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Merchant Banking

Merchant Banking. A set of financial institutions that are engaged in providing specialist services, which generally include the acceptance of bills of exchange, corporate finance, portfolio management & other banking services. Corporate Counseling.

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Merchant Banking

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  1. Merchant Banking • A set of financial institutions that are engaged in providing specialist services, which generally include the acceptance of bills of exchange, corporate finance, portfolio management & other banking services.

  2. Corporate Counseling • A set of activities that is undertaken to ensure efficient running of a corporate enterprise. • Act as a managerial guide • Act as a financial & investment expert.

  3. Project counseling • General review of project ideas & providing advice on procedural aspects • Review of technical feasibility • Assisting in preparing project reports & obtaining approvals • Identification of potential investment avenues • Arranging & negotiating foreign collaborations, mergers & takeovers

  4. Pre-investment studies • A detailed feasibility exploration to evaluate alternative avenues of capital investment in terms of growth & profit prospects • In depth investigation of environment and regulatory factors, location of raw material supplies, demand projections & financial requirements of a project.

  5. Capital Restructuring Services • Analyzing the capital structure ratios, asset restructuring ratio & the debt service coverage ratio. • Suggesting the ideal capital restructuring for sick units. • May cover mergers & takeovers, involving modernization or diversification of the existing production systems.

  6. Credit Syndication • Activities connected with credit procurement & project financing, aimed at raising Indian & Foreign Currency loans from banks & financial institutions. • Estimating the total cost, Drawing up financial plan conforming the requirements of the promoters, financial institutions & banks, government agencies & underwriters.

  7. Credit Syndication • Preparing Loan Application for financial assistance from FI’s/Banks/Lenders • Assisting in completion of formalities for drawing of finance sanctioned by institutions by expediting legal documentation formalities • Assisting working capital requirements.

  8. Issue Management & Underwriting • Preparation of an action plan • Preparation of the budget for the total expenses for the issue • Drafting prospectus • Selection of institutional & broker underwriters • Selection of issue houses & advertising agencies

  9. Issue Management & Underwriting • Approval of institutional underwriters & stock exchanges for publication of prospectus • Co-ordination with the underwriters, brokers and bankers to the issue • Providing advice on the design of a sound capital structure.

  10. Portfolio Management • Right Choice of investment • Advice on selection of investment • Critical evaluation of investment portfolio • Collecting & remitting interest & dividend on investment • Tax counseling & filing tax returns through tax consultants

  11. Working capital finance • Assessing working capital requirements • Preparing necessary application for negotiation for the sanction of credit • Coordinating & expediting documentation & other formalities • Advising on issue of debentures for long term working capital requirements.

  12. Mergers & Acquisition • Audit to identify areas of corporate strength and weaknesses to formulate guidelines & actions • To locate overseas markets, foreign collaborations & joint venture • Obtaining approvals from shareholders, creditors, depositors, govt.

  13. Organizations offering MB Services • Commercial Banks: SBI (SBICAP), Canbank Financial Services Ltd. (Canfina), and Bank of Baroda Fiscal Services Ltd. (BOB Fiscal) • All India Financial Institutions: ICICI, IFC & IDBI.

  14. Organizations offering MB Services • Private Consultancy Firms: DSP Financial Consultants, Credit Capital Finance Corporation Ltd., J M Financial Services Ltd. • Technical Consultancy Organizations: Set-up with the initiative of all-India financial institutions. Providing services to medium & small-sized units.

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