Internship Report submitted in partial fulfillment of the requirement. for the Award of the Degree of Bachelor of Engineering in Electronics Engineering by Hrithik Jain under the employment of J.P. Morgan Chase Department of Electronics Engineering Bharatiya Vidya Bhavan’s Sardar Patel Institute of Technology (Autonomous Institute Affiliated to University of Mumbai) Munshi Nagar, Andheri-West, Mumbai-400058 University of Mumbai. June 2022Certificate This is to certify that the "Internship Report” submitted by Hrithik Jain is work done by him at J.P Morgan Chase and submitted during the 2021-2022 academic year, in partial fulfillment of the requirements for the award of Degree of Bachelor of Engineering in Electronies Engineering from University of Mumbai. Certified by Dr Dhananjay Kalbande Dr B.N.Chaudhari Dean Industry Relations Principal Department of Electronics Engineering Bharatiya Vidya Bhavan's Sardar Patel Institute of Technology (Autonomous Institute Affiliated to University of Mumbai) Munshi Nagar, Andheri(W), Mumbai-400058 University of Mumbai Je 2022Acknowledgments Tam deeply grateful to the Principal, Dean of Industry Relations and the Training and Placement Officer of my Institute for successfully arranging the semester long internship program for me. Talso thank J.P. Morgan Chase, for giving me the opportunity to intern at their prestigious organization, During my internship, T had the kind association as well as supervision of Mr-Farhad Collabawala. His exemplary guidance, constant mentoring and careful monitoring contributed immensely towards the successful completion of the various tasks and investment banking project that I was working on. All the individuals that worked along with me at J.P Morgan Chase; their pa- tience and openness created an enjoyable working environment for me. I acknowl edge the help of all of these individuals with an immense sense of gratitude.Abstract JPMorgan Chase Co. is an American multinational investment bank and oper- ates as a financial services company worldwide. It operates through four segments: Consumer Commnnity Banking , Corporate Investment Bank (CIB), Commer- cial Banking, and Asset Wealth Management. The am aligned to the CIB segment which provides investment banking products and services, including corporate strat- egy and structure advisory, and equity and debt markets capital-raising services, as well as loan origination and syndication; payments and cross-border financing; and cash and derivative instruments, risk management solutions, prime brokerage, and research 1 was part of the Diversified Industrial and Transportation coverage team to provide M&A advisory services to Asia-Pacific clients. ‘The primarily problem we solve is access to investors and resources to raise either debt or equity. We worked on this problem by performing deep-dive research, financial anal- building profiles, pitch book creation, valuation and using various financial struments and templates for prospective client and helped them raise capital. According to the nature of my work at J. P. Morgan, this report will contain the various deals I was part of during the 6 month tenure along with the challenges faced and lessons learnt in doing so. This has been a great learning opportunity for me in the field of investment banking, During my tenure with J.P Morgan, my team and I helped executed various multi-billion dollar deals in the Automobile, Logistics, Healthcare and Industrial market of Asia-Pacific region. This enables the company to generate income through leveraging its strong financial networks and consulting expertise. ysContents Introduction 1.1 LP. Morgan CRG 1.2 Location of Internship 1.3 Project Description 14 Contribution 1.4.1 Investment Rationale 1.4.2 Company Profile 143 Valuation Internship Objectives 2.1, Learning Objectives ‘Monthly Progress 3.1 January 2022 3.2 February 2022 3.3. March 2022 3.4 April 2022 3.5 May 2022 3.6 June 2022 Results and Discussion 4.1 Achievement of Internship Objectives 4.2. Procurement of Industry Skills 4.3 Project Results 4.4 Challenges Tackled ConclusionList of FiguresList of TablesChapter 1 Introduction 1.1 J.P. Morgan CRG In J.P. Morgan Chase I was alligned to the CRG team that primarily focuses on providing support to front-end bankers around the globe. According to the need of the client, the bankers send us requests which we further work on, With J.P Mor- gan’s motto ’A Commitment to Integrity, Fairness and Responsibility’, we diligently ‘output based on the best practices. 1.2 Location of Internship The first three months of the internship were held in the online mode due to the third Covid Wave, Subsequently, we were asked to come on the office floor located in LT Business Park in Powai wherein the peer to peer learning was much greater. 1.3. Project Description The project aimed at performing a deep dive analysis of client company and the industry for strategic opportunity with potential buyers. We had to analyze and provide rationale between the client and buyer along with the complete valuation of the client, creating a marketing deck for the company. These kind of analysis gave exposure to the core of investment. banking sector 1.4 Contribution We are expected to do a deep-dive analysis on the Target allocated to us and the industry in which the Target operates. We analyzed the Target on the below pa- ramet 1.4.1 Investment Rationale We are required to consider these investment rationale from the perspective of an MA of the target based on macroeconomic, industry specific and company specificdevelopments, We also had to back our considerations with stats and logical rea- soning, 1.4.2 Company Profile A company profile primarily consists of the following ~ 1. Business description about the company and recent developments 2. Revenue / EBITDA breakdown charts based on business segment and geography 3. Shareholding pattem 4. Public Market Overview 5. Market data 6. Actual as well as forecasted financials (Revenue, Net Income ete.) 7. Key sector/industry specific multiples (FV/EBITDA, P/E, Dividend yield, ete.) 8. Credit metrics (Net debt LTM EBITDA, Net debt / Total capital, etc.) 9. Last two years daily share price performance line chart 10. Broker recommendations (ANR) in table format 11, LTM equity research recommendation [ Buy / Hold / Sell ] 12. Top 20 shareholders and change in shareholding in the last 12 months 13. Top bnyers and sellers in the same period 14, Portfolio map detailing seale of operations geographically 15, Business segments, if applicable 1.4.3. Valuation The Target is valued using the following methods - 1.Valnation based on comparable transaction multiples 2.Valuation based on comparable trading multiples 3.Valuation based on regression (if applicable) 4.Valuation based on current share prices 5.Valuation based on broker recommendations 6.Valuation based on DCF /DDMChapter 2 Internship Objectives 2.1 Learning Objectives Internships are educational and career development opportunities, providing prac- tical experience in a field or discipline, They are structured, placements often focused around particular tasks or projects An internship may be compensated, non-compensated or some time may be paid. The internship has to be meaningful and mutually beneficial to the intern and the organization, It is important that the objectives and the activities of the internship program are clearly defined and understood. Following are the intended objectives of internship training- ‘* Expose technical students to the industrial environment, which cannot be simulated in the classroom, thereby creating competent professionals for the industry ‘* Provide possible opportunities to learn understand and sh technical /managerial skills required at the job pen the real time ‘* Expose students to the current technological developments relevant to the subject area of training, ‘© Utilize the experience gained from the ‘Industrial Internship’ in classroom diseussions. '* Create conducive conditions in the quest for knowledge and its applicability on the job. * Learn to apply their technical knowledge in real industrial situations ‘* Gain experience in writing technical reports/projects. ‘* Expose students to the responsibilities and ethies of the engineering profession. + Familiarize students with the various materials, processes, products and their applications along with relevant aspects of quality control. '* Promote academic, professional and/or personal development‘* Expose the students to future employers, ‘¢ Understand the social, economic and administrative considerations that influ- ence the working environment, of industrial organizations ‘* Understand the psychology of the workers and their habits,attitudes and ap- proach to problem solving.Chapter 3 Monthly Progress 3.1 January 2022 The first three weeks of the internship were pri arily set for training which included training on making company profiles, uses of various databases, accounting and excel sessions ete. I studied and understood various tools and gained other basic knowledge to apply in the upcoming months 3.2 February 2022 We were introduced to our teams in the second month, the primary focus in this month were the team specific training where we understood the dynamics and re- quirements of our team . We were also given internal assignments before we eould start working on actual staffing. Towards the end of the month, we started working on relatively easy staffing of bench-marking, deep research, spreading trading and transaction comparable ete. 3.3 March 2022 The third month was one of the most intense in my journey with higher deals being closed towards the financial year end, The work assigned started to get challenging by this time with focus on company specifie profiles, spreading of comps, building different financial charts, preparing decks etc. We also gave a midterm presentation in which I spoke about the ESG segment’s growth into the industry 3.4 April 2022 The primary focus in the month of April was valuation where in we had valuation training and the team started involving us in complex models and backups. The primary learning was the assumptions we take in different scenarios and their im- plications. In this month I was also given responsibility towards automobile and logistics industry where I had to do industry and company specific research, sum- marize recent developments, spread comps for specific companies on weekly basis Through this task I learnt a lot about these two sectors,3.5 May 2022 Istarted getting direct staffing from the front-end bankers on marketing decks, In this month T got to know about the investment banking process regarding how deals are made etc, The learning I got from interacting with front-end bankers and just realizing the difference in knowledge and skills was humbling, 3.6 June 2022 June was primarily occupied on making our major project for presenting it to our sec- tor heads. It was a full-fledged projects including all aspects of Investinent Rational, Company Overview and Valuation, We had a presentation and question and answer session based on the same. The project for me was again a sell-side deck alignment to potential acquirers, Currently I am working on another execution/confidential project. 6Chapter 4 Results and Discussion 4.1 Achievement of Internship Objectives The primary objective of the internship was accomplished with high industry level exposure brought to the interns on various deals. Apart from various technical skills as well as soft skills, working in high pressure situations efficiently was also very valuable to all the internship 4.2 Procurement of Industry Skills Teamwork and communication skills were the core of our daily work and I have really developed upon those skills. The various training sessions have taught us the essence of deal-making and I look forward to applying the same in any future venture I am part of. 4.3 Project Results ‘* Made weekly market deck on two industries sent directly to JP Morgan exee- uitives '* Worked on five client projects with deal under progress ‘© Learnt soft and financial skills to be ready for future opportunities 4.4 Challenges Tackled There were two major challenges I faced in this internship: ‘* Majority of other team member being CAs or MBAs, it was difficult to eon- ‘ions in the team however, I worked on improvising, myself to add value to the team tribute to financial discu '* The thought process and attention to details were not par with the front-end bankers so that was as big stepping stone as wellChapter 5 Conclusion The experience at JP Morgan taught me how corporate organisations work and what kind of functions are carried out by its different departments. The teammates, manager and senior bankers have contributed towards by development throughout the internship. peer to peer learning and networking with other interns has been extremely value-able. We interns have applied the values our professors taught us into the real world and that has surely set us apart. The overall experience and learn ing the banking sector through the internship has made me inquisitive ndustry and I would always be grateful to the college for presenting this opportunity to me. ng regal about knowing more about the