Top 5 services provided by investment banking firms in India
Introduction
Investment banks are an important part of the financial ecosystem, supporting the movement of capital and giving strategic advice to clients While the nature of their business involves major risks, investment banks employ highly qualified personnel who are specialists in their industries, allowing them to provide clients with personalised solutions. Investment banks also play an important role in financial markets by enabling the flow of funds between investors and issuers, as well as by giving strategic assistance to organisations looking to raise capital, acquire other companies, or liquidate assets. There are many investment banking firms in India that can help your businesses with various financial services
Services provided by an investment banking firm
1. Private Capital
Private equity firms have been in India since the 19th century, when European merchant banks first founded trading houses in the country Private equity is the investment in non-publicly listed enterprises with the purpose of raising their worth over time and eventually profiting by selling them at a greater valuation. Private equity businesses often invest for the long term and may hold their investments for several years before selling them During this time, they collaborate closely with the company's management team to identify areas for improvement and to put in place plans to increase efficiency, cut expenses, and drive growth
2 Mergers & Acquisitions
Investment banks assist organisations in a variety of industries in identifying potential acquisition targets, evaluating their strategic fit, and structuring the transaction to maximise value for all parties involved. They also offer strategic advice to businesses that wish to merge with or acquire another company Banking firms thoroughly analyse their potential acquisition targets and identify potential synergies The professionals provide accurate valuation services to assist their clients in determining fair valuations during merger and acquisition processes.
3. Asset management
The goal of the asset management service is to help clients take care of their investments and other financial assets They provide a variety of personalised investment solutions to assist clients in meeting their financial objectives.
Asset management includes portfolio management, risk management, and investment research
They work closely with clients to understand their financial needs, risk tolerance, and investment goals, and then construct personalised portfolios to meet those needs. Investment banking firms can find best business investment opportunities for their clients
4. Debt Financing
Investment banks offer debt financing as a service to help their clients raise money by selling debt instruments like bonds, notes, and other debt securities. They collaborate extensively with their clients to understand their financial needs and goals, and then build bespoke debt financing solutions to fulfil those demands.
Debt finance service includes the following examples:
Corporate bond issuance: They collaborate with firms to issue bonds to finance their operations, acquisitions, or other strategic activities
Municipal bond issuance: They work with state and municipal governments to fund public infrastructure projects such as roads, schools, and airports by issuing bonds.
Asset-backed securities: They assist clients in securitizing their assets, such as mortgages, auto loans, or credit card receivables, by issuing asset-backed securities to investors.
Convertible bond issuance: They assist clients in the issuance of convertible bonds, which are debt securities that can be converted into equity at a later date.
5. Structured Finance
Investment banking firms offer a service called "structured finance," which is meant to help clients come up with creative ways to finance their assets and cash flows Their structured finance service entails the development and issuing of complicated financial instruments such as asset-backed securities, collateralized debt obligations (CDOs), and other structured products These instruments are designed for transferring credit risk from the issuer to investors, while providing investors with customised exposure to specific types of assets and cash flows
Conclusion
Investment banks offer a variety of services that are necessary for the modern economy to function. Their services are crucial for businesses and governments to acquire finance, manage risk, and achieve their strategic goals They use their expertise, market knowledge, and analytical abilities to assist clients in meeting their financial goals while also contributing to economic growth and development
Pantomath is one of the leading investment banking firms in India. Their services include investment banking, corporate advisory, asset management, and structured finance. They have completed over a hundred fund raising transactions and have a network of over a thousand investors. Visit Pantomath today to learn more about their services.