Investment Banking in India is widely used for a host of services rendered and is the same set of services that is often rendered by companies across the globe.
Helping companies raise capital through an IPO
An investment banker may have a say in fixing the lead manager to the IPO. They maybe involved in the entire process of the IPO from scratch. There is no fixed set of job that an investment banker does and it is more broad based in nature. Along with the lead managers to the issue an investment banker may ensure the success of the IPO.
Underwriting an IPO
An investment banking division may also underwrite an issue, whether it is an issue of share or debt. This would help the IPO from devolving.
Private placement of shares
Private placement of shares through a qualified institutional placement or otherwise is another important job of investment banking firms. This helps the company to raise capital for expansion or other purposes.
Mergers and acquisitions
This is another important area of investment banking. Companies that are looking at acquisition targets are generally helped by investment banks. These investment bankers do a through research and try to arrive at a fair valuation for a company.
Ensuring compliance with rules and regulations
Investment bankers could also ensure that companies meet guidelines requirements from time to time, particularly during an IPO, acquisitions and mergers. They tend to be well-versed with the laws and are considered as specialist. From time to time they could also assist in internal matters pertaining to companies.
There is no specified definition of an investment banker today. They perform a host of jobs, but the primary aim is to raise capital for other companies and clients. This could involve through IPOs, private placement or qualified institutional investment. In India their role is also enhanced by way of assisting the government during a follow on public offer or sale of government stake in government owned companies. Clearly, investment bankers have an important role to play in the present dynamic settings of business.