Top 12 Functions Performed by Merchant Banking Firm
May 02, 2020
Merchant Banking is a financial union, merger and sale agencies, and a range of marketing, promotional and innovative issues, as well as advisory services, the recruitment of businesses, and business finance for large corporations, high net wealth persons, and global multinationals around the globe. Merchant banks deal primarily with small businesses or start-ups that consider it challenging to collect funds.
Any individual who is engaged in issue management either by arranging for securities to be bought, sold, or subscribed or serving as a consultant, counselor, or corporate advisor in support of this problem management is a merchant banker. Merchant Banker is indulged in business in the fields of issues management through trade arrangements or the subscription of shares, or the position of manager/consultant, or the provision of consulting services.
Functions Performed by Merchant Bankers
- Raising finance: Merchant bankers support their customers to collect funding through debenture issuances, stocks, bank loans, etc. Both domestic and foreign markets are filmed. The funds generated by this strategy increasing be used to launch a new project or company, or also to extend and modernize the current enterprise.
- Promotional activities: Merchant bankers perform the role of industrial business promoters. They allow developers to create innovations, define ventures, produce feasibility studies, receive permits from public bodies, and opportunities. At times, merchant bankers may also assist with political, technological, and joint projects.
- Brokers in stock exchanges: On behalf of the consumers, they purchase and sell stock in the stock market. They often carry out surveys of equities, remind consumers of the share to be purchased, the date of purchasing, the amount of such acquisition, and the period that these shares will be exchanged.
- Project management: In the project management cycle, they assist consumers in a variety of areas. They guide the position of the plant, the writing of the plant study, feasibility reports, and the project finance preparation, sources of support, policy benefits, and concessions.
- Advice on modernization and expansion: Advice on amalgamation, mergers, partnerships, partnerships, international alliances, market diversification, up-gradation of technologies, joint ventures, etc.
- Managing public issue: They serve as consultants on the terminology, form, and timing of corporate securities issues and helps them to be tailored to customers and provides the issuing companies with transparency and versatility.
- Credit syndication: They offer professional services during project planning, loan applications required to collect short- and long-term credit from various institutions and companies, etc.
- Handling government consent for industrial projects: They complete all formalities for their client and allow the government to extend and modernize their businesses and launch new companies
- Special assistance to entrepreneurs and small companies: They offer guidance and resources for market prospects for start-ups and small businesses, discounts, grants, and government policy, and help them make the best of this opportunity open to them.
- The revival of sick units: They help to restore disabled manufacturing units. They meet with various long-term financing institutions and the Industrial and Financial Restoration Council.
- Portfolio management of sick units: They give guidance on investment choices to customers, typically institutional investors. They purchase and sell shares and offer fund investment services and them.
- Corporate restructuring: They help mergers acquisitions, selling and disinvestment comprise them. Such protocols include careful discussions, detailed planning, and delivery of various documentation and lengthy legal formalities.
For help or issues related to Merchant Banking Services in Mumbai, reach out to Resurgent India, which is a growing Investment Bank and registered SEBI Category I Merchant Bank. The company offers various services such as Private Equity, Transaction Advisory, Structured Finance, Mergers & Acquisitions, Valuations, Debt Solutions, Capital Market Solutions, Enterprise Risk and Tax Services, and Training across different cities in India.