MEDI-CAPS INSTITUTE OF TECHNOLOGY AND MANAGEMENT (APPROVED BY AICTE, UNDER DAVV) INDORE (M.P.) 2009-2011 MAJOR RESEARCH PROJECT ON HOW INVESTMENT BANKS HELP TO CUSTOMER FOR RAISING FUNDS IN CAPITAL MARKETSubmitted By :-ANAND BOPCHE Guided By :-MBA 2 Yrs (2009-2011) Prof. S. GANGRADESpecialization - Finance MITM INDORE (M.P.) Submitted To MITM INDORE (M.P.) DAVV INDORE
CONTENT1.Title:2.Introduction:3. Review of literature and rational of study:4. Research methodology: * Objectives * Hypothesis *Sample *Data collection tool5. Analysis and interpretation of data:6. Suggestion and conclusion:7. Bibliography
1. TITLEHOW INVESTMENT BANKS HELP TO CUSTOMER FOR RAISING FUNDS IN CAPITAL MARKET
2. INTRODUCTIONAn investment bank is a financial institution that assists individuals,corporations and governments in raising capital by underwriting and/oracting as the clients agent in the issuance of securities. An investmentbank may also assist companies involved in mergers and acquisitions,and provides ancillary services such as market making, trading ofderivatives, fixed income instruments, foreign exchange, commodities,and equity securities. Unlike commercial banks and retail banks, investment banksdo not take deposits. From 1933 (Glass–Steagall Act) until 1999(Gramm–Leach–Bliley Act), the United States maintained a separationbetween investment banking and commercial banks. Otherindustrialized countries, including G8 countries, have historically notmaintained such a separation. Investment banking (corporate finance) is the traditionalaspect of investiment banks which also involves helping customers raisefunds in capital markets and giving advice on mergers and acquisitions(M&A). This may involve subscribing investors to a security issuance,coordinating with bidders, or negotiating with a merger target. Anotherterm for the investment banking division is corporate finance, and itsadvisory group is often termed mergers and acquisitions. A pitch bookof financial information is generated to market the bank to a potentialM&A client; if the pitch is successful, the bank arranges the deal for the
client. The investment banking division (IBD) is generally divided intoindustry coverage and product coverage groups. Industry coveragegroups focus on a specific industry, such as healthcare, industrials, ortechnology, and maintain relationships with corporations within theindustry to bring in business for a bank. Product coverage groups focuson financial products, such as mergers and acquisitions, leveragedfinance, project finance, asset finance and leasing, structured finance,restructuring.DAFINATION OF INVESTMENT BANKING :- “An investment bank is a financial institution that assistscorporations and governments in raising capital by underwriting andacting as the agent in the issuance of securities. An investment bankalso assists companies involved in mergers and acquisitions,divestitures, etc. ...” “ Businesses specializing in the formation of capital.This is done by outright purchase and sale of securities offered by theissuer, standby underwriting, or "best efforts selling." INDIAN INVESTMENT BANK 1. ICICI Securities Ltd Indias biggest equity house, ICICI Securities Ltd provide back-to-back banking solutions through its extensive distribution network to cater to the varied needs of its retail and corporate clients. The firm is listed under the Monetary Authority of Singapore (MAS) and Financial Services Authority, UK and has an authoritative place in the core divisions of its functional areas such as consultant services, fiscal good distribution, Equity Capital Markets Advisory Services, etc.
Contact Address ICICI Centre, H.T. Parekh Marg,Churchgate,Mumbai, MH - 400020 Phone: +91-22-882460/70 2. SBI Capital Markets SBICAPS is Indias foremost investment bank and project consultant, aiding local firms in capital enlistment endeavors for last many years. The firm started it operations in 1986 and is an entirely owned subordinate of the State Bank of India. Asian Development Bank (ADB) possesses 13.84% stakes in equity segment of SBICAPS. Contact Address 202, Maker Tower E Cuffe Parade Mumbai - 400005 Email: firstname.lastname@example.org Phone: +91-22-221783003. Review of literature and rational of study:-The importance of INVESTMANT BANKING are numerous. The companies arelaunching more and more investment banking to raise funds which are utilized forundertakings various projects including expansion plans. All types of companieswith the idea of enhancing growth launch investment banking to generate fundsto cater the requirements of capital for expansion, acquiring of capitalinstruments, undertaking new projects. Investment banking helps the company tocreate a public awareness about the company as these investment bankinggenerate publicity by inducing their products to various investors:The increase in the capital: -Liquidity: -
Valuation: -Increased wealth: -Low price:-4. Research methodology :- Objectives :-(1)How investment banks involves helping customers raise funds in capital markets. (2) What is the difference between two Indian investment bank. Hypothesis :-Ho: investment bank rating n grading are similar in Indian market.H1: investment bank rating n grading are not similar in Indian market. Type of Research : Data collection : Primary data : Sample Size : 50 Sample selection : Random sampling Data collection tools : Questionnaire Statistical tool Use : Method : Percentage Method, Pie Method, Bar Method.
5. ANALYSIS AND INTERPRETATION OF DATA 6. SUGGESTION AND 7. CONCLUSION 8. BIBLIOGRAPHY