Investment Banking

Program : MBA Class of : 2011

Credit : 3 Sessions : 33
Course Code : SL BK 610

Objective
To familiarize students with the services offered by modern investment bankers.

REFERENCE BOOKS AUTHOR / PUBLICATION

Investment Banking & Financial Services ICFAI
A Manual of Merchant Banking J C Verma – Bharat Law House
SEBI Guidelines Nabhi Publications
Capital Market Management V A Avadhani – Himalaya Publishing House
Financial Institutions and market L M Bhole – Tata McGraw Hill
Primary Market & IPO ICFAI Publication
Economic Times Market Watch ICFAI Publication

Detailed Syllabus
Introduction to Investment Banking: Evolution of Investment banking in India, Scope, management of debt and
equity, corporate advisory services, project advisory services, loan syndication, venture financing, private equity,
M&A, financial engineering, structural analysis of investment banking industry
Financial Markets: Government Securities Market, Primary & Secondary market for G.sec, Call money market:
Money Market, Treasury Bill Market, Commercial Paper and Certificate of Deposits, Discount and Finance House
of India, Corporate Debt market Recent Developments.
Merchant Banking: Nature and scope of Merchant Banking - Regulation of Merchant Banking Activity - Overview
of Current Indian Merchant Banking Scene - Structure of Merchant Banking Industry - Primary Markets in India and
Abroad - Professional Ethics and Code of Conduct - Current Development, Procedural Aspects of Primary Issues -
Pre- Issues Decision Making - SEBI Guidelines for Public Issues – IPO -Pricing and Timing of Public Issues - Pre-
Issue Management – Regulatory aspects -Advertising and Marketing, Post-Issue Management - Rights Issues
Raising finance from international markets – Intermediaries, euro-dollar market, Instrument-ADR/GDR, FCCB,
ECB-Regulatory aspects
Corporate Restructuring –Economic rationale of corporate restructuring, Debt restructuring, expansion, tender
offers, sell offs, spin offs, divestiture, M&A - legal aspects and accounting aspects
Corporate Valuation –Principles of valuation, capital budgeting as a model for firm valuation, FCFE basis fro
valuation, increasing the value of organization
Financial engineering – Structural financial products, Risk in financial engineering, Innovative financial
instruments –investor-regulator –Issuer points of view
Financial Bubbles, Scams and crisis reasons and consequences of financial crisis and scams
Current developments
Cases
Faculty will identify appropriate cases
 Suggested Schedule of Sessions

Topic No. of Sessions

Introduction to Investment Banking 4
Financial Markets 3
Merchant Banking 5
Raising finance from International markets 3
Corporate restructuring 5
Corporate valuation 5
Financial Engineering 4
Financial bubbles, scams and crisis 2
Current developments and cases 2
Total 33