IIM Nagpur

Investment Banking 2017

INVESTMENT BANKING COURSE OVERVIEW

BASED ON A STANDARD 20 SESSION COURSE

(SESSION DURATION 75 MINS.)

Background

This course offers an understanding of what is called ‘CORE INVESTMENT

BANKING’ which deals with the main activity profile and service basket of
investment banks.

Nature of the Course and Objectives

1. Core Investment banking involves transaction origination and structuring. It does not
deal with secondary markets, stock exchange administration, portfolio management, asset
management or trading strategies which are allied to investment banking business but do
not form part of it per se. This course is not meant for those interested in secondary
market operations such as stock trading, dealing and derivatives. Core
investment banking deals with Primary Markets and Corporate Advisory.

2. This is not a quantitative course using of mathematical and/ or statistical tools.

At the same time, it is not a theoretical course either. It will have a combination of
financial strategy, problems and cases. The project work will involve financial modelling.
Since i-banking is very regulated, study of regulatory and policy framework to a
minimum extent will be involved.

3. The course provides an understanding of the global paradigm of investment banking, the
policy and regulatory framework, business perspective and transactional approach to the
subject. It provides an in depth understanding of the intricacies and transactions in core
investment banking consisting of public offers in national and international capital
markets, buybacks and de-listings, private equity, corporate restructuring, mergers and
acquisitions.

4. The course will provide in-depth understanding of deal structuring, pricing, term sheets
and transaction processes involved in various transactions as well as associated service
aspects and regulations in the Indian market with related comparatives in US and UK
markets.

Prescribed Reading

Investment Banking – Concepts, Analyses and Cases - Pratap Giri S., McGraw Hill
Education, Third Edition 2017.

Additional PPT reading material may be provided by the instructor during the course as
may be found necessary.

CA & CS Pratap Giri S.

Adjunct Faculty, IIMB
IIM Nagpur
Investment Banking 2017
The end-term examination would be conducted under Open Book system. The end
term will have short questions, caselets and objective type questions.

Evaluation Criteria:
 Mid Term Quiz 15%
 Project Submission with Presentation – 50%
 End Term Examination 35%
(Mid term syllabus will not be repeated for End Term) ------
Total 100%

This course discussion and pedagogy should be designed so as to be analytical and

practice-oriented with problems and cases wherever applicable. A minimum level of
familiarity with financial concepts, financial statement analysis and corporate
valuation is essential. Those with flair for financial strategy and /or familiarity with
regulatory requirements in capital markets will find the course interesting. The
project assignment and end-term examination would be focussed on testing the
participants’ capability in financial strategy and analysis.

CA & CS Pratap Giri S.

Adjunct Faculty, IIMB
IIM Nagpur
Investment Banking 2017
INVESTMENT BANKING – CONCEPTS, ANALYSES AND CASES
THIRD EDITION, 2017

SESSION PLAN

No. of
Chapt Name Contents Sessions
er No.
Introduction to – Introduction to Financial Markets
1. Securities Markets – History, evolution and structure of Capital
Market, growth of capital markets, Premier 2
2. Capital Markets Stock Exchanges
and Regulation – Capital Market Segments, Constituents,
Regulatory Framework and Service
4. Secondary Markets Providers
and Systems – Introduction to ECM,DCM and Derivative
Segments in Secondary Market, Systems and
Regulation, Insider Trading
Evolution of – Introduction to Investment Banking, history
5. Investment and evolution, merchant banking
Banking – Glass Steagall Act, Later Developments,
Evolution of Universal Banks and Financial
Conglomerates 3
– The Investment Banking Crisis in 2008, Case
6. The Business of of Bear Sterns, Case of Lehman Brothers,
Investment Case of Barings Bank Collapse
Banking – Industry structure and business portfolio of
global and Indian investment banks
– Allied Businesses – Asset Management and
Securities Business
– Introduction to Primary Market, ECM, DCM
Primary Markets and Derivative Segments.
3. and Securities – ECM and DCM – profile, role players,
Issuances investment routes and investors.
– Financial concepts and Instruments, 1
discussion on equity and debt instruments,
instruments structures of Mahindra and
Mahindra ZCD issue in 1990, TISCO SPN issue
in 1992, Reliance Petroleum TOCD issue in 1993
– Primary market intermediaries and
regulatory overview of issuances
– Corporate Valuation – discussion on various
7. Investment approaches
Banking and – Income approach using DCF methodology,
Business Valuation relative valuation using multiples 1
– Special cases and additional dimensions in
valuation
– Judicial Review
– IPO – Listing Decision, FPO / Offer for Sale
Domestic Issue – Important provisions of SEBI Regulations

CA & CS Pratap Giri S.

Adjunct Faculty, IIMB
IIM Nagpur
Investment Banking 2017
8. Management and other statutory requirements for IPO / 2
FPO
– Issue Management and Process Overview 2
– Rights Offers
– Public Issue of Debt Securities
– Select Case Studies
– Underwriting – methodologies,
9. Underwriting – Underwriting Business Model
– Underwriting requirements in public offers 1
– US model - Indian model comparison
– International Listing, Overseas Capital
10. Global Capital Market Offerings
Market Offers – Bond Markets and Issues
– Equity Issues through Depository route 2
– Public Offers in US / UK – process flow.
– Comparative Models of India, US, UK
– Select Case Discussions
– Equity Repurchase – theory, mechanisms,
Buybacks and De- regulation, role of investment banks.
13.
listings – De-listings – theory, methodology, 3
regulations, role of investment banks
– Select Case Discussions
– Venture Capital and Private Equity, Private
11. Private Placements Placements, PIPEs and QIPs
– Valuation in Private Equity transactions 3
– Transaction processes in private equity in
12. Private Equity unlisted companies, PIPEs and QIPs
Advisory – Exit mechanisms
– Investment banking perspectives, role of
Investment Banker
Total no. of sessions 20

Instruction Methodology

Pre-reads instructions will be provided before every session. The participants are
expected to read through the relevant chapters / sections from the prescribed text to
familiarise themselves with the topics for discussion before attending the
proceedings in each session. Theoretical concepts from the book will not be
explained in the class as the focus will be more on analytical discussion. Class
participation is important.

This course is designed to be analytical and practice-oriented with problems and cases
wherever applicable. A minimum level of familiarity with financial concepts,
financial statement analysis and corporate valuation is essential. Those with flair for
financial strategy and /or familiarity with regulatory requirements in capital markets
will find the course interesting. Suitable inputs on global perspectives would also be
provided. The project assignment and end-term examination would be focussed on
testing the participants’ capability in financial strategy and analysis. The course load
would be reasonable and commensurate with the credits.
CA & CS Pratap Giri S.
Adjunct Faculty, IIMB