more than 3000 branches across India and 70 branches overseas. Business Valuation.Ramani . Joshi . P. Good liaison with Banks and Financial Institutions. We are shortly commencing Broking/E-broking Business.Nominee Director Mr. Raj Kumar Aggarwal . Experienced & qualified professionals wholly devoted towards their key areas. Private Placement of Debt. Arora . Strong relationship with fellow Market Intermediaries. Akshay M. Corporate Restructuring.Independent Director Mr. BOBCAPS also undertakes advisory services on Securitisation and Structuring of Debts. BOBCAPS offers the entire spectrum of financial services that includes Initial Public Offerings.
. Fidelity. (BOBCAPS). and Franklin Templeton.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 Mutual Fund Distribution BOB Capital Markets Ltd. UTI. a wholly owned subsidiary of Bank of Baroda is into Mutual Fund Distribution and Advisory Services. Reliance. HDFC. As a distributor we are empanelled with 28 SEBI Registered Mutual Funds in India including SBI.
Equity Lead Manager to the Initial Public Offering of Issue Size INR 750 Million Lead Manager to the Lead Manager to the Rights Issue Size INR 180 Million Capital Issues .Debt Arranged Issue of NCDs on Private Placement Basis worth INR 3250 Million Arranged Issue of NCDs on Private Placement basis worth INR 500 Million Arranged the Issue of various Bond series for Tier I and Tier II capital requirements aggregating INR 20 Billion from 20072009 Mergers & Acquisitions Advisor to the Takeover Deal. .Recent Offerings Business Valuation Business Valuation for a crossover M&A Deal Project Appraisal and Valuation Valuation of shares Capital Issues .
Union Bank of India has been around for more than 88 years.6964 crore in the previous year.Raman(Executive Director) Dr. st st Net Profit Increased by 27. the bank also manages close to 395 networked ATMs.C.76% and stood at Rs.2671 crore as on 31 March’10 from Rs. st st Board of Directors SHRI M. Union Bank is a Public Sector Unit with 55.43% Share Capital held by the Government of India. Presently 44.Kalia(Executive Director) SHRI S. SHANKAR (WORKMEN DIRECTOR) .47% and stood at 594 crore as on 31 March 10 as compared to 466 crore crore in the previous year. Gross NPA level increased to Rs.M. The Bank came out with its Initial Public Offer (IPO) in August 20. Financial performance(as on 31st march 10) The Bank’s Net Worth increased by 25. 8758 crore as on 31 March 10 as compared to Rs. 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. Gulfam Mujibi(Part-time non-official Director) Shri B.NAIR (Chairman & Managing Director) Shri S. 2002 and Follow on Public Offer in February 2006.Sharma(Chartered Accountant Director) SHRI N.1923 crore as on 31 March’09. Individuals and Others.57 % of Share Capital is presently held by Institutions.V.
E-Tax. The Bank is the process of setting up a Rep Office in Toronto. th . C Rangarajan.Sankaranarayan. Shri K. Payments) Corporate Banking(CMS.Insurance & Investment.Retail Loans. Besides the Bank has a full fledged overseas branch in Hong Kong. Savings & Deposits. Abu Dhabi in UAE and Sydney. 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.Demat) NRI Banking(Remittance. The award was given away by Dr. the Bank opened its 5 overseas representative office in London. Canada.Cards. U.Products and Services Personal Banking (Accounts & Deposits. Economic advisor to the Prime Minister As part of its global expansion initiatives. Insurance. Financial & Non Financial enquiries) Award’s: 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. in April 2010. The Bank already has 4 representative Offices in Shanghai. Loan & Services. Australia. loans Syndication. Trade Finance.Transfer of Funds/Bills/Limits/Currency. The award was given away by the Hon’ble Governor of Maharastra.K. Beijing in PRC. MSME Banking) Internet Banking(Account Information.
franchisees. C Jayaram (Executive Director) Mr. to life insurance. The Group services around 6. C. to stock broking. Mauritius and Singapore. Kotak Group Products & Services: Senior Management: Mr. 7.100 crore and has a distribution network of branches. Shivaji Dam (managing director of Kotak Mahindra Old Mutual Life Insurance Limited) Mr. to investment banking. Dubai. San Francisco. to mutual funds. Uday S. Cyril Shroff (managing partner of the law firm) . Dipak Gupta ( Executive Director) Mr. it has been a steady and confident journey leading to growth and success. offering complete financial solutions that encompass every sphere of life. Shankar Acharya (Non-Executive Part-time Chairman) Mr. the group caters to the financial needs of individuals and corporates. Since the inception of the erstwhile Kotak Mahindra Finance Limited in 1985. Anand Mahindra (Vice-Chairman and Managing Director) Mr. London. The group has a net worth of over Rs. Dipak Gupta (Executive Director) Dr. representative offices and satellite offices across cities and towns in India and offices in New York. Jayaram ( Executive Director) Mr. From commercial banking.The Kotak Mahindra Group Kotak Mahindra is one of India's leading financial conglomerates. Kotak (Executive Vice Chairman & Managing Director) Mr.5 million customer accounts.
Kotak Securities Kotak Securities Ltd. Insurance. 2010. Accolades : UTI MF – CNBC TV18 Financial Advisor Awards . 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) . Kotak Securities Limited has Rs. Services : stock broking through the branch and Internet. Investments in IPO.India's best Equity House Prime Ranking Award (2003-04). 100 % subsidiary of Kotak Mahindra Bank is one of the oldest and largest broking firms in the Industry. 2300 crore of Assets Under Management (AUM) as of 31st March.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). Large Presence: At present Kotak in 331 cities with 843 offices all over the country. Reconstruction from a private company to a public limited company effective from June 13. Mutual funds Portfolio management service. 2003. Act as a lead manager to several (IPO‟s) & help in Client in accessing the public & private equity market. Currency Derivatives.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. A subsidiary of Kotak Mahindra bank.Largest Distributor of IPO's . It is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL).
and State owned corporation. Debt Issue management. right. Private Placement Project appraisal Monitoring agency assignments. It is SEBI register with CAT I Merchant banker to carry on issue management (public. . SPECTROM of Services: Equity Issue (Public/ Right) management. It have associated with issue ranging from 1 crore to 1500 crore. IPO funding Security Trustee Services. Local statutory bodies. private placement).Both Retail & HNIs. & corporate sector. PSUs. Underwriting Consoltancy. Corporate advisory services. statutory Bodies etc. involving various types of industries.CANRA BANK is also one of the leading merchant bankers in India. Agriculture Consultancy Services Corporate Advisory Services Merger & Acquisition Share valuation & Buy back Assignment. & have an edge in handling Private Placement issue. banks . offering specialize services to banks.
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. The Primary Dealer activity of the Company was taken over by the parent Bank in February. The On Line Trading (OLT) in Equity and FNO is a product added by CBSL to Financial Super Market of Canara Bank. 2007 and the Company is focusing on capital market related activities mainly into equity broking and distribution of Financial Products. assure prompt settlement. 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. The name of the Company has been changed as „Canara Bank Securities Ltd. To create an active secondary market for Equities. To provide Trading Convenience by way of: Efficient and Speedy On-Line Service Prompt Settlement Transparency in operation . (CBSL)‟ in 2009. Liquidity to the instrument and transparency in dealing. 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.100 Crores. (GSTCL)‟ with a paid-up capital of Rs.About PROMOTERS/ACTIVITY The Company.
who are on deputation from Canara Bank.Vice Chairman (Executive Director of Canara Bank) Shri P N Murthy .Chairman (Chairman and Managing Director of Canara Bank) Shri H S Upendra Kamath .Director (Retd Executive Director of Allahabad Bank) Shri K R Rao . Day to day affairs are overseen by the Managing Director. Trading (Front Office) Settlement accounting and Reconciliation(Back Office and Accounting)and Monitoring and Control (Middle Office) Similarly.Director (General Manager of Canara Bank) Shri D S Anandamurthy .Managing Director (Deputy General Manager of Canara Bank) BANKERS TO THE COMPANY Canara Bank AUDITORS TO THE COMPANY M/S Ghalla & Bhansali M/s A J Shah & Co. there is a separation of transactions relating to Proprietary trads. Institutional accounts and Constituents‟ accounts. BOARD OF DIRECTORS Shri A C Mahajan . assisted by the executives heading the departments and supported by competent and experienced staff.Director (Chartered Accountant-with vast experience in Capital Market) Shri K Krishna Rai .ORGANIATIONAL SETUP As per SEBI guidelines the Company has functional separation for. Mumbai (Internal Auditors) PRINCIPAL EXECUTIVES Shri K R Rao (Managing Director ) Shri N S Rao (General Manager ) Shri K Ganesh Kamath (General Manager ) COMPANY SECRETARY Shri S Mutthu . The Company is Board managed.Director (General Manager of Canara Bank) Shri D S R Murthy .
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.IDBI Capital Market Services Ltd. Institutional and Individual clients. . IDBI Capital offers a full suite of products and services to Corporates. (IDBI Capital) is a wholly owned subsidiary of IDBI Bank Ltd and is a leading Investment Banking & Securities Company.
IDBI Capital ties up with Oriental Bank of Commerce IDBI Capital ties up with Karur Vysya Bank (KVB) IDBI Capital bags CNBC TV18's prestigious National Financial Advisor Award IDBI Capital ties up with Union Bank of India 2006 September 2006 September 2007 March 2007 May 2008 January 2008 March . Mumbai Started operations as a Primary Dealer Achieved an outright secondary market turnover exceeding Rs.100000 crore in G-Secs Acquired Derivatives memberships of BSE and NSE Commenced trading in Interest Rate Swaps Commenced Merchant Banking & Corporate Advisory Services Launched the online investing portal – www. IDBI Capital ties up with Punjab National Bank and Bank of Rajasthan Bank.idbipaisabuilder.in IDBI Capital bags CNBC TV18 'Best National Financial Advisor-Institutional' award.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 Commenced Equity Broking on NSE CM segment Built agent Distribution Network across the country Commenced Debt Broking on NSE WDM segment Started operations as a Depository Participant Started to act as Arranger to Privately Placed Bond issues Commenced operations as a Portfolio Manager Acquired membership of BSE.
Equity Portfolio Management and Mutual Fund Advisory. of IDBI Capital is INP000000209. . The Company’s client base includes leading pension and provident funds in the country. Its services include managing Client Assets--Pension & Provident Funds. the Company is also audited by Comptroller and Auditor General (CAG) office and follows transparent practices. Pension and Retirement Benefit Funds. Fund Management IDBI Capital Market Services Ltd. These services are provided to various public and private sector undertakings and their provident. and is the only company to have done so in this sector. 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. IDBI capital has been advising institutions. valid till the year 2010. pension. ISO Certification 9001:2000 Keeping in view the importance of standardized processes and service levels. 1993. the Company has gone in for ISO Certification for Fund Management. which are significantly higher than the benchmark. (ICMS) is a leading Fund Manager in the country for Provident. The funds have continuously yielded superior returns. banks and corporates for their investment in Debt. The Company is a SEBI registered Portfolio Manager and manage its Client’s assets under both discretionary and nondiscretionary mandates. Mutual Funds and Equities over several years. SEBI Regisration No. These activities would be governed by Securities and Exchange Board of India (Portfolio Managers) Rules and Regulations. Surplus fund Management. Being a public sector. retirement benefit and surplus funds.
Service’s: Retail Broking & Distribution 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 .
25 million to $2.S public company with market listing.Present scenario of Indian Merchant Banking U. SMEs are dynamic force in India fall under this category. This turns a fast growing Indian company into U.5 million range since April 2007. size of Indian IPO rose to approximately $100 million in 2008-09. No companies have raised money in the $1. only 52 companies have been able to . that is rapidly India a leading global manufacturing hub. Debt Financing is not the answer for SME`s.75% to 13. driven by approximately three million SME`s in sectors ranging from auto components to industrial goods. For vast majority of Indian SME`s. There seems to an across the board consensus that Indian SME`s have not been able to fully tap their potential and keep pace with India‟s growth because of their inability to access greater sources of financing. Finally.S and European investors in conjunction with a U. The avg. the high domestic interest rate regime (prime rate of 12. is a pioneer firm leading the charge for Indian Companies to obtain stock market listings in the U.S and European institutional investors. No IPO boom for Indian SMEs in Indian stock markets. the ability to raise debt financing outside India (typically referred to as External Commercial Borrowings (ECBs) is strictly regulated by RBI. The Indian stock markets including the BSE & NSE have essentially ignored robust Indian SMEs.5 million to $125 million in March 2007 fiscal year. Feb 17 08 /PR Newswire/ Emissary Capital. LLC A merchant bank based in New York City and specializing in Indian Companies. India‟s strength in Information Technology sector is well known.Growing Indian Companies: An innovative financing Option New York. Furthermore. Focus on small and medium enterprises (SMEs).S public company with the prestige and capability to raise money from U.S Stock Market Listings of Fast.25%) continues to be a substantial hindrance. According to SEBI only 104 companies raised capital in the range of $2. but it is India‟s fast growing manufacturing sector. 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.
There are few smaller Indian IPOs because Indian merchant bankers prefer to work on bigger IPOs that earn them bigger. Emissary Capital Ltd. as the work required for a small IPO compared to a large IPO is relatively the same.5 million to $125 million in March 2008 fiscal year. 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.raise funds in the range of $2. where the majority of SMEs would list themselves if possible. Also the regional stock exchanges. . face stiff competition from India‟s two major stock exchanges BSE & NSE.
After comparison it would be find out which category has more growth potential in present scenario as well as in future. The study would have information and details of Merchant Banking of public sector and private sector companies and then an analysis will be done on the collected information and finally a comparison between these two categories will be done. .FOCUS OF THE STUDY The main focus of the study would be on functioning of the Merchant Banking companies.
New players are entering in this field day by day. They try to identify the needs of the investors & corporate sector & advice entrepreneurs what to do to be successful. So many companies in India are trying their hands in this field. Some companies have built their strong image and some are still in process to leave their mark in the international market. Merchant Banking in India has a great demand over the globe. Merchant banking is a service-oriented function that transfers capital from those who own to those who can use it.CONCEPTUALIZATION OF THE STUDY Amidst the swift changes sweeping the financial world. . Merchant Banking has emerged as an indispensable financial advisory package.
LITERATURE REVIEW .
First of all. to engage in merchant banking activities. and then compare the variable fees that may differ depending on the company you deal with. and may be negotiable based on your unique circumstances. The Gramm-Leach-Bliley Act allows financial holding companies. a type of Bank Holding Company created by the act. A banque d'affaire is a French merchant bank. mail order outlet. Okay so you want to accept credit cards from your customers. where the bank assumes market risk but no long-term credit risk. of study Have Been done on mercent Banking. and are interested in establishing a merchant account. but does not hold the loans in its investment portfolio to maturity. Once you have determined what your business will be charged for its merchant account. merchant banking is gaining acceptance in the United States. A common form of banking in Europe. Whether you own a brick-and-mortar retail store. A merchant bank invests its own capital in leveraged buyouts.REVIEW OF EXISTING LITERATURE There are no. and average month. as more banks originate commercial loans and then sell them to investors rather than hold the loans as portfolio investments. which has more powers than its British counterpart. cancellation. it‟s often a good idea to do a few sample calculations to work out your total credit card processing costs during a good. and monthly minimum. and other structured finance transactions. corporate acquisitions. A Few of literature are Form of banking where the bank arranges credit financing. bad. These fees include things like set-up. or internet shopping operation. you should make a list of several providers that offer the features you want. there are a few things to consider when choosing a credit card processing provider. Merchant banking is a fee based business. .
India securities Pvt. Don‟t sign anything until you are confident that you understand all the fees. termination clauses. It‟s important to keep in mind that merchant account providers won‟t go over every single point with every single customer. India Infoline. and other details. has received a category 1 merchant banking licence from the Securities and Exchange Board of India. The company recently acquired Marchmont Capital Advisors Ltd and entered into an alliance with Marchmont International for exclusive services and non-compete in 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. pvt. Ajit Menon. Ltd. equity placements. . The leading investment banks are targeting the large companies and the small and medium-sized companies bracket is a good untapped growth opportunity. IPO‟s & high yield debt. Financial services firm India Infoline on Wednesday said its wholly owned subsidiary. minimums. and that it is ultimately your responsibility to read and understand the terms. you should read and double-check the contract. said the company would provide focused corporate finance advisory for SME`s in the areas of mergers & acquisitions. Senior Vice –President and Head-Investment Banking. Mr.Finally. “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. including small print and detailed terms.
Objective &Methodology .
To find out the growth potential of the Merchant Banking public & private sector companies. . To compare the public & private sector company engaged in providing merchant banking services on various grounds. To familiarize with the various services provided by Merchant Bankers. tools & techniques to solve vital problems.OBJECTIVES OF THE STUDY To develop the ability to study the functioning of Merchant Banking in India & learn & apply multidisciplinary concepts.
Here in this study universe and survey population sampling would be all the public & private sector companies of India engaged in Merchant Banking operations. Sample Size Sample size would be 7-8 public & private sector merchant banking companies. .RESEARCH METHODOLOGY RESEARCH DESIGN: A research design is an arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy ion procedure. Universe and Survey Population Sampling All the items under consideration in any field of inquiry constitute a “universe” or “population”. For carrying out my research work I would follow Exploratory cum Descriptive research design. A sample design is a definite plan for obtaining a sample from a given population.
Primary Data that used in the study Questionnaire In my Questionnaire There are 10 Questions Secondary Data consists of data that is collected from some existing literature. Secondary Data that used in the study are Newspapers Websites Books Analysis Pattern Statistical Tools.Methods of Data Collection Primary Data usually consists of the data that are collected afresh for the first time and thus is original in character.graphs & charts Cross Tabulation Of Data . It has been already analyzed by some one else earlier and is derived from that source.
Data Presentation & Analysis .
45% respondents have taken Financial Service and rest 55% respondents have not taken the Financial Service. No. 1 2 Take Financial Service Yes No Total Nos.Analysis & Interpretation Q 1 Do you take any financial services from bank? Sr. 36 44 80 Percentage 45 55 GRAPH Take Financial Service 45% 1 Yes 2 No 55% Interpretation Out of total respondents. .
1 2 Know about Merchant Yes No Total Nos. 32 48 80 Percentage 40 60 Know about Merchant 2 No.Q 2 Do you Know about Merchant Banking? Sr. 60 60 50 40 30 20 10 0 Nos. 40 1 Yes 2 No Interpretation Out of total respondents. No. . 40% respondents Know about merchant banking and rest 60% respondents don‟t know about merchant banking. 1 Yes.
75 56.25 100 60 50 40 30 20 10 0 Percentage Percentage.Q 3 Are you satisfied with the services provided by your bank? Sr. . 35 45 80 Percentage 43. 56.75 Percentage.75% respondents Satisfied and rest 60% respondents don‟t Satisfied.25 1 Yes 2 No Interpretation Out of total respondents. 43. 43. No. 1 2 Satisfied Yes No Total Nos.
no 1 2 3 4 5 Bank ICICI SBI PNB BOI Other Percentage 20 35 20 15 10 40 35 30 25 20 15 10 5 0 icici sbi pnb boi any other icici sbi pnb boi any other Interpretation Large no. of companies takes financial services from SBI. .Q4 Are you satisfied with services offered by banks? Sr.
no 1 2 3 Position Good Normal Bad Total Percentage 50 35 15 100 Position Bad 3 15% Normal 2 35% Good 1 50% 1 Good 2 Normal 3 Bad Interpretation Out of total respondents. .Q 5 What is the position of Merchant Banking in Private Sector? sr. 35% Say Normal and rest 15% respondents say bad. 50% respondents Say Good.
Q 6 What is the position of Merchant Banking in Public Sector? sr. . 40% respondents Say Good.no 1 2 3 Position Good Normal Bad Total Percentage 40 55 5 100 Position 5% 40% 1 Good 2 Normal 3 Bad 55% Interpretation Out of total respondents. 55% Say Normal and rest 5% respondents say bad.
D. 1.) Gold Land Papers Third person security Total: Nos. Type of Security Bank Security (F.5 0 62. gold land paper third person bank sec.5 15 100 50 45 40 35 30 25 20 15 10 5 0 bank sec.No. 18 0 50 12 80 Percentage 22. 4. 2. 3.Q7 What type of security have you deposited/you will deposit with the banks ? Sr. gold land paper third person .
Q 8 Are you satisfied by Security margin of bank? Sr.No. Percentage 70 60 50 40 30 20 10 0 Yes No Yes No Interpretation Out of total respondents. Yes No Total: 64 16 80 80 20 100 Nos. . 2. Satisfaction by Security Margin 1. 80% respondents Satisfied and rest 20% respondents don‟t Satisfied.
.Q 9 Are you satisfied with timely services provide by banks? Sr. 56 24 80 Percentage 70 30 100 Depends on M.B 56 1 Yes 2 No 1 Yes 24 2 No Nos. Interpretation Out of total respondents. No.B Yes No Total Nos. 75% respondents Say that They are timely heared and rest 25% say that They are not timely served by merchant banking. 1 2 Depends on M.
Q10 Will it differ from investment banks? Sr. 60 20 80 Percentage 75 25 100 60 50 40 30 20 10 0 Yes No Yes No Interpretation Out of total respondents. . No. 1 2 Difference Yes No Total Nos.75% respondents Think that It is differ and rest 25% respondents don’t Think so.
But due to liberalization of economy the scenario has changed many private Merchant Banking companies have entered in the industry since then. Public sector merchant banking companies facing stiff competition from the private sector companies.COMPARISION BETWEEN PUBLIC & PRIVATE SECTORS Public Sector is the pioneer in providing Merchant Banking services in India. Market Share Public Sector= 66% Private Sector= 34% 70% 60% 50% 40% 30% 20% 10% 0% public sector private sector Series1 .
Findings & Conclusions .
Conclusion Longstanding client relationships Strong positions in high-growth client and product niches. Multiple revenue growth initiatives are in place with detailed and concrete action plans. Small & Medium scale enterprises SMEs need immediate attention from merchant bankers to get access to finance. Growth is controlled by a sound Risk Management System and disciplined cost management. SMEs are facing stiff competition from large scale companies. and with rigorous follow-up mechanisms. .
Study would be confined to only 7-8 public & private sector merchant banking companies. There can be a possibility of “individual biasness” on the part of respondents. Sample size to be taken may not be the true representative of the population.LIMITATIONS OF THE STUDY Due to paucity of time only limited information can be collected. .
Chapter 6 .
BIBLIGRAPHY i.in/subsidiaries http://www.asialaw.com www.html http://www.emissarycapital.com/news www.answer. Nisha Aggarwal INTERNET www. iv.com/Article/1988860/Merchant-Banking.google.in http://www.com http://www.com www.gov. KOTHARI Financial Institutions & Market By Shashi K. NOTES RESEARCH METHODOLOGY BY C. ii.kotaksecurities.co.com http://www.sebi.bobcapitalmarkets.com www.pnbindia.in .sbicaps.R.com http://www.icicisecurities.canmoney.in http://unionbankofindia. Gupta.wikipedia.com http://www. iii.
Questionnaire Respondent’s Profile Name Age Gender :_______________ :_______________ :_______________ Occupation :_______________ 1. Do you know about Merchant Banking? (a) Yes ( ) (b) No ( ) 3. What is the position of Merchant Banking in Private Sector? (a) Good (c) Bad ( ( ) ) (b) Normal ( ) . Do you take any financial services from bank? (a) Yes ( ) (b) NO ( ) 2. Are you satisfied with the services provided by your bank? (a) Yes ( ) (b) No ( ) 4. Which bank provide you maximum services? (a) ICICI (c) PNB ( ) ( ) (b) SBI (d) BOI ( ( ) ) (e) OTHER(specify) 5.
Are you satisfied by Security margin of bank? (a) Yes ( ) (b) No ( ) 9. Will it differ from investment banks? (a) Yes ( ) (b) No ( ) . Non-financial institution depends on merchant banking. What type of security have you deposited/you will deposit with the banks (a)Bank security (c) Land paper ( ) ( ) (b) Gold ( ) (d) Third party security ( ) 8.6. What is the position of Merchant Banking in Public Sector? (a) Good (c) Bad ( ( ) ) (b) Normal ( ) 7. Are you satisfied? (a) Yes ( ) (b) No ( ) 10.
FORTRESS CAPITAL MANAGEMENT SERVICES PVT LTD FORTUNE FINANCIAL SERVICES (INDIA) LTD GSFS CAPITAL & SECURITIES LTD HDFC BANK LTD IDBI BANK LTD. ARIHANT CAPITAL MARKETS LTD ARYAMAN FINANCIAL SERVICES LIMITED ASHIKA CAPITAL LTD ASIT C.K. LTD. LTD. CAPITAL SERVICES LTD ALLAHABAD BANK ALLBANK FINANCE LTD. LTD. DAIWA SECURITIES SMBC INDIA PVT LTD CREDIT SUISSE SECURITIES (INDIA) PVT LTD DALMIA SECURITIES PVT. CORPORATE STRATEGIC ALLIANZ PVT LTD D & A FINANCIAL SERVICES PVT. LTD.(FORMERLY INDUSTRIAL DEVELOPMENT BANK OF INDIA) IDBI CAPITAL MARKET SERVICES LTD . LTD. MEHTA INVESTMENT INTERRMEDIATES LTD ATHERSTONE CAPITAL MARKETS LTD AVENDUS CAPITAL PVT. BNP PARIBAS BOB CAPITAL MARKETS LTD BRICS SECURITIES LTD CALYON BANK (FORMERLY CREDIT AGRICOLE INDOSUEZ) CENTRUM CAPITAL LIMITED (FORMERLY CENTRUM FINANCE LTD) COMFORT SECURITIES PVT LTD CORPORATE PROFESSIONALS CAPITAL PVT. ALMONDZ GLOBAL SECURITIES LTD (FORMERLY ALLIANZ SECURITIES LTD) AMBIT CORPORATE FINANCE PRIVATE LTD ANAND RATHI FINANCIAL SERVICES LIMITED (FORMERLY ANAND RATHI SECURITIES PVT LTD) ANDHRA BANK ANTIQUE CAPITAL MARKETS PVT.APPENDIX-1 List of All Merchant Bankers Registered with SEBI A. DARASHAW & COMPANY PRIVATE LTD (FORMERLY BADAR FINANC DBS BANK LTD EDELWEISS CAPITAL LTD ELARA CAPITAL (INDIA) PRIVATE LIMITED EMKAY SHARE AND STOCK BROKERS LTD EQUIRUS CAPITAL (P) LTD ESCORTS SECURITIES LTD FIRSTCALL INDIA EQUITY ADVISORS PVT. LTD.
IMPERIAL CORPORATE FINANCE & SERVICES PVT LTD IND GLOBAL CORPORATE FINANCE PVT LTD INDIA CAPITAL MARKETS PRIVATE LIMITED INDIA INFOLINE LTD. LTD. JEFFERIES INDIA PRIVATE LIMITED KARN MERCHANT BANKERS LTD. NORTHBRIDGE CAPITAL LIMITED ORIENTAL BANK OF COMMERCE PADMAKSHI FINANCIAL SERVICES LIMITED PIONEER INVESTCO PL CAPITAL MARKETS PVT LTD PNB GILTS LIMITED PNR SECURITIES LTD PRIME SECURITIES LTD PUNEET ADVISORY SERVICES PVT LTD R R FINANCIAL CONSULTANTS LTD RABO INDIA SECURITIES PRIVATE LIMITED REAL GROWTH SECURITIES PVT.(FORMERLY INDIA INFOLINE SECURITIES PVT LTD) INDIABULLS SECURITIES LIMITED (FORMERLY ORBIS SEC LTD) INDUSIND BANK LTD INFRASTRUCTURE DEVELOPMENT FINANCE COMPA ING VYSYA BANK LTD. MACQUARIE INDIA ADVISORY SERVICES PVT LTD MAPE ADVISORY GROUP PVT LTD MASTER CAPITAL SERVICES LTD MEGHRAJ SP CORPORATE FINANCE (PVT) LTD MONEY MATTERS INVESTMENT ADVISORS PRIVATE LIMITED MOTILAL OSWAL INVESTMENT ADVISORS PVT.) LKP SECURITIES LTD (FORMERLY LKP SHARES AND SECURITIES LTD) LODHA CAPITAL MARKETS LTD LSI FINANCIAL SERVICES PVT. (ERSTWHILE THE VYSYA BANK LTD. KARVY INVESTOR SERVICES LTD KEYNOTE CORPORATE SERVICES LTD KHANDWALA INTEGRATED FINANCIAL SERVICES PVT LTD KHANDWALA SECURITIES LTD LAZARD INDIA PRIVATE LTD ( LAZARD CREDIT CAPITAL LTD. LTD.) INTEGRATED ENTERPRISES (INDIA) LTD (INTEGRATED ADVISORY SERV INTENSIVE FISCAL SERVICES PVT LTD INTER CORPORATE FINANCIERS & CONSULTANTS LTD. RELIGARE CAPITAL MARKETS LIMITED SAFFRON CAPITAL ADVISORS PVT LTD . NIRBHAY CAPITAL SERVICES PVT LTD NOMURA FINANCIAL ADVISORY AND SECURITIES (INDIA) PVT. LTD. IDFC-SSKI LTD. MPA FINANCIAL SERVICES LIMITED MUNOTH FINANCIAL SERVICES LTD N M ROTHSCHILD AND SONS (INDIA) PVT LTD NETWORTH STOCK BROKING LTD. LTD.
BANK OF AMERICA.A MORGAN STANLEY INDIA COMPANY PVT LTD DEUTSCHE BANK & DEUTSCHE EQUITIES INDIA PRIVATE LIMITED BARCLAYS BANK PLC BARCLAYS SECURITIES (INDIA) PVT. DSP MERRILL LYNCH LTD FEDEX SECURITIES LTD GOLDMAN SACHS(INDIA) SECURITIES PVT. LTD. (FORMERLY ECCENTRIC CAPITAL PVT LTD. SOCIETE GENERALE SPA MERCHANT BANKERS LIMITED SPARK CAPITAL ADVISORS (INDIA) PVT LTD SREI CAPITAL MARKETS LTD STANDARD CHARTERED-STCI CAPITAL MARKETS LIMITED STCI PRIMARY DEALER LIMITED SUMEDHA FISCAL SERVICES LTD TAIB CAPITAL CORPORATION LIMITED TAMILNAD MERCANTILE BANK LTD THE CATHOLIC SYRIAN BANK LTD TRUST INVESTMENT ADVISORS PVT LTD ULJK SECURITIES PVT. PUNJAB NATIONAL BANK STATE BANK OF BIKANER AND JAIPUR . LTD. LTD. N. J P MORGAN INDIA PVT. UNION BANK OF INDIA UNITED BANK OF INDIA VALUE LINE ADVISORS PVT LTD.) VCK CAPITAL MARKET SERVICES LTD. AXIS BANK LTD. LTD. SICOM LTD SMC CAPITALS LIMITED SOBHAGYA CAPITAL OPTIONS LTD. LIMITED SBI CAPITAL MARKETS LTD BANK OF MAHARASHTRA IFCI FINANCIAL SERVICES LTD KARUR VYSYA BANK LTD. LTD. CITIGROUP GLOBAL MARKETS INDIA PVT.(FORMERLY S B & T FINANCE PRIVATE LTD) VC CORPORATE ADVISORS PVT.(FORMERLY UTI BANK LTD. LTD.) BAJAJ CAPITAL LTD TATA CAPITAL MARKETS LTD ICICI BANK LTD (private) ICICI SECURITIES LTD RELIANCE SECURITIES LIMITED KOTAK MAHINDRA CAPITAL COMPANY LTD YES BANK LTD. SAL SECURITIES PVT.
MERCHANT BANKING PLAYERS IN INDIA .
LTD. AXIS BANK LTD.• • • • • • • • • • • • • • • • • • • • • • • • • • • VALUE LINE ADVISORS PVT LTD.) VCK CAPITAL MARKET SERVICES LTD. LTD. N. CITIGROUP GLOBAL MARKETS INDIA PVT. PUNJAB NATIONAL BANK STATE BANK OF BIKANER AND JAIPUR MERCHANT BANKING PLAYERS IN INDIA . LTD. BANK OF AMERICA. LTD.(FORMERLY S B & T FINANCE PRIVATE LTD) VC CORPORATE ADVISORS PVT. DSP MERRILL LYNCH LTD FEDEX SECURITIES LTD GOLDMAN SACHS(INDIA) SECURITIES PVT.) BAJAJ CAPITAL LTD TATA CAPITAL MARKETS LTD ICICI BANK LTD (private) ICICI SECURITIES LTD RELIANCE SECURITIES LIMITED KOTAK MAHINDRA CAPITAL COMPANY LTD YES BANK LTD. J P MORGAN INDIA PVT. (FORMERLY ECCENTRIC CAPITAL PVT LTD. LIMITED SBI CAPITAL MARKETS LTD BANK OF MAHARASHTRA IFCI FINANCIAL SERVICES LTD KARUR VYSYA BANK LTD.A MORGAN STANLEY INDIA COMPANY PVT LTD DEUTSCHE BANK & DEUTSCHE EQUITIES INDIA PRIVATE LIMITED BARCLAYS BANK PLC BARCLAYS SECURITIES (INDIA) PVT.(FORMERLY UTI BANK LTD.
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