JAIPURIA INSTITUTE OF MANAGEMENT

PGDM; TRIMESTER VI; ACADEMIC YEAR 2018-19

Course Code and title FIN601: Investment Banking

Credits 3
Term and Year VI Term, 2019-20
Course Pre-requisite(s) Students have successfully completed ADM, MAC
and FM
Course Requirement(s) Understanding of Corporate Finance
Course Schedule (day and time of class) As scheduled by PMC
Classroom # (Location) As allocated
Course Instructor Prof. (CA) Jatin Srivastava
Course Instructor Email jatin.srivastava@jaipuria.ac.in
Course Instructor Phone (Office) 9838987000
Student Consultation Hours 4:30 pm to 5:30 pm
Office location 2nd Floor, New Building

1. Course Overview, Program Level Learning Goals

Course Overview:

This course will provide a broad overview of investment banking. Investment Bankers provide variety of
services like underwriting, mergers and acquisitions advisory and corporate advisory etc. Investment Bankers
also play an important role at the time of issue management and in share repurchase also.

The objective of this course is to provide the students with an insight of the structure and functioning of
investment banking industry in India. The course will focus on discussing the various services offered by
investment banks and the allied businesses to investment banking. Students will also learn the trends of the
investment banking industry.

Module I will cover the introduction to investment banking, its characteristics, business portfolio of Investment
bank. Module II deals with the services provided by investment bank when a company enters and exit from
the market. It will cover process of underwriting and issue management involve while raising the capital. It
will also deal with the role of investment banking in issue management and underwriting. This module will
also cover ADR’s and GDR’s and role of Investment Banker in Cross Border issues. This will acquaint students
with the role of investment banking in share repurchase. This will also deal with delisting of shares. Module
III will give understanding of the role of IB in Corporate Restructuring and Advisory Services. It also deals
with the best practices of Investment Bank. It will cover topics like pitch book deck, client interaction and deal
making.

This course includes caselets to analyze and apply the concepts in practical business problems followed by
class discussion. They are not necessarily intended to illustrate either correct or incorrect handling of
management problems but they are the tools to involve students to analyze a problem, to weigh various factors
involved in it and to make some calculations. The case analyses help students to take a position, to understand
and appraise the arguments of fellow students and to reach to some decision.

With group discussion based teaching methodology the whole course will be delivered though Caselet
discussions.
2. Course Learning Outcomes (CLO)

CLO1: Explain Investment banking portfolio of services and role of investment banker (K)
CLO2: Examine various market entry and exit scenarios, and related strategic and legal implications (K)
CLO3: Analyze the impact of share pricing, underwriting, commission and devolvement on Investment
Banks (K&S)
CLO4: Differentiate various forms of Corporate Restructuring and its implication (K&S)
CLO5: Evaluate hostile takeover tactics and related defense strategies (K)

3. Mapping of CLOs with PLOs and GAs

PLO-1 PLO-2 PLO-3 PLO-4 PLO-5 PLO 6 PLO-7 PLO-8

(Communic (Demonstrat (Apply (Develop an (Evaluate (Discuss (Leverage (Demonstrat
ate e relevant entrepreneur the sustainable technologies e capability
effectively Leadership conceptual ial mindset relationship and ethical for business as an
and display and frameworks for optimal between business decisions) Independent
inter- Teamwork for effective business business practices) learner)
personnel towards decision- solutions) environment
skills) achievement making) and
of organization
organization s)
al goals)
CLO1
CLO2 X (L) X (L)
CLO3 X (L) X (L)
CLO4 X (L) X (L)
CLO5

GA 1 GA 2 GA 3 GA 4 GA 5 GA 6 GA 7 GA 8
(Self- (Deep (Critical (Humility, (Open and (Global (Ethical (Entreprene
Initiated) Discipline Thinking & Team- Clear Outlook) competency urial and
Knowledge) Problem Building Communica and innovative)
Solving) and tion) sustainable
Leadership mindset)
Skills)
CLO1 X
CLO2 X X
CLO3 X X
CLO4 X X
CLO5 X X

Blocks in colour are key differentiators

4. Recommended/ Reference Text Books and Resources

Recommended/ Reference Text Books and Resources:

Text Book:

Pratap G Subramanian, Investment Banking, Concepts , Analyses and Cases, CFM-McGraw-Hill Professional
Series in Finance

Reference Books:

 Machiraju, H R, Merchant Banking, Fourth Edition, New Age International Publishers, New Delhi
 Weston., J.F, Chung, K.S., and Hoag, S.E. (WCH) Mergers, Restructuring and Corporate Control, PHI
Learning, new Delhi, 2011.
 Sashidharan , K. and Mathews, Alex, Financial Services and System, Tata McGraw-Hill, New Delhi
 Khan, M. Y., Financial Services: M.Y. Khan, Fourth Edition, Tata McGraw-Hill, New Delhi.
 Gurusamy, S., Merchant Banking and Financial Services, Second Edition, Tata McGraw-Hill, New Delhi

Online Learning Resources:

 www.aibi.org.in
 www.mergersandinquisitions.com
 www.sebi.gov.in

The students are also advised to read The Economics Times regularly and visit
http://topics.bloomberg.com/investment-banking/ for getting the latest updates.

5. Evaluation Criteria

Component Description Weight CLOs

Quizzes There shall be two quizzes with multiple choice 10% Quiz 1 - CLO 1,
questions equally distributed in the session plan 2, 3

 Question bank of minimum 20 questions to be Quiz 2 - CLO 4,

created for a quiz of 10 questions. The format 5
of the quiz would be 20% basic, 50%
intermediate and 30% advanced level.
 Individual assessment: Moodle based.
 Pre/In/beyond class: Beyond class
 Feedback: Moodle grades
 Testing: Knowledge and Attitude (Ethics)

Project It will be on group (group of 6 students) basis. 20% CLO 4, 5

 Group Assessment: Written, Soft &

Presentation
 Submission after 20th session
 Pre/In/beyond class: Presentation in class
 Feedback: Through rubrics and counselling as
required.
  Testing: Knowledge, Skills and Attitude
(Ethics)

A separate Project Note with details will be

circulated at the beginning of the course

Class Participation Students will be evaluated for their active 10% CLO 2, 3, 4
and Moodle contribution in class discussions and moodle
Discussion Forum discussion forum, relevance of contribution and
overall conduct during classes.

 All students are to participate in-class

discussion and in discussion forum
 Individual Assessment: In-class participation
and discussion forum
 Pre/In/beyond class: In-class and beyond class
 Feedback : Individual
 Testing: Knowledge and Attitude (Behavior &
Ethics)

Comprehensive The class will be divided into groups for a 20% CLO 2, 3
Case analysis comprehensive case analysis to be done in class.
Two cases will be given to two set of groups. The
students will analyze and present the case in class
and submit the analysis summary in word format

 Group Assessment: Written, Soft &

Presentation
 Coverage - Till 18 Sessions
 Submission after 20th session
 Pre/In/beyond class: Presentation in class
 Feedback: Through rubrics and counselling as
required.
 Testing: Knowledge, Skills and Attitude
(Ethics)

End Term The end-term question paper would also test the 40% CLO 2, 3, 4, 5
Examination conceptual understanding, however it would
comprise of model development based on a
comprehensive case. It will be based on entire
syllabus.

 Description: The paper would comprise

questions which are: 20% basic, 50%
intermediate and 30% advanced level.
 Timing: As per schedule
 Coverage: Whole
 Feedback: Showing of assessed answer sheets.
 Testing: Knowledge and Skills

Total 100%
6. Session Plan

Session Topic Requirements: Pedagogy Session Learning CLO

Readings/ Cases Outcome
Module 1: Introduction to Investment Banking
1 Overview of  Ref - “Too Big to  Lecture Understanding of 1
Course Fail” Movie investment banking
Group industry and Expectation
Introduction,  Chapter 2; Page 71 Discussion Setting
History and dark to 96 of caselets
side of Investment
Banking  Caselets – Bear
Sterns, Lehman
Bros, Barings bank

2 Business  Chapter 2; Page  Lecture Comprehending various 1

Portfolio, 98-109 services offered by IB in
Characteristics Group India and Globally
and Structure of  Caselets –Axis Discussion
Investment acquisition of of caselets
Banking ENAM

 Exhibits: 2.3 and

2.4; Page 100, 109

3 Interdependence,  Chapter 2; Page  Lecture Understanding 1

Regulatory 129-137 regulatory framework of
Framework and Group IB and case of Banker
Conflicting issues  Caselets – J.P Discussion proved to fatal
affecting Morgan and of caselets
Investment Barclays Bank
Banking

Module 2: Market Entry and Exit Services

4 Managing  Chapter 5; Page  Lecture Understanding various 2
Domestic Issue: 240-258, Page- types of offers and
Types of Security 272 -274  Group regulations pertaining to
issues, Supporting Discussion those offers
regulations and  Terminology: of caselets
Role of Issue Page 241
Manager
 Caselets – TCS

5 Managing  Chapter 5; Page  Lecture Understanding important 2

Domestic Issue: 274-296 concepts of domestic
Types of  Group issues
Instruments, Caselets: Discussion
Capital Structure,  Indian Hotels, of caselets
Issue Structure, Network 18
(Types of
Instrument)
 Biocon (Capital
Structure)
  MCX IPO (Issue
Structure)

6 Managing  Chapter 5; Page  Lecture Understanding the 2

Domestic Issue: 297-312 process of Rights Issue
Process overview,  Group and Debt Instrument
Rights and Debt  Exhibits – 5.1 Discussion
securities (Page 299) of caselets

 Illustration –
Page 304 (Rights)

7 Managing  Chapter 5; Page  Lecture Understanding how 3

Domestic Issue: 274-296 pricing of domestic issue
Pricing, Cut off  Group is determined
Price  Illustrations – Discussion
Page 280-282 of caselets

 Caselet – Maruti
Udyog, Iflex
Solutions (Cut off
Price)

8 Underwriting of  Chapter 6; Page  Lecture Understanding of 3

Securities: 322-338 Underwriting concepts
Concepts and  Group and process
Process  Terminology – Discussion
Page 322 of caselets

9 Underwriting of  Chapter 6; Page  Lecture Understanding of 3

Securities: 322-338 Underwriting
Commission and  Group commissions and
Devolvement  Illustrations – Discussion devolvement
Page 326-327, 324 of caselets

10 Introduction to  Chapter 7; Page  Lecture Understanding different 2

Global Market 341- 362 instruments to raise
(Equity)  Group capital from overseas
Equity Issues  Exhibits – 7.1, 7.2 Discussion
through (Page 349, 351) of caselets
Depository
Receipts  Caselets – WNS,
ADR’s and Suzlon, Wockhardt
GDR’s

11 Market Exits:  Chapter 8; Page  Lecture Understanding the 2

Buyback, 386-414 strategy and practical
Delisting and  Group issues in reference to
Relisting  Illustration – Discussion buy back, delisting and
Page 395 of caselets relisting of shares

Caselets –
 Sterlite (Buyback)
  Bausch & Lomb
India (Delisting)
 Iflex (Failed
delisting)

12 Class   Class The Case will be 2, 3

Presentations – Presentation presented by the groups
Case Analysis in class and evaluated
accordingly
Groups – 1-4

13 Class   Class The Case will be 2, 3

Presentations – Presentation presented by the groups
Case Analysis in class and evaluated
accordingly
Groups – 5-8

Module 3: Corporate Restructuring and Advisory Services

14 Introduction to  Chapter 10; Page  Lecture Understanding corporate 4
Corporate 467 - 475 restructuring and role of
Restructuring:  Group Investment Bankers in
Forms of  Caselets –Aditya Discussion Corporate Restructuring
Corporate Birla, Wipro, UB, of caselets
Restructuring and Reliance Towers Quiz covers session
Services offered 1-11
by Investment
Banker

15 Motives,  Chapter 10; Page  Lecture Understanding the 4

Advantages and 467 - 475 objectives, advantages
Challenges of  Group and challenges of CR
Corporate  Caselets - RPG, Discussion
Restructuring Godrej & Boyce, of caselets
Indus Towers

16 Expansion:  Chapter 11; Page  Lecture To understand Corporate 4

Merger, 524-538 Restructuring aimed as
Acquisitions,  Group expansion of business
Tender offer,  Caselets - ICICI- Discussion
Joint Venture, ICICI Bank, Sesa of caselets
Reverse merger Goa – Sterlite,
Arcelor – Mittal

17 Contraction:  Chapter 10; Page  Lecture To understand Corporate 4

Demerger (Spin 471-500 Restructuring aimed at
off, Split offs,  Group contraction of business
Split ups)  Caselets - TCS, Discussion
Divestiture (Sell Jindal Group, of caselets
off), Equity carve Bharti Group
out

18 Corporate  Chapter 9; Page  Lecture To understand Corporate 4

Control: Share 386 - 418 Restructuring through
Repurchase, Buy-
 Back, Exchange  Group change in corporate
Offers, Takeover  Caselets - ONGC, Discussion control
defenses Bajaj Auto, Ricoh of caselets
India

19 Changes in  Chapter 9; Page  Lecture To understand Corporate 4

ownership: LBO, 391-400, 406 - 414 Restructuring through
MBO, Going  Group change in Ownership
private, Delisting  Chapter 10; Page Discussion
580-584 of caselets

 Caselets - Tata-
Chorus LBO,
RIM, Motorola

20 Defense Tactics  Handouts  Class To gain insights on 5

and other relevant Discussion defense tactics adopted
factors affecting to stall restructuring
Corporate
Restructuring

21 Comprehensive  Case: L&T –  Group Comprehensive analysis 5

Case Discussion Grasim Case Discussion of Case. Discussed and
(Page 505) presentation to be done
by the Groups in Class

22 Industry Best  Discussion and  Lecture Understanding Pitch 1

Practices Handouts book Deck, Client
(Summing up the Interaction and other
course) best practices

Quiz covers session

14-21

23 Class  Class The Project will be 4, 5

Presentations Presentation presented by the groups
in class and evaluated
Groups – 1-4 accordingly

24 Class  Class The Project will be 4, 5

Presentations Presentation presented by the groups
in class and evaluated
Groups – 5-8 accordingly
7. Time budgeting in course planning:
The table below is an example of the suggested time allocations for this course.
Classes 2-3 hours per week for 12 weeks 30 hours
Reading Prescribed readings and making notes 20 hours
Preparation of set questions,
Provided in the book 20 hours
exercises and problems
Preparation of Project (including the
Analyzing and writing 20 hours
Viva)
Study and revision for test and end
Self-preparations 15 hours
of Trimester examination
TOTAL 105 hours

8. RUBRICS FOR ASSESSMENT COMPONENT

RUBRICS FOR QUIZ (10 Marks)

POOR FAIR GOOD EXCELLENT

Marks 0-3 Marks 4-5 Marks 6-8 Marks 9 – 10
ONLY UP TO 30% BETWEEN 40 – BETWEEN 60 – 80% MORE THAN 80%
ANSWERS ARE 50%(both inclusive) (both inclusive) ANSWERS ARE
CORRECT ANSWERS ARE ANSWERS ARE CORRECT
CORRECT CORRECT
UNSATISFACTORY MINIMAL PROFICIENT EXEMPLARY
A very few of the Some of the concepts are Majority of concepts are Most of concepts are
concepts are clear and clear and understood by clear and understood by clear and understood by
student is unable to student. student. the student.
reflect the same.

RUBRICS FOR END TERM (40 Marks)

POOR FAIR AVERAGE GOOD EXCELLENT

Marks less than Marks greater Marks greater Marks greater Marks greater
or equal to 6 than 6 and less than 12 and less than 20 and less than 30 and less
than or equal to than or equal to than or equal to than or equal to
12 20 30 40
POOR SKILLS FAIR SKILLS AVERAGE GOOD SKILLS EXCELLENT
ARE ARE SKILLS ARE ARE SKILLS ARE
REFLECTED REFLECTED REFLECTED REFLECTED REFLECTED
AND ONLY UP AND ONLY UP AND ONLY UP AND ONLY UP AND MORE
TO 15% TO 30% TO 50% TO 75% THAN 75%
ANSWERS ARE ANSWERS ARE ANSWERS ARE ANSWERS ARE ANSWERS ARE
CORRECT CORRECT CORRECT CORRECT CORRECT
Most of the A few of the Many concepts are Majority of the Most of the
concepts are not concepts are clearly clearly understood concepts are clearly concepts are clearly
clear and student is understood and the and the student is understood and the understood and the
unable to reflect the student is able to able to reflect the student is able to student is able to
understanding. reflect the same. same. reflect the same. reflect the same.
RUBRICS FOR CASE DISCUSSION (15 Marks)

CRITERIA INADEQUATE ADEQUATE ABOVE ADVANCED

AVERAGE
POINTS POINTS 25%- POINTS 50%- POINTS
0-24% 49% 75% (Above 75%)
Case Analytical Poor Analytical Adequate Appropriate Outstanding
Analysis Ability & Ability & Low Analytical Analytical Analytical
Logical Logical Ability and Ability and Ability and
(Weightage Reasoning Thinking Skills Average Logical Healthy Logical Exceptional
– 75% Skills Thinking Skills Thinking Skills Logical
Thinking Skills
Marks - Weightage-10
15) Marks

Organisation/F Incoherent flow Demonstrates Coherent and Completely as

ormat & Style of the thematic logical flow of specified flow of per defined
topics offered the theme/ topics the theme/ topics matrices and
Weightage-5 and fails to offered. Some offered. Overall clearly leads to
Marks follow points are unity of ideas logical
prescribed missing and present and conclusion and
format & style follows follows follows
prescribed prescribed prescribed
format to a format majorly format in detail
limited sense &
style is simple.

Class Presentation A few of the Many aspects A majority of Most of the

Presentatio Style aspects are well are well the aspects are aspects are well
n presented by the presented by the well presented presented by the
Weightage-2.5 student. student. by the student. student.
(Weightage Marks
- 25%
Explanation of Poor Adequate Appropriate Outstanding
Marks - 5) the Project Explanation of Explanation of Explanation of Explanation of
(Query the Project the Project the Project the Project
handling)

Weightage –
2.5 Marks
RUBRICS FOR PROJECT ASSIGNMENT & CLASS PRESENTATION (20 Marks)

CRITERIA INADEQUATE ADEQUATE ABOVE ADVANCED

AVERAGE
POINTS POINTS 25%- POINTS 50%- POINTS
0-24% 49% 75% (Above 75%)
Project Analytical Poor Analytical Adequate Appropriate Outstanding
Assignment Ability & Ability & Low Analytical Analytical Analytical
Logical Logical Thinking Ability and Ability and Ability and
(Weightage Reasoning Skills Average Logical Healthy Logical Exceptional
- 75% Skills Thinking Skills Thinking Skills Logical Thinking
Skills
Marks -15) Weightage-10
Marks

Organisation/ Incoherent flow Demonstrates Coherent and Completely as

Format & of the thematic logical flow of specified flow of per defined
Style topics offered the theme/ topics the theme/ topics matrices and
and fails to offered. Some offered. Overall clearly leads to
Weightage-5 follow points are unity of ideas logical
Marks prescribed missing and present and conclusion and
format & style follows follows follows
prescribed prescribed prescribed
format to a format majorly format in detail
limited sense &
style is simple.

Class Presentation A few of the Many aspects A majority of Most of the

Presentatio Style aspects are well are well the aspects are aspects are well
n presented by the presented by the well presented presented by the
Weightage-2.5 student. student. by the student. student.
(Weightage Marks
- 25%
Explanation of Poor Adequate Appropriate Outstanding
Marks - 5) the Project Explanation of Explanation of Explanation of Explanation of
(Query the Project the Project the Project the Project
handling)

Weightage –
2.5 Marks
Institute’s Policy Statements

The student is required to have a clear comprehension of the specific details included in this document. This
course requires a significant commitment in and outside classroom. The learning tasks in this course include
class discussions, exercises & problems and self-study. In addition, students are required to complete the
various assignments/projects.

LMS-Moodle/Impartus

LMS-Moodle/Impartus is used to host course resources for all courses. Students can download lecture,
additional reading materials, and tutorial notes to support class participation.

Referencing

Project Report should have proper referencing in APA format.

Attendance and Participation

Refer STUDENT HANDBOOK

Late Submission

Assessment tasks submitted after the due date, without prior approval/arrangement, will be not be accepted.
Requests for extension of time must be made with the faculty member concerned and based on Special
Consideration guidelines.

Plagiarism

Plagiarism is looked at as the presentation of the expressed thought or work of another person as though it is
one's own without properly acknowledging that person. Cases of plagiarism will be dealt with according to
Plagiarism Policy of the institute. It is advisable that students should read Student Handbook for detailed
guidelines. It is also advisable that students must not allow other students to copy their work and must take
care to safeguard against this happening. In cases of copying, normally all students involved will be penalized
equally; an exception can be made if a student can demonstrate the work as their own and reasonable care was
exercised to safeguard against copying.