Services Of an  Investment Banking  Company

Services Of an Investment Banking Company

October 29, 2020 Admin
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What is an Investment Bank

 

Meaning of an Investment Bank from a broader perspective can be perceived as financial bodies acting as intermediaries between a borrower and an investor, who sources capital for the former, from the latter. Investment banking Firm don’t cater to the general public like traditional commercial banks. Public and private sector companies and HNIs majorly comprise of their customer base. The key function of an Investment banking company is to raise debt and equity funds and facilitate business expansion of their clients. They also offer a plethora of financial advisory services related to Merger and Acquisitions, security trading, custodian services, new issues or IPOs, corporate restructuring, asset management, market research, etc. In definition as per SEBI, “merchant banker” means 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, adviser, or rendering corporate advisory service in relation to such issue management.

Services Of an  Investment Banking  Company

Main services of an Investment banking Company:

  • Raising Capital: Any company interested in exploring opportunities such as acquisition, expansion, project funding, debt load reduction would require sizeable capital. To help them meander through these tasks, it’s logical to rope in an investment banking company and benefit from their expertise. The Investment bank aids by raising capital in the form of debt and equity. This is the breadwinning function that any investment banking company undertakes that involves sub-tasks such as instrument designing, document registration, issue pricing, Issue marketing underwriting, listing on the stock exchange, allotment, etc.
  • Mergers and Acquisition: Investment Banks play a pivotal role in both purchase and sales transaction of a Merger and Acquisition case. Their seamless handling procedures and in-depth analysis of microscopic details is crucial in forecasting the fate of the union. In order to facilitate such a transaction whilst ensuring the ROI surpasses, the appointed Investment Banking company conducts a detailed analysis and a thorough valuation of the organization. This function is not limited here and at times it rather extends to recognizing, shaping, and pursuing an end-to-end merger transaction.
  • Trading and sales: These services coalesce with companies that are now or in future will be traded publicly. Functions in this area involve new offer placement, stock marketing, researching, reporting, and publishing.
  • Advisory services: An investment banking company offers a host of services under this category such as, business valuation, strategic planning, financial restructuring, asset analysis, etc. They also analyze the working capital flow, its consumption trends, design and offer solutions to optimize and enhance that, plan deployment of transient funds. Their enriching advisory services also help in realizing a feasible project through feasibility analysis depicted in a detailed project report.
  • Loan Syndication: When a sumptuous capital influx is needed in an entity for funding a project or expansion, services of an Investment bank can be useful. They offer their proficiency in studying the client’s cash flow trends, which is used to formulate terms for loan payment and memorandum. Multiple banks and financial institutions join hands to form a syndicate for raising the required funds. An investment banker performs cash flow analysis, identifies potential banks and financial institutions, builds and documents memorandum and policy and mediates negotiations in order to make a loan syndication body successful.
  • Financing Foreign Currency: Investment Banks also indulges in importing capital goods and services in addition to export credits.
  • Underwriting: Underwriting the transaction of an issue placement, also falls upon an investment bank. By underwriting these issues they absorb the lurking risk of securities.

It’s impossible to disagree on the point that an investor strives to maximize his returns on investment, keeping risks at the farthest bay and to ensure it stays that way, it is recommended to lean on the experts of a, Category 1 Investment Bank like us recognized by SEBI. ResurgentIndia prides in its market recognition for abiding by SEBI guidelines, research and analysis, prowess in valuation, with a towering success rate adorning its crown

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