An investment banker is a person who works for a financial institution and helps investors raise capital from companies, government and other entities. Investment bankers help their clients raise money in capital market by issuing debt or selling equity in the companies. Other duties of investment bankers include assisting clients with mergers and acquisitions (M&A) and advising on unique investment opportunities like derivatives.
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There are various types of jobs that are offered by the investment firms. These jobs are not only taken by people with finance background, but from all sorts of academic background like sales, executives and so on.
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Listed below are some of the most successful investment bankers in India:
An investment banker performs the following functions:
The investment bankers perform various functions with an investment firm. They help clients raise money in capital market by issuing debt and selling equity in the company. Their roles include offering companies sound financial advice and strategies during mergers and acquisitions. Investment bankers act as “financial brokers” and “financial advisors”. Investment Bankers help companies raise capital for projects, expansion and companies may look at various channels like Initial Public Offerings (IPOs), Follow-on Public Offering (FPO), Private Placements and so on.
Core investment banking activities:
Listed below is a full range of activities carried out by the investment bankers:
Merger and acquisition advisory: Companies are always on the lookout to expand business to further growth and generate more revenue. The companies merge or acquire other companies for expansion. The role of the investment banks is to guide these companies in making the right decisions and finalizing right deals so that the company faces minimum loss.
Management of capital issues: in India management of public issues are done by following two methods. They are fixed price method and book building method. These investment banks also offer initial public offering; follow on public offer, preferential issues, qualified institutional placement and debt placement. They offer ideas and strategies to the big organizations and companies and analyze the market trends to help expand operations.
Debt syndication: investment firms also help companies with additional funds to carry out functions properly during acquisitions. The investment banks helps in organizing funds like term loan, working capital loan, mezzanine financing, external commercial borrowing and so on. The investment banks help both public and private companies fund their projects.
Buyback/ takeovers: Investment banks in India also advise clients to buy back shares from the market at the right time. Moreover, they also help them do their due diligence, find out the target company, and facilitate understanding whether the takeovers are necessary. They also help the companies adhere to compliances and regulations as per SEBI.
Corporate Advisory: in India investment bankers offer corporate advisory services to big companies and corporate bodies. The corporate advisory services include business appraisals, providing strategic project advisory; provide companies with business valuation, project identification and corporate restructuring.
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