PRATHMESH KELUSKAR - 13

8/3/2019 PRATHMESH KELUSKAR - 13

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T.Y B&I [Type text] INVESTMENT BANKING

1

M.K.M.P COLLEGE OF

SCIENCE AND COMMERCE

THAKURLI (EAST)

PROJECT REPORT ON

STUDY OF INVESTMENT BANKING

PROJECT REPORT SUBMITED IN PARTIAL FULFILLMENT

OF REQUIREMENT FOR THE DEGREE OF

B.COM (BANKING & INSURANCE)

UNIVERSITY OF MUMBAI

SUBMITED BY

PRATHMESH .D. KELUSKAR. (13)

(T.Y B.COM BANKING & INSURANCE)

(SEMESTER-V)

UNDER THE GUIDENCE OF

PROF.MRS. SHILPA MAM

PROF.MISS. POOJA MAM

ACADEMIC YEAR

(2011-2012)


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INDEX

Design of the study................................................................................

Meaning of bank................................

Definition of bank...........................................

Executive Summary

Research Methodology..

Objectives of the Study...

Chapter 1. Outline of InvestmentBanking.....Introduction .

Definition .

Origin of Investment Banking......

Chapter 2. Investment BankingIndustry....Players of Market.....

Functions of Investment Bank..

The Main Activities & Units........Qualities required for Investment Banker.....

Chapter 3. Mergers&Acquisitions...Mergers & Alliance.

Chapter 4. Services Provided by InvestmentBank.......

What do Investment Banks do?.............................Services Provided by Investment Banks........

Investment Strategies....

Institutional Equities Securities..

One Stop Consulting.

Real Estate Investment Banks.


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Chapter 5. MerchantBanking..History ......

Modern Practices....

Role of Merchant Banker in Primary Market.......

Chapter 6. Outsourcing Of InvestmentBank....

Chapter 7. Investment Banking inIndia........

Chapter 8. Top InvestmentBanks....Outside India.

In India..

Chapter 9. Casestudy..

Conclusion.......

Bibliography

.


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MEANING OF BANK:-A bank is the place where they accept deposits from

people and lend loans and charge interest on them and performs agency

functions, and provide certain facilities like providing lockers facilities and

perform certain on the basis of its motive ...eg: IDBI BANK in India used to

provide financial facilities to industrial sector.. Actually meaning of bank is

not specifies in any regulation or act. In India, different people have different

type of meaning for bank. Normal salary earner knows means of bank that it is a

saving institution, for current account holder or businessman knows bank as a

financial institutions and many other. Bank is not for profit making, it creates

saving activity in salary earner.

DEFINITION OF BANK:-

"A bank is an institution, usually incorporated with power to issue

its promissory notes intended to circulate as money (known as bank notes); or to

receive the money of others on general deposit, to form a joint fund that shall be

used by the institution, for its own benefit, for one or more of the purposes of

making temporary loans and discounts; of dealing in notes, foreign and

domestic bills of exchange, coin, bullion, credits, and the remission of money;

or with both these powers, and with the privileges, in addition to these basic

powers, of receiving special deposits and making


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FUNCTION OF BANK

Banking Regulation Act of India, 1949 defines Banking as "accepting, for

the purpose of lending or investment of deposits of money from the public,

repayable on demand or otherwise and withdraw able by cheques, draft, order or

otherwise". Deriving from this definition and viewed solely from the point of

view of the customers, Banks essentially perform the following functions :

1. Accepting Deposits from public/others (Deposits)

2. Lending money to public (Loans)

3. Transferring money from one place to another (Remittances)

4. Credit Creation

5. Acting as trustees

6. Keeping valuables in safe custody

7. Investment Decisions and analysis

8. Government business.


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Design of the Study

Executive Summary

1. For Investment Banks the market today has never been so good. Stockmarkets are booming, the economy is on the rise, unheard amount ofmoney is being raised through IPOs.

2. Mergers & Acquisitions are the name of game today. Overall thepicture seems to be very bright. The Industry sets poise to stage onimpressive growth.

3. However other than the impressive growth, one area of concern in theInvestment Banking Industry has been the area of ethics.

4. It is high time things are looked into. Regardless of all these, InvestmentBanks have an important role to play.

5. The competition has never been so intense. Effective internal controlsystems & risk management practices, innovative knowledge,management techniques & a strong ethical culture are some of pre-requisites needed to survive today.

6. These fundamentals will enable Investment Banks to accept & exploit thechanges rather than be over helmed by them.


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Objective of the Study

y To get an overview of Investment Banking Industry.

y To analyze the growth of Investment Banking Industry

y To study the innovative concepts emerging in the InvestmentBanking Industry.

Research Methodology

In order to conduct the research an appropriate methodology became necessary.In this direction both primary as well as secondary data were attempted to becollected. The methodology is concentrated in the following area:

1. Method of collecting the data.2. Method of recording the collected data.3. Method of having the qualitative interpretation of the data.4. Method to make quantitative interpretation of the data.

Each step of methodology is explained in the following submission step bystep. The methodology foe collecting data with reference to the secondary datawastaken from the different published articles, books journals, & the relevantwebsites.The different libraries of the colleges, institutions were of great help.Other related information was collected through internet which proved to be ofa great use. The websites are mentioned in the bibliography at the last. The datacollected was then refined by making a qualitative as well as aquantitative analysis.


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Chapter. 1

Outline of Investment Banking

Introduction

Investment banks help companies and governments raise money by issuing and

selling securities in the capital markets (both equity and debt), as well as providing

advice on transactions such as mergers and acquisitions.

Until the late 1980s, the United States and Canada maintained a separation betweeninvestment banking and commercial banks.

A majority of investment banks offer strategic advisory services for mergers,

acquisitions, divestiture or other financial services for clients, such as the trading

of derivatives, fixed income, foreign exchange, commodity, and equity securities.

Dealing with the pension funds, mutual funds, hedge funds, and the investing

public who consume the products and services of the sell-side in order to maximizetheir return on investment constitutes the "buy side". Many firms have buy and sell

side components

Investment banking is a particular form of banking which finances capital

requirements of enterprises. Investment banking assists as it performs IPOs, private

placement and bond offerings, acts as broker and carries through mergers and

acquisitions.


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Definition

Investment banking is defined as,

An individual or institution which acts as an underwriter or agent for

corporations and municipalities issuing securities. Most also maintain

broker/dealer operations, maintain markets for previously issued securities, and

offer advisory services to investors. investment banks also have a large role in

facilitating mergers and acquisitions, private equity placements and corporate

restructuring. Unlike traditional banks, investment banks do not accept deposits

from and provide loans to individuals. also called investment banker.

Investment banking can also be defined as,

Division of banking encompassing business entities dealing withcreation of capital for other companies. In addition to acting as agents or

underwriters for companies in the process of issuing securities, investmentbanks also advise companies on matters related to the issue and placement of

stock.


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Origin of Investment Banking

American Banking Before World War I

In the early 1800s the financing of canals, railroads, and a few industriesin the United States depended heavily on imported capital, chiefly from Britain.Defaults in state securities in the 1840s for a time cut off the supply of foreigncapital and led to stronger efforts to tap the domestic capital market, which hadbeen confined to wealthy traders and ship owners in New York City andPhiladelphia. Investment banking received a further strong impetus during the

American Civil War (1861-1865) from the example of a syndicate of bankinghouses, led by the financier Jay Cooke. The syndicate sold a billion dollars'worth of government bonds to large numbers of individual investors through theuse of thousands of salesmen and an extensive advertising campaign. Thisventure marked the first mass securities-selling operation carried out in theUnited States.

After the Civil War, investment bankers concentrated on the sale ofrailroad bonds. Over-commitments in this field led to the panic of 1873, set offby the startling failure of Jay Cooke and Company. In the 1890s widespreadrailway defaults and receiverships occurred again. Some larger houses,including the firms of J. P. Morgan and of Kuhn, Loeb, played a major part in

huge mergers such as that of the U.S. Steel Corp. (1901) and the NorthernPacific and Great Northern railroads (1904). Morgan, in particular, favoredmonopolies to preserve business profits and investor confidence. This rancounter to the trust-busting program of Theodore Roosevelt who was U.S.president at the time.


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Chapter.2

Investment Banking Industry

Players of the market

The biggest investment banks include Goldman Sachs, Merrill Lynch, Morgan

Stanley, Credit Suisse First Boston, Citigroups Global Corporate Investment Bank,

JPMorgan Chase and Lehman Brothers, among others. Of course, the complete list of

I-banks is more extensive, but the firms listed above compete for the biggest dealsboth in the U.S. and worldwide. You have probably heard of many of these firms, and

perhaps have a Brokerage account with one of them. While brokers from these firms

cover every major city in the U.S., the headquarters of every one of these firms is in

New York City, the epicentre of the I-banking universe. It is important to realize that

investment banking and brokerage go hand-in-hand, but that brokers are one small

cog in the investment banking wheel. As we will cover in detail later, brokers sell

securities and manage the portfolios of retail (or individual) investors.


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Functions of Investment Banking:

1. The term "Investment Banking" is occasionally misconceived as investment inthe field of banking. Investment banking is actually a banking function, whichcommercial banks apply to help their clients acquire funds and generate wealththrough prudent investment of their resources.

2. In addition, investment bankers of commercial banks also offer advice tocompanies about business transactions they might engage in.

3. With the advice of investment bankers, an institution can generate funds in twodifferent ways. It may draw on public funds through the capital market byselling its stock.

4. Alternatively, it may seek out venture capitalists or private equity to becomestakeholders in the company.

5. Investment banking firms also engage in financial consulting and offer adviceto companies on how to handle acquisitions and mergers.

6. They also notify their client companies on when to make public offerings andhow best to manage the assets.

7. The function of mergers and acquisitions come under the corporate financefunction of an investment bank.

8. Investment banking help public and private corporations in issuing securities inthe primary market, guarantee by standby underwriting or best efforts sellingand foreign exchange management

9. Investment banking provides financial advice to investors and serves them byassisting in purchasing securities, managing financial assets and tradingsecurities.


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The Main Activities & Units

On behalf of the bank and its clients, the primary function of the bank is buyingand selling products. Banks undertake risk through proprietary trading, done bya special set of traders who do not interface with clients and through PrincipalRisk, risk undertaken by a trader after he buys or sells a product to a client anddoes not hedge his total exposure. Banks seek to maximize profitability for agiven amount of risk on their balance sheet. An investment bank is split into theso-called FrontOffice, Middle Office, and Back Office.

Front Office


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Investment banking is the traditional aspect of investment banks which

involves helping customers raise funds in the Capital Markets and

advising on mergers and acquisitions. These jobs tend to be extremely

competitive and difficult to land. The investment banking division (IBD)

is generally divided into industry coverage and product coverage groups.

Industry coverage groups focus on a specific industry such as healthcare,

industrials, or technology, and maintain relationships with corporations

within the industry to bring in business for a bank. Product coverage

groups focus on financial products, such as mergers and

acquisitions, leveraged finance, equity, and high-grade debt.

Investment management is the professional management of various

securities (shares, bonds, etc.) and other assets (e.g. real estate), to meet

specified investment goals for the benefit of the investors. . Investors may

be institutions (insurance companies, pension funds, corporations etc.) or

private investors (both directly via investment contracts and more

commonly via collective investment schemes eg. mutual funds).

Sales & Trading In the process of market making, traders will buy and

sell financial products with the goal of making an incremental amount of

money oneach trade.


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Structuring has been a relatively recent division as derivatives have come

into play, with highly technical and numerate employees working on creating

complex structured products which typically offer much greater margins and

returns than underlying cash securities. The necessity for numerical ability has

created jobs for physics and math Ph.D.s who act as quants.

Merchant banking is a private equity activity of investment banks.

Examples include Goldman Sachs Capital Partners and JPMorgan One Equity

Partners.

Middle Office


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Risk Management involves analyzing the market and credit risk that traders

are taking onto the balance sheet in conducting their daily trades, and setting

limits on the amount of capital that they are able to trade in order to prevent

'bad' trades having a detrimental effect to a desk overall. Another key Middle

Office role is to ensure that the above mentioned economic risks are captured

accurately. In recent years the risk of errors has become known as "operational

risk" and the assurance Middle Offices provide now includes measures to

address this risk. When this assurance is not in place, market and credit risk

analysis can be unreliable and open to deliberate manipulation.

Finance areas are responsible for an investment bank's capital management

and risk monitoring. By tracking and analyzing the capital flows of the firm, the

Finance division is the principal adviser to senior management on essential

Areas such as controlling the firm's global risk exposure and the profitability

And structure of the firm's various businesses. In the United States and United

Kingdom, a Financial Controller is a senior position, often reporting to the

Chief Financial Officer.

Compliance areas are responsible for an investment bank's daily operations'

compliance with FSA regulations and internal regulations. Often also

considered a back-office division.


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Back Office


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`Operations involve data-checking trades that have been conducted, ensuring

that they are not erroneous, and transacting the required transfers. While some

believe it provides the greatest job security with the bleakest career prospects of

the divisions within an investment bank, many have outsourced operations. It is

however a critical part of the bank that involves managing the financial

information of the bank and ensures efficient capital markets through the financial

reporting functions. In recent years due to increased competition in finance related

careers, college degrees are now mandatory at most Tier 1 investment banks. A

finance degree has proved significant in understanding the depth of the deals and

transactions that occur across all the divisions of the bank.

Technology refers to the IT department. Every major investment bank has

considerable amounts of in-house software, created by the Technology team, who

are also responsible for Computer and Telecommunications-based support.

Technology has changed considerably in the last few years as more sales and

trading desks are using electronic trading platforms. These platforms can serve as

auto-executed hedging to complex model driven algorithms.

An investment bank can also be split into private and public functions with a

Chinese wall which separates the two to prevent information from crossing. The

private areas of the bank deal with private insider information that may not be

publicly disclosed, while the public areas such as stock analysis deal with public


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Key Skill Area Requirement

People skills: High

Sales skills: Medium

Communication skills: High

Analytical skills: High

Ability to synthesize: High

Creative ability: High

Initiative: Medium

Work hours: 50-120/week

Qualities required in investment banker

Investment banks want employees with a combination of strong analytical and

Interpersonal skills. Some jobs lean more towards one skill set than another

(e.g. brokers need to be mainly sales people). A typical job of an equities

Analyst requires both analytic and interpersonal skills. The skills involved

include:

Hard Work Expected and Respected

Investment banking is a high work, high risk, high reward profession. When youstart your hours will typically be long but the work can be exciting. Be preparedfor moments of frustration where you are stretched too thin and moments ofexhiliration where everything clicks.


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Tough to Break In

It's relatively hard to break into investment banking. You need to be prepared topursue firms on your own after you have thoroughly prepared yourself.

Believe it or Not, Bankers Have Social ValueInvestment bankers are often the subject of social scorn in movies likeBonfire of the Vanities. Are investment bankers really greedynarcissistic scum? Some probably are. But keep in mind that they playa crucial social role of helping to direct capital to companies withgreat ideas that make people better off.

Communication and Completion Abilities KeyIn mid-career, your success usually will depend on your ability to communicate

with clients and get deals done. At this level it is also important to have a goodunderstanding of market trends, the political and macroeconomic environmentand deal mechanics.

Traders are Multi-Talented

It's hard to define what makes a good trader. A good understanding of themarket, quick reactions, analytical skills and the ability to bluff help. Read LiarsPoker by Michael Lewis to learn more about sales and trading.

Teamwork Crucial

A crucial success factor in investment banking is teamwork. Being able to pulltogether persons with large egos to get a presentation together for a client is achallenge and is likely to be rewarded highly.


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Chapter.3

Mergers & Acquisitions

Mergers & Acquisitions Department (M&A) is responsible for structuring andexecuting a wide range of complex domestic and international transactionsincluding acquisitions, divestitures, mergers, joint ventures, strategic alliances,corporate restructurings, shareholder relations, recapitalizations, spin-offs,exchange offers, leveraged buyouts and defenses against unsolicited takeoverattempts.

The department also establishes and maintains strategic dialogues withexisting and potential clients, provides financial advice and solutions tostrategic problems and assists clients in achieving short- and long-term strategicobjectives. The M&A group is oriented to provide the best solution for eachindividual client, and works closely with the Banking group and other product

group areas to best serve clients.

On the Buy side, we work closely with our clients in understanding their

growth requirements, developing their acquisition strategy, identifying potential

acquisition targets and assisting in negotiations with the target companies and in

transaction structuring and closure. Our services also include providing

merchant banking services for open offers for acquisition of shares from public

shareholders.

On the Sell side, we work with clients on divestitures, spin offs, and

strategic sales, where we assist them in identifying potential buyers, negotiating

with the buyers and in transaction structuring and closure.


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Chapter.4

Services Provided by Investment Banking

What Do Investment Banks Do?

In their book Doing Deals, Eccles and Crane define the function of an

investment bank as "mediating the flow of assets between issuers and

investors" (1988, chap. 2). In the pure investment banking or corporate finance

relationship, investment banks' fundamental purpose is to lower the frictions

involved in issuing new securities. These frictions arise because the two primary

parties to the transaction are generally geographically separate, have no or only

limited knowledge about the other party, and have opposing interests in the

precise terms of the transaction. For example, issuers prefer a higher price for

their securities while investors would prefer to buy the paper at a lower price.

Institutionally, however, banks do far more than aid in the issuance of

securities. Though issuance is an important corporate finance function, banks

also provide advice in mergers and acquisitions and aid in designing customized

securities to suit issuers' needs through structured finance. Banks generally have

extensive sales and trading operations across asset classes and frequently

operate money management operations on an agency basis for institutional

clients. For the purposes of this paper, it is important to note that large classes

of investment banks also have retail operations, providing brokerage services to

individual investors. Finally, banks may have proprietary or principal

operations, either in trading or merchant banking.


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Services Provided

Investment Bank provides one of the most extensive and flexible services,

through in-depth and authoritative intelligence on corporate transactions

worldwide and analyzing comprehensive information. It recognizes that the keychallenge for growing companies lies in its ability to attract investment,

technical expertise, and management know-how to drive the business forward.

It operate globally to secure the investment/ partners through joint ventures ,

mergers, partnerships, co-branding, outsourcing, franchises and collaborations.

It also delivers a fully integrated service across the spectrum of capital market

products. It has strengthened its ability to operate in the world's financial

markets on behalf of corporations, institutions and medium enterprises.


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Investment Strategies

Investment Bank manages a range of equity, fixed-income, asset allocation, andalternative asset class portfolios, focusing on global, regional, developed, andemerging markets, plus a number of specialty products, including country andsector funds. It offers new products in response to an evolving global market

and our clients' investment needs. The broad scope of our product selectionallows us to meet the needs of virtually any client, from large institutionalinvestors and high-net-worth individuals to retirement plan participants

Institutional Equities Securities

1.Debt Capital Markets2.Leveraged finance capital markets services3.Equity capital markets services


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One Stop Consulting

ONE-STOP GROWTH CONSULTING SERVICES:-

Investment Banks serve many clients with an interest in strategic alliances or

forming partnership to meet strategic and financial objectives. Our extensive

industry relationship and in-depth knowledge cover all relevant sectors. It

provides the one stop solution with service across:-

1. Valuing a business2. Divesting non core assets.3. Growth consultancy through structural alliances4. Aligning access to capital through our investment banking services5. Refining corporate strategy for growth orientation.


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These assignments typically involve...

y Understanding your business and the industry in-depth.y Developing an appropriate strategy given current industry trends and

Competitive dynamics.

y Determining likely strategic partners, sourcing clients from extensive contactsin the industry across the globe

y Contacting qualified prospects discreetly and confidentially.y Managing the due diligence process.y Conducting in-depth financial analysis and preparing comprehensive

investment proposals.y Structuring a mutually beneficial model and offer.y Negotiating the deal through to closing.y In all of its growth assignments, Investment Banks strives to achieve maximum

value and an optimal strategic fit for its clients.


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Real Estate Investment Banking

Now days there are millions of people engaged in fields such as construction,

insurance, mortgage banking, real estate appraisals, brokerage and leasing and

real estate development. Apart from this many of them engaged in corporate

real estate and in real estate lending in commercial banks, saving and loans etc.

Real estate is security for mortgages and for large amount of financial assets.

Work in real estate is rewarding, ever changing and challenging. Real estate

investment banking is the most important criteria in real estate. Real estate

investment banking is a pioneering method to real estate financing. It

includes structuring of real estate projects to abide with specific legal and tax

requirements. Here bank investors underwrite for companies issuing securities,

and then advice the company on the issuance and placement of its stocks. We

focus of structured financing products and services, especially in real estate

development. Here our clients will obtain best execution by divulging each

financing opportunity to the broadest possible targeted investor base. Our

professionals are experienced enough as they solve problems easily and get

solutions to client needs thus achieving the most flexible terms at lowest overall

cost of funds. Real estate investment banking group has various methods of

capital growing for real estate investment trusts (REITs) and real estate

operating companies (REOCs). We provide structure joint ventures, initiate,

negotiate acquisition issues through our financial advisory services etc.


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Chapter 5.

Merchant Banking

History

Merchant banks, now so called, are in fact the original "banks". These were

invented in the middle Ages by Italian grain merchants. As the Lombardy

merchants and bankers grew in stature on the back of the Lombard plains cereal

crops many of the displaced Jews who had fled persecution after 613 entered the

trade.

It was a short step from financing trade on their own behalf to settling

trades for others, and then to holding deposits for settlement of "billete" or notes

written by the people who were still brokering the actual grain. And so the

merchant's "benches" (bank is a corruption of the Italian for bench, as in a

counter) in the great grain markets became centers for holding money against a

bill (billette, a note, a letter of formal exchange, later a bill of exchange, later

still, a cheque). These deposited funds were intended to be held for the

settlement of grain trades, but often were used for the bench's own trades in the

meantime. The term bankrupt is a corruption of the Italian banca rotta, or

broken bench, which is what, happened when someone lost his traders' deposits.

Being "broke" has the same connotation.


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Role of merchant banker in a primary market issue management.

Merchant banker is the intermediary appointed by companies in the primarymarket issue. It has to look at the entire issue management and work as theManager to the Public Issue. Principal steps in a Public issue are as follows:

1. Vetting of Prospects: The prospectus is a document to communicateinformation about the company and the proposed security issue to the investingpublic. The draft prospectus containing the disclosures has to be vetted by SEBIbefore a public issue is made.

2. Appointment of Underwriters: An underwriter agrees to subscribe to agiven number of shares in the event the public do not subscribe to them. Theunderwriter, in essence, stands guarantee for public subscription inconsideration for the underwriting commission.

3. Appointment of bankers: The bankers to the issue collect money on behalfof the company from the applicants.

4. Appointment of Registrars: The registrars to issue perform a series of tasksfrom the time the subscription is closed to the time the allotment is made.

5. Appointment of Brokers and Principal Brokers: The brokers to the issuefacilitate its subscription. Filing of the Prospectus with the Registrar ofCompanies.

6.Printing and despatch of prospectus and application form: After theprospect is filed with the Registrar of Companies, the company should print theprospectus and the application form.

7.Promotion of the Issue: The promotional campaign typically commences with thefiling of the prospectus with the Registrar of Companies and ends with the releaseof the statutory announcement of the issue.

8.Allotment of Shares: If the issue is under-subscribed or just fully subscribed, thecompany may allot shares applied for by the applicants after securing the formalapproval of the concerned stock exchanges(s).

9.Listing of the Issue: The detailed listing application should be submitted to theconcerned stock exchanges along with the listing agreement and the listing fee.


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Chapter 6.

Outsourcing of Investment Banking

A number of big names have quietly hired Indian firms or set up their

own subsidiaries on the subcontinent to handle basic financial modeling

and comparable analysis.

The offshoring trend has taken another surprising turn. Having successfully

outsourced to India such back-office functions as IT, investment banks are now

sending some of their financial analysis and research overseas. In recent

months, firms including J.P. Morgan and Morgan Stanley have quietly hired

Indian firms or set up their own subsidiaries in India to handle basic financial

modeling and comparable analysis.


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Chapter 7.

Investment Banking in India

India emerges among the fastest growing investment banking markets

The economic liberalization in India has witnessed increased economicactivities of the foreign investors in India through investment banks in India.India has become one of the most preferred destination for the global investors.And as a matter of fact huge number of investment banks have opened theirshops in India

Investment Banks in India offers the following products and services to theIndian industry and individual clients

1. Asset Management

2. Issuing House (Capital Raising)3. Stock broking

4. Business & Financial Advisory services

5. Export Financing

6. Project Finance


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Chapter 8.

Top Investor Bankers

Outside India

1. Lehman Brothers

Lehman Brothers is an investment banking and financial services firm. It is a

market leader in equity and fixed income sales, trading and research, investmentbanking, private equity, and private banking. The firm is headquartered in NewYork, London, and Tokyo.

Structure

The publicly traded parent corporation (ticker symbol: LEH; CUSIP number:524908100) is Lehman Brothers Holdings Inc. The other branches of thebusiness are wholly owned subsidiaries. The firm is a member of the S&P 500and at last count (2004) had 16,200 employees. The firm's address is: LehmanBrothers; 745 Seventh Avenue; New York, NY 10019; USA.

Subsidiaries

Subsidiaries of Lehman Brothers include: Aurora Loan Services, Inc., SIBMortgage Corporation, Lehman Brothers Bank, FSB, Lehman Brothers Inc.,and Neuberger Berman Inc.


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2. JPMorgan Chase

Delaware corporation that uses the brand name JPMorgan Chase for its

corporate image advertising and communications and JPMorgan as a brand for

the investment bank business, is a global financial services firm with operations

in more than 50 countries. Its "corporate dna" is from the company Chemical

Bank, which took over Chase Manhattan then later JP Morgan. It retains

Chemical's bank headquarters, stock history, and most of its management.In 2004, the company acquired Bank One of Chicago, bringing on star Bank

One CEO Jamie Dimon as president and COO of the merged firm and

designating him as CEO William B. Harrison, Jr.' s future successor. Dimon

quickly made his influence felt by embarking on a cost-cutting strategy and

placing some former Bank One executives in key ranks at the new company.

History

In 2000, J.P. Morgan & Company merged with the Chase Manhattan

Corporation. On July 1, 2004, it merged with the country's sixth largest bank by

assets, Chicago - based Bank One. The firm is based in New York City, with

offices worldwide.


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In India

1. Kotak Mahindra Capital Co.

Kotak India Real Estate Fund I, a close-ended venture capital fund scheme

promoted by Kotak Mahindra Realty Fund has closed its domestic tranche

raising $100 million. In addition, the fund has received Commitments of $60

million, which is awaiting regulatory approval. The Fund, which has been

organised as a scheme of Kotak Mahindra Realty Fund under the SEBI Venture

Capital Regulations, has Kotak Mahindra Investments Ltd, as the investment

manager. The Fund would make investments at project a level with developers

as well at an enterprise level in realty development companies. The Fund has

the mandate to make investments in retail, hotels, healthcare, education, etc.

The strategy of the Fund would be to invest in the following types of

opportunities:Co-investments with large development companies at a project

level in various types of property development ventures, e.g., mixed use

schemes, hotels, residential, townships, offices, I.T. parks, shopping centres and

industrial, etc. Holding company level investments in mid market or large

development companies that demonstrate strong specialization in a niche

market, high quality brand, strong management team and desire for funding

growth through institutional/public equity.


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The management team of the Fund will be led by S Sriniwasan, Chief ExecutiveOfficer, and Hari Krishna, Chief Investment Officer. Sriniwasan has over 17years of experience in the financial services industry, with the last 13 in

Investment Banking. Prior to his current position, he was Co-head - InvestmentBanking With Kotak Mahindra Capital Company. As a key member of theInvestment Banking team, he has been instrumental in building the InvestmentBank as one of the leading Investment banks in India. Hari Krishna has nearly9 (nine) years of experience in the real estate advisory and corporate financeindustries, working at international companies such as Jones Lang LaSalle andCB Richard Ellis in India. His most recent assignment was as the Directorresponsible for the corporate finance and investments function at Jones LangLaSalle in India. Kotak Investment Banking, the investment banking jointventure between Kotak Mahindra Bank and Goldman Sachs, has won fourinternational awards in recent weeks, underpinning its reputation as India'sleading investment bank.

The awards and rankings are:

y Best Investment Bank in India by Global Financey Best Investment Bank in India by Finance Asia.y Best Equity House in India by Euromoney.y Best Domestic Equity House by Asiamoney


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2. Bajaj Capital Investment Co.

Bajaj Capital is a financial services company engaged in the business ofMerchant Banking, Resource Mobilisation, Distribution of Financial Products,Stock Broking, Money Market Broking, Investment Advisory and FinancialPlanning. Bajaj Capital is a Securities and Exchange Board of India (SEBI)approved Category I Merchant Banker/Investment Advisor, member of DelhiStock Exchange and dealer on OTC Exchange of India. Bajaj Capital offers youunparalleled capital raising solutions for your business. With over 120 offices in50 cities all over the country and a network of over 10,000 Advisor Associates,

we can connect you to potential investors all over the country

Being a value-driven Company that is responsible to its investors, weensure that every issue that we associate with is worthy of being marketed.After all, we have a reputation built over more than 40 years at stake! But oncewe take up an issue we make sure that we give our 100 percent to it. In brief, wecan 'insure' the success of your IPO.


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Bibliography

Sites Reffered

www.wikipedia.com

www.vccircle.com/news/investmentbanking

www.pnbindia.com/mbddetail

Books Reffered

Indian Banking in New Millennium- M.P.Shrivastava & S.P.Singh

PRATHMESH KELUSKAR - 13

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Transcript of PRATHMESH KELUSKAR - 13