Presentation on Investment Banking

PRESENTED BY:- RAVINDRA LATTOO

GRAND PROJECT:-INCLUSIVE INVESTMENT SOLUTIONS OF THE INVESTMENT BANKING INDUSTRY

Before The

Presentation Begins…

Here is a saying which captures

the entire essence of the

GRAND PROJECT…

SHANTI MANTRA

ॐ स॒�ह ना॑��ववतु� । स॒�ह ना॑ � भु�ना॑क्तु� । स॒�ह व��र्यं॑� � करव�वह� । तु��ज॒�स्वि�व ना॑��वधी॑� �तुम�तु�� म� वि॑�व�वि॑�षा॒��वह� � ॥ ॐ शा�न्ति॒ः#तु�$% शा�न्ति॒ः#तु�$% शा�न्ति॒ः�#तु�$% ॥

SHANTI MANTRA

Let us all grow together, enjoy together, perform heroic deeds together; let our strength of intellect come together, let the bright intellects shine, and let us live without any hatred.

In a nutshell Sahana is togetherness, and hence conveys the message “Unity is Divinity”

GRAND CONTENTS

INVESTMENT BANKFund Syndication

EquityDebt Hybrid Or Mezzanine (Mix of Equity/Debt)

Intermediary between Issuing Securities & Investing Public.

Underwriting – Facilitating the process of raising capital for the organization.

INVESTMENT BANK

Strategic Corporate Relationship ManagementMergers – Corporate MarriageAcquistions – Adoption of Child (Small/Weak)Joint Ventures – Live- In RelationshipTake-Overs – KidnapDeMerger- Corporate DivorceTie-Ups/Collaberations – Friendship

INVESTMENT BANKING INDUSRY –REVENUE

•Indian Investment banking Industry as of 2012 is US$155 billion(source:- www.livemint.com)

•Growth Rate in India is expected to be 15-17%(source: www.hindubusinessline.com)

Source:- www.wsj.com Source:- www.wsj.com

http://www.livemint.com/

http://www.hindubusinessline.com/

INVESTMENT BANKING INDUSRY – GLOBAL PLAYERS

GLOBAL PLAYERS

INVESTMENT BANKING INDUSRY – INDIAN PLAYERS

1. Avendus2. Bajaj Captial3. Barclays Capital4. Cholamandalam Investment & Finance Company5. ICRA Limited6. IDFC Private Equity7. IDBI Bank8. IFCI9. Kotak Investment Banking10. Kotak Mahindra Capital CompanySource:- www.banksofindia.com

TOP 10 INDIAN PLAYERS

http://www.banksofindia.com/

INVESTMENT BANKING INDUSRY – GUJARAT PLAYERS

TOP GUJARAT PLAYERS

WWW.DEALCURRY.COM

INVESTMENT BANKING INDUSRY – TRENDS

WWW.DEALCURRY.COM

THE FIRM

WWW.OPULENCEBIZ.COM

Firm: - Opulence Business Solutions Pvt. Ltd, Ahmedabad

Founder Director:- Mr. Bhavesh Patel

Private Equity Fund:- Next Orbit Venture Private Equity Fund

Fund Size:- Rs. 700 Crore

Fund Allocation:- Rs 400 Crore to Real Estate & Rs. 300 Crore to MSME’s

THE FIRM

WWW.OPULENCEBIZ.COM

FUND PROPERTIES Tax Pass-through Extended Across Sectors; No Long Term Capital Gain Tax Including Investments In Real

Estate; Share Premium In Excess Off Mv Exempted Through Pe/Vc

Route; No Dividend Distribution Tax For Investment Done Through

Pe/Vc Route; Fund Will Bring Professional Management On Board And

Financial Discipline In The Company; Tremendous Strategic Value Addition In All Verticals By The

Fund; Accountability For Investment.

THE FIRM -SWOT

THE FIRM- (S)wot

WWW.OPULENCEBIZ.COM

SEBI Registered Next Orbit Venture Private Equity Fund –Raising MSME & Real Estate PE Fund with the target of INR 500 Cr, with additional green shoe option of INR 200 crores.

Authentic superior knowledge and Experience of our Management team.

Partner network of Opulence Business solutions which helps to manage the needs/expectations from the client.

Ability to create and sustain fruitful symbiotic relationships with concerned in the market.

Potential merger with Tax, Audit & legal is proposed to take Opulence to big 10 of India.

Krishi Tek Services is into contract farming, farm mechanisation & agri retail & has started first Agri knowledge centre in Dholka as an Integrated part of OBS.

Signature presence in almost all the sectors. Strong Documentation

THE FIRM- s(W)otUsual weaknesses of a startup firm but future

is opulentToo much responsibility on IndividualStaff-size of Opulence at this level in

reference with the loads of work.Lack of proper visibility and activeness in

Social-media such as Linkedin, Facebook, Twitter, Branchout, Blogger, Youtube and Vimeo.

THE FIRM- sw(O)t

WWW.OPULENCEBIZ.COM

Futuristic Opportunities for Opulence-PE FundSME listing in Bombay Stock Exchange and

National Stock Exchange in the year 2013-2014

Multi Family Office management Building brand by inviting foreign strategic

partner or fundReal Estate Fund ManagementNext Orbit Venture a sector and stage

agnostic fund having focus areas with a corpus of INR 700 crores

THE FIRM- sw(O)t

Opportunities for InvestorsTo get the strategic stake in the merged

entity of Opulence.To become sponsor/LP of the fundTo join as a partner in Real EstateTo join in businesses like fresh fruits,

vegetable trading, logistic park & terminal market

THE FIRM- swo(T)

From Global Competition-other I-bankers who have an eye to grab deals so Opulence has to be very attentive with market scenario and swift with its agenda, methodology and closure w.r.t deals.

THE FIRM- STPSEGMENTATION•UNLISTED COMPANIES AND SELECTIVELY

LISTED COMPANIES

TARGETING•80% FOCUS ON GUJARAT BASED COMPANIES.•20% FOCUS ON NON-GUJARAT BASED

COMPANIES

POSITIONING

One stop multi-solution platform for all end to end integrated financial services such as

•Tax efficient Capital structure for Promoter, Transactions and Businesses.

•Tax efficient Legal structure for Promoters.•Tax –efficient deal structure for Promoters.

THE FIRM- NEXT ORBIT VENTURE PE FUND STP

SEGMENTATION

•High Profile Investors as the minimum ticket for SEBI Registration of PE Fund is 1 crore.

TARGETING

Shareholders of large companies.

Top Insurance Agents.

Top Mutual Fund Agents.

Wealth Manager

Private Bankers

Multi-office managers

NRI's:-Salaried or Businessman whose income should be more than 50,000 GBP

POSITIONING

SEBI Approved Private Equity Fund.

Tax pass-Through extended across sectors

Accountability for Investment

Investment Flexibility

Fund Philosophy

1.SME Focus

2.Real Estate

3.Joint Development theme

4.Focus on Tier 2 & 3 towns.

.

THE FIRM –FUND DISTRIBUTION

THE FIRM –MODUS OPERANDI

Sourcing of the Project-To find

relevant business opportunities

Signing of Non-Disclosure

Agreement - For Healthy sharing of

information

Sendling Document checklist to

prospective client considering the

limitations of human mind

Checking the viability of the

project

Signing of the Engagement

Letter/Mandate Letter

Sending Information Memorandum to

Client

Evaluating the deal by analysing the

nature of the industry in which it

operates

Performing SWOT,Operational

Analysis ,Competetion analysis on

company

Calculating Valuation Model & projecting income,cash flows

and B/S

Preparing Term Sheet and finalising the

structure of the deal

In Termsheet do Due Dillengence,decide

Shareholder Agreement and fix exit strategy for PE

THE FIRM –PEST ANALYSISP- POLITICAL

Policy & Govt. Regulations – Sector SpecificAIF Guidelines

E-ECONOMIC Deal Structure of Promoters Tax Structure

S-SOCIAL Mindset of Decision makers & his conditioning &

influencers influential ability on decisionmakersT-TECHNOLOGY

Rise in Applications & Technology of IB Softwares – Kvezar, Venture Intelligence & affliated with ROC.

THE FIRM –MARKET RESEARCH ANALYSIS Sampling: Random Preferable Route: -Questionnaire Sample Size:- 30 PE Firms Respondents:- CXO Position Officers(Managing Director,

Associates Partner or Vice President in Private Equity Firms) Mode of Approach:- Telephone & Email.

THE FIRM –MARKET RESEARCH ANALYSIS

Sr. No. Private Equity Firms Location

1 Aavishkaar India Micro Venture Capital Fund Mumbai

2 Actis Capital Mumbai

3 Canaan Partners Gurgaon (Delhi)

4 2i Capital (India) Private Ltd Bangalore

5 3i India Mumbai

6 Apax Partners India Advisers Pvt Ltd Mumbai

7 APIDC-Venture Capital Ltd Hyderabad

8 Avigo Capital Partners Delhi

9 Baring Private Equity Partners (India) Pvt Ltd Gurgaon (Delhi)

10 BTS Investment Advisors Private Ltd Mumbai

11 ChrysCapital Investment Advisors Delhi

12 Cipher Capital Advisors Pvt. Ltd. Mumbai

13 Citibank Private Equity Ltd Delhi

14 IFCI Venture Capital Funds Ltd. Delhi

15 Redclays Capital Bangalore

16 Norwest Venture Partners India Mumbai

17 Sherpalo India Advisors Pvt. Ltd. Mumbai

18 Ambit Pragma Mumbai

19 IDFC (Private Equity) Mumbai

20 Avendus Mumbai

21 Blackstone Advisors India Private Ltd. Mumbai

22 Blackstone Cleantech Venture Partners (BCVP) USA

23 Frontline Venture Services Private Limited Mumbai

24 Artiman Capital India Pvt. Ltd. Bangalore

25 Helion Venture Partners Gurgaon (Delhi)

26 Helion Advisors Pvt. Ltd Bangalore

27 Red Fort Capital Advisors Pvt. Ltd. Delhi

28 INDIAREIT Fund Advisors (Pvt.) Ltd Mumbai

29 Morpheus Capital Partners Bangalore

30 Henderson Asia Pacific Equity Partners' London


STAGE FOCUS

Interpretation:-Most of the Private Equity Firms is focused on Growth Capital & Venture Capital. As, there has been an observed trend, over the last few years in India for the Private Equity Firms to invest in Companies who are on the growth stage, making profits & already established in the market, whereas for venture capital funds in particular to specialize in specific technology. Some examples are biotech, software or LBO funds specialized in a particular industry, such as media.


INDUSTRY FOCUSINDUSTRY FOCUS


GEOGRAPHIC FOCUS


SIZE OF INVESTMENT


PE FIRM LIKELY FOCUS ON THE TURN-OVER OF THE INVESTMENT COMPANY

EXIT ROUTE



TENURE OF INVESTMENT IN YEARS


GLOBAL DESITNATION OF PE INVESTMENT


PRINCIPLES VALUE OF INVESTING


No of Deals/Year

DirectMail

Prepare and Send Research Reports to V.V.I.P of IB/VC/PE Industry. Send Prospectus of NOVF to the same.

Training & Development workshops

Educating concerned who happpen to be interested in PE and I-baking Industry increasing goodwill for

Opulence and awareness about PE IndustryGuest Lectures at Management Forums,Business Schools

EventsOn any Grand success achieved by Opulence or any personal events in Management of Opulence

PrintLivemint, Economic Times specially when they launch another series of Next Orbit Venture Fund

Email

Prepare Research Reports and send to concerned in Industry.

Generate E-mail Campaign for NoVF and I-banking to concerned Channels

Get a Genuine pool of people who can create E-mail Database of Concerned or purchase from various online databases

THE FIRM –RECOMMENDED MARKETING PLAN

THE FIRM –RECOMMENDED MARKETING PLAN

LinkedIn

Make proper connections in your industry

Comment of dealspace of PE and M&A

Join various business communities

Follow reputed PE Funds and I-banking Firms

Promote Opulence on LinkedIn through their Advertising campaign

Twitter

Company's management should have their own twitter A/c

Company should also have their twitter A/c

Tweet about PE & M & A dealspace and generate as many followers

Youtube/Vimeo

Upload Videos concerning PE and M & A Space

Upload Videos of opinions of Management on PE and M& A Space

THANK YOU

http://www.unitedworld.edu.in/

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Presentation on Investment Banking

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