Executive Masters Programs in Business Administration

Course Code: 152617

Course Title: Investment Banking (0117-V2)
Trimester: 6 Batch MBA-9 Finance Prof.Vipul Parmar

Session 1 : Investment Banking: What is Investment Banking ? Merchant Banking vs Investment Banking;
Commercial Banking vs Investment Banking; History of Investment Banking; Glass-Steagall Act; Graham- Leach Act;
Who needs an Investment Bank; Role of Investment Bank; Types of Services offered by Investment Bank;
Organisational Structure of an Investment bank; Gaining competitive advantage in Investment bank; Estimating
Customer potential; The Evolution & stages of the Global Financial crisis. Evolution of Investment Banking in India;
List of Top Investment Banking firms in India and abroad. SWOT Analysis. Capital Adequacy norms.

Session 2: Initial Public Offerings (IPO’s): Economic Conditions and IPO declaration; Why do Companies offer
IPO; Benefits & Significance of an IPO; Role of an Under-writer; How to choose an under-writer; Types of IPO’s;
Bond offerings; The IPO Process; Key Terms related to IPO Process; IPO Price Discovery Mechanism; Fixed price
Method; Book-Building Method; Dutch Auction Method; Pre-requisites for IPO Issue; Pricing Issues of an IPO;
Selection of an Exchange; BSE Requirements; Eligibility criteria for Primary issue; SEBI Guidelines for issuing IPO;
Indian IPO Market; Effects of Recession on IPO Market; IPO Improvements required; IPO Grading; Some Case
examples of IPO.

Session 3: Venture Capital: Introduction What is Venture Capital? Importance of Venture Capital; Who invests in
Venture Capital? Steps in the Venture Capital Investment Process; Venture Capitalists Staged Investment; Key success
factors and advantages of VC’s; What do VC’s look for ?Types of VC’s; Venture Capital in India; Do Venture Capital
influence the Economy? Growth drivers of VC in India; Taxation of FVCI; International Scenario Present Indian
Scenario: Issues & Challenges; Benefits and Problems of Corporate Venture Funds; Problems with VC’s in the Indian
Context; Pricing of Venture Capital Investments; Venture Capital Valuation; Venture Capital Cases.

Session 4: Private Equity (PE): Origin of PE; What is PE; Need for Private Equity; Comparison of PE with Alternate
Sources of Financing; Investment features of PE; Industry overview of PE in India; Top PE Deals & Top PE Sector
Insights; Growth Drivers of PE Investment in India; Emerging Challenges & Problems of PE; PE Valuation
Methodologies; Leveraged Buyout (LBO): What does LBO Mean? What is MBO/MBI/IBO; Secondary Buyouts; Pros
& Cons of LBO; Failures of LBO’s Case Review; Mezzanine Financing; What is Mezzanine Financing? Mezzanine
Financing Structure, Terms & Pricing; Returns from Mezzanine Financing; Securing Mezzanine Capital.

Session 5: Structured Finance: What are structured Products? What is Structured Finance; What are Collateralized
Debt Obligations (CDO’s) ? Types of CDO’s Introduction to Mortgage; What is Mortgaged backed Securities ?
Features of MBS; Types of MBS; Collateralized Mortgage Obligations; Benefits of MBS; Risk attached with MBS;
Techniques for Valuing MBS; Special-Purpose Vehicle; Sub-Prime Crises; Evolution of Indian Structured Finance.
Rise & Fall of Structured Finance Market.

Session 6 : Loan Syndication: What is Loan Syndication ? History; Issues involved; Loan Syndication Process;
Structure of Fees in Syndicated Loan; US Syndicated Loan Market; Loan Syndication in India; Hedge Funds:
Introduction; What is a Hedge Fund? Hedge Funds - Comparison to Other Pooled Funds; Hedging Strategies; Why
Invest in Hedge Funds? Structure; Principles of Hedging; Regulation of Hedge Funds; Hedge Fund in International
Scenario; Problems.

Session 7: Presentation / Assignment

Author Name: Naliniprava Tripathy, Himalaya Publishing House, 1st Edition 2012

Note: Each Session Is of 3 hours Duration