7/25/2019 Blackbook Project on Merchant Banking 1 (1)
1/58
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
2/58
MERCHANT BANKING
Bachelor of Commerce
Banking & Insurance
emes!er "
#Aca$emic %ear '()(*'())+
u,mi!!e$ B-
HEBT.//AH KA0A1IA
ea! No
2AI HIN1 C3//EGE
4A5 Roa$6 Churchga!e6 Mum,ai*7(( ('(
)80 a ge
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
3/58
MERCHANT BANKING
BACHE/3R 39 C3MMERCE
BANKING & IN.RANCE
EMETER :
.BMITTE1 B%
HEBT.//AH KA0A1IA
EAT N3;
2AI HIN1 C3//EGE
4A5 R3A16 CH.RCHGATE6 M.MBAI*7(( ('(
'80 a ge
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
4/58
1EC/ARATI3N
I6 HEBT.//AH KA0A1IA6 s!u$en! of B;Com; Banking & Insuranceemes!er : #'()(*))+ here,- $eclare !ha! I ha"e com
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
5/58
MERCHANT BANKING
BACHE/3R 39 C3MMERCE
BANKING & IN.RANCE
EMETER :
.BMITTE1
IN 0ARTIA/ 9./9I//MENT 39 THE
[email protected] 93R THE AAR1 39 1EGREE 39
BACHE/3R 39 C3MMERCE
BANKING & IN.RANCE
B%
HEBT.//AH KA0A1IA
EAT N3
2AI HIN1 C3//EGE
4A5 Roa$6 Churchga!e6 Mum,ai*7(( ('(;
780 a ge
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
6/58
2AI HIN1 C3//EGE
4A5 Roa$6 Churchga!e6 Mum,ai*7(( ('(;
CERTI9ICATE
This is !o cer!if- !ha! Mr; HEBT.//AH KA0A1IA of B;Com;Banking & Insurance emes!er : #'()(*))+ has successfull- com
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
7/58
ACKN3/E1GEMENT
I o>e a grea! man- !hanks !o a grea! man- ell >ishers;
80 a ge
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
8/58
IN1EF
r; ;
'?7D
)(
)))')?)7
)D))))'(')
EFEC.TI:E .MMAR%INTR31.CTI3NHIT3R% 39 MERCHANT ANKINGTRA1ATI3NA/ MERCHANT ANKINGM31ERN MERCHANT ANKINGMAIN 3B2ECTI:E 39 MERCHANT BANKERC30E 93R GR3TH 39 MERCHANTBANKING IN IN1IAMERCHANT BANKING IN IN1IA1E:E/30MENT IN MERCHANT BANKINGETAB/IHMENT IN IN1IAR3/E 39 MERCHANT [email protected] 93R ETTING .0 AMERCHANT BANKING 3.T9ITG.I1E/INE 39 EBIIN:ETMENT BANK :J MERCHANT BANKMERCHANT BANK :J C3MMERCIA/ BANK9.NCTI3N 39 MERCHANT BANKER0R3B/EM 39 MERCHANT BANKINGCAE T.1IEANA/%I AN1 INTER0RETATI3N
C3NC/.I3NBIB/I3GRA0H%ANNEF.RE @.ETI3NAIRE
0AGENo;
)'?D
)'
)7)
)')'?'?
'7?(?'?
777
80 a ge
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
9/58
EFEC.TI:E .MMAR%
Merchan! Banking is an imhich >ere in nee$ of non*fun$ ,ase$ income soas !o im
of !hese ues!ions an$ also !o sugges! reme$ial measures >here"er
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
10/58
INTR31.CTI3N
3riginal 1efini!ion A Merchan! Bank is a Bri!ish !erm for a ,ank
a$"ice on acuisi!ions6 mergers6 foreign echange6 un$er>ri!ing ne> issues6 an$
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
11/58
HIT3R% 39 MERCHANT BANKING
In la!e )!h an$ earl- )!h cen!ur- Euroas
merchan! a$"en!urers; ui!h official righ!s !o lucra!i"e
!ra$ing ac!i"i!ies in In$ia; This comas !he forerunner in $e"elon =e>el of !he English Emas s!ar!e$ ,- >ha! >e
>oul$ !o$a- call merchan! ,ankers6 ,ecause of !he firms in"ol"emen! in financing6
nego!ia!ing6 an$ imha! are no> In$onesia !he 9rench an$ 0or!uguese
ac!e$ similarl- in !heir res
merchan!s; As !he /om,ar$- merchan!s an$ ,ankers gre> in s!a!ure on !he ,ack of
!he /om,ar$
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
12/58
The 2e>s coul$ no! hol$ lan$ in I!al-6 so !he- en!ere$ !he grea! !ra$ing ish ne>comers6 on !he
o!her han$6 coul$ len$ !o farmers agains! croha!
>oul$ ha"e ,een consi$ere$ usurious ra!es ,- !he Church6 ,u! $i$ no! ,in$ !he
2e>s; In !his >a- !he- coul$ secure !he grain sale righ!s agains! !he e"en!ual
har"es!; The- !hen ,egan !o a$"ance agains! !he $eli"er- of grain shi
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
13/58
TRA1ATI3NA/ MERCHANT BANKING
Merchan! Banking6 as !he !erm has e"ol"e$ in Euroas $irec!e$ !o>ar$s a commo$i!- !ra$erJcargo o>ner >ho >as in"ol"e$ in !he
,u-ing6 selling6 an$ shi
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
14/58
M31ERN MERCHANT BANKING
1uring !he '(!h cen!ur-6 ho>e"er6 Euro
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
15/58
0rofessional merchan! ,ankers mus! ha"e
)+ An un$ers!an$ing of !he
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
16/58
MAIN 3B2ECTI:E 39 MERCHANT BANKER
Merchan! ,ankers ren$er !heir shich are
- To carr- on !he ,usiness of merchan! ,anking6 assis! in !he caful >a-s in
comi!h !he rele"an! la>s of In$ia;
- The- >ill in"es! in ,u-ing an$ selling of !ransfers6 h-i!h $is
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
17/58
C30E 93R GR3TH 39 MERCHANT BANKING IN IN1IA
As ell In$ia ca
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
18/58
Changing !he len$ing
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
19/58
THE 9ACT3R 3N HICH GR3TH 39 MERCHANT BANKING
1E0EN1
0lanning an$ in$us!rial
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
20/58
MERCHANT BANKING IN IN1IA
In In$ia Merchan! Banking ac!i"i!ies s!ar!e$ from !he -ear )6 follo>ing !he
foo!s!e
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
21/58
Grin$la-s Banks )
Ci!i ,anks )(
BI )?
ICICI )7
Merchan! ,anking in In$ia * an o"er"ie>
Com
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
22/58
1E:E/30MENT IN MERCHANT BANKING ETAB/IHMENT IN IN1IA
e!!ing u< of ,anks u,si$iaries
In or$er !o mee! !he gro>ing $eman$ for ,roa$*,ase$ finacial ser"ices from !hecori!h
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
23/58
1iscoun! & 9inance House of In$ia#19HI+
19HI >as incor
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
24/58
R3/E 39 MERCHANT BANKER
The role of merchan! ,anker is $-namic in !he >ake of $i"erse na!ure of
merchan! ,anking ser"ices; Merchan! ,anker5s $-namism lies in areas so as !o eui< himself >i!h !hekno>le$ge an$ !echniues !o $eal >i!h emerging ne>
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
25/58
[email protected] 93R ETTING .0 A MERCHANT BANKING 3.T9IT
); 9orma!ion of !he Business 3rganiPa!ion*
EBI ac!6 )' $oes no! All !he ,asic !es!s reuire$ !o fin$ ou! >he!her !he ,usiness !o ,e un$er!aken is"ia,le or no! are also a
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
26/58
Ca!egor- I6 !ha! is
#i+ To carr- on an- ac!i"i!- of !he issue managemen!6 >hich >ill in!er*alia consis!
of ri!er6
ri!er6 a$"iser6 consul!an! !o an issue
Ca!egor- I:6 !ha! is !o ac! onl- as a$"iser or consul!an! !o an issue;
To carr- on !he ac!i"i!- as un$er>ri!er or
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
27/58
- The a
- The a
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
28/58
- The a or ,usiness managemen!
- Gran! of cer!ifica!e !o !he a
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
29/58
G.I1E/INE 39 EBI
Af!er !he o,liga!ions of !he CCI6 !he as occu
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
30/58
The Com
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
31/58
IN:ETMENT BANK :J MERCHANT BANK
IN:ETMENT BANKING
Bo!h fee*,ase$ an$ fun$*,ase$;Commi! !heir o>n fun$s;
MERCHANT BANKING
0urel- fee*,ase$;
Imi!h 1e,! & 1e,! rela!e$ finance;Asse! orien!e$;
Generall- a"oi$ risks;
MERCHANT BANKING
1eals >i!h Eui!- & Eui!- rela!e$ finance;Managemen! orien!e$;
illing !o acce
?( 8 0 a g e
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
32/58
9.NCTI3N 39 MERCHANT BANKER
Consul!ing a$"ice on going i!h a com
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
33/58
o Cor
o Cre$i! -n$ica!ion
Merchan! ,ankers arrange !o !ie u< loans for !heir clien!s; This !akes ings can ,e $efine$; Then !he merchan! ,anker
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
34/58
Af!er !aking ac!ion as i!h comri!er !ha! in !he e"en! of un$ersu,scriri!!en >oul$ ,e su,scri,e$ ,- him;
BanksJMerchan! ,anking su,si$iaries canno! un$er>ri!e more !han )D of an-
issue;
o Bankers !o !he Issue
The merchan! ,anker can au!oma!icall- ,ecome !he ,anker !o !he issue in !he
follo>ing cases
The ,ank is a ,roker !o !he comi!h minimum risk;
?? 8 0 a g e
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
35/58
o A$"isor- er"ices Rela!ing To Mergers an$ Takeo"ers
A merger is $efine$ as a com,ina!ion of !>o or more comhich is !he
>ill s!ar! for a merger
>ill selec! a non*rela!e$ com
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
36/58
o :en!ure Cahen !he shares are lis!e$;
o /easing
Is !here ano!her lucra!i"e area of financing >here merchan! ,ankers are !urningL
/easing is a "ia,le source of financing >hile acuiring ca
!he
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
37/58
o Arranging 3ffshore 9inance
The merchan! ,ankers hel< !heir clien!s in !he follo>ing areas in"ol"ing foreigncurrenc-;
#a+ /ong !erm foreign currenc- loans #,+ 2oin! :en!ures a,roa$
#c+ 9inancing es
Assessmen! of cahere !he reha,ili!a!ion
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
38/58
0R3B/EM 39 MERCHANT BANKING
Res!ric!ion of merchan! ,anking ac!i"i!ies
EBI gui$elines ha"e au!horiPe$ merchan! ,ankers !o un$er!ake issue
rela!e$ ac!i"i!ies an$ ma$e !hem res!ric! !heir ac!i"i!ies or !hink of
seor!h of Rs;) crore
EBI gui$elines s!ior!h of Rs;) crore for
au!horiPa!ion of merchan! ,ankers;
Non co*o
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
39/58
Merchan! Banker5s Commission
Maimum * (;D
0ro=ec! a
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
40/58
CAE T.1IE
BI Merchan! Banking Grou< is s!rongl- i!hin In$ia6 >here i! also o>ns ma=ori!- s!akes in se"en associa!e ,anks;
!a!e Bank of In$ia has more !han D( offices in nearl- ?D o!her coun!ries6 inclu$ing
mul!ins a,ou! ( of
!a!e Bank of In$ia;
BI ,eing an In$ian en!i!- has no In$ia e
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
41/58
3.R 0R31.CT AN1 ER:ICE
Arranging E!ernal Commercial Borro>ings #ECB+
Arranging an$ orl$*class in"es!men! ,anking ser"ices;
3ur :ision * To ,e !he ,es! In$ia ,ase$ In"es!men! Bank;
7( 8 0 a g e
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
42/58
BI Grou
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
43/58
0romo!ers5 hare * 0erformance*
ER:ICE5*
0ro=ec! A$"isor- & !ruc!ure$ 9inance
BICA0 has ,uil! a formi$a,le
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
44/58
Ca
The M & A
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
45/58
ANA/%I AN1 INTER0RETATI3N
@ ) 1o -ou !ake an- financial ser"ices from ,ankL
r;No;
)
'
Take 9inancialer"ice
%es
No
To!al
Nos;
?
77
(
0ercen!age
7D
DD
GRA0H
Take 9inancial er"ice
7D
) %es
' No
DD
In!er
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
46/58
@ ' 1o -ou kno> a,ou! Merchan! BankingL
r;
No;
)
'
Kno> a,ou!
Merchan!
%es
No
To!al
Nos;
?'
7
(
0ercen!age
7(
(
Kno> a,ou! Me chan!
' o6 (
D(
7(
?(
'(
)(
) e 6 7(
)e
'o
In!er
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
47/58
@ ? Are -ou sa!isfie$ >i!h !he ser"ices
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
48/58
@7 Are -ou sa!isfie$ >i!h ser"ices offere$ ,- ,anksL
r; no
)
'
?
7
D
Bank
ICICI
BI
0NB
B3I
3!her
0ercen!age
'(
?D
'(
)D
)(
In!er
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
49/58
@ D ha! is !he
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
50/58
@ ha! is !he
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
51/58
@ ha! !-
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
52/58
@ Are -ou sa!isfie$ ,- ecuri!- margin of ,ankL
r;No; a!isfac!ion ,- ecuri!-
Margin
);
';
%es
No
To!al
7
)
(
(
'(
)((
Nos; 0ercen!age
(
(
D(
7(%es
(
'(
)(
(
%es
In!er
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
53/58
@ Are -ou sa!isfie$ >i!h !imel- ser"ices
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
54/58
@)( ill i! $iffer from in"es!men! ,anksL
r;
No;
)
'
1ifference
%es
No
To!al
Nos;
(
'(
(
0ercen!age
D
'D
)((
(
D(
7(
(
'(
)(
(
%es No
%esNo
In!er
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
55/58
C3NC/.I3N
The merchan! ,anker i!5s going !o ge! emerge$ in !he In$ian
econom-; Hence6 Merchan! Banking can ,e consi$ere$ as essen!ial financial ,o$-in In$ian financial s-s!em;
Marke! $e"eloing a>areness an$
in!eres! in!o an essen!ial6 !o remo"e !he !ra$ing mal
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
56/58
BIB/I3GRA0H%
0rimar- ources
BI CA0ITA/ MARKET /IMITE1* Chief -n$ica!e$ /oan Manager*Mr; Ami! Banso$
econ$ar- ources
- Books
); Merchan! Banking in In$ia* K C Gu
'; Merchan! Banking In In$ia E"olu!ion An$ Emergence6 9unc!ions6 Rules An$ Regula!ions6 E>>;google;comJne>s'; >>>;ans>er;com
?; >>>;emissar-ca>>;>iki>>;se,i;go";in
; h!!>;asiala>;comJAr!icleJ)(JMerchan!*Banking;h!ml
; h!!>>;icicisecuri!ies;com; h!!>>;s,ica>;,o,ca>;
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
57/58
@ues!ionnaire
Res
7/25/2019 Blackbook Project on Merchant Banking 1 (1)
58/58
D; ha! is !he