Basic Information

This course offers an understanding of what is called ‘CORE INVESTMENT BANKING’ which deals with the main activity profile and service basket of investment banks.

Nature of the Course and Objectives

1. Core Investment banking involves transaction origination and structuring. It does not deal with secondary markets, portfolios or trading. This course is not meant for those interested in secondary markets.

2. This is not a quantitative course. At the same time, it is also not a theoretical course. It will have a combination of financial strategy, problems and cases. The project work will involve financial modelling. Since i-banking is very regulated, study of regulations will be involved. Those who are not comfortable or do not see value in the study of regulatory perspective will not find the course interesting.

3. It provides an in depth understanding of the intricacies and transactions in core investment banking consisting of public offers in national and international capital markets, private equity, corporate restructuring, mergers and acquisitions.

4. To provide an overview the service aspects of management of public offers , buybacks and de-listings, transaction advisory for venture capital, private equity, restructurings, mergers, acquisitions and takeovers.

Prescribed Reading

Investment Banking – Concepts, Analyses and Cases – Pratap G. Subramanyam, CFM_McGraw Hill Professional Series in Finance, Tata McGraw Hill, 2008.

General reading

The Business of Investment Banking – K. Thomas Liaw, John Wiley & Sons, Inc.

Additional PPT reading material may be provided by the instructor during the course as may be found necessary.

The end-term examination would be conducted under Open Book system for a period of 2.30 hours. The end term will have case analysis, short problems and objective type questions.

Evaluation Criteria :
* Project Assignment 1- (Submission) 30%
* Project Assignment 2 – (Presentation) 30%
* End Term Examination 40%
Total 100%
Project 1 to be submitted during the Course. Project 2 should be presented at the end of the Course.

Please note that participants who do not fulfill the minimum attendance criteria set by the administration will not be able to take the examination and theri submissions will not be reckoned.

Instruction Methodology

The participants are expected to read through the relevant chapters from the prescribed text to familiarize themselves with the topics for discussion before attending the proceedings in each session. Theory will not be discussed in class.

This course is designed to be analytical and practice-oriented with problems and cases wherever applicable. A minimum level of familiarity with financial concepts, financial statement analysis and corporate valuation is essential. Those with flair for financial strategy and /or familiarity with regulatory requirements in capital markets will find the course interesting. Suitable inputs on global perspectives would also be provided. The project assignments and end-term examination would be focussed on testing the participants’ capability in financial strategy and analysis. The course load would be reasonable.


Sl No.


No. of Sessions (of 90 minutes each)
Business of Investment Banking

Introduction to Capital Market Mechanics and Investment Banking
Chapters 1 – 4, 8, 15
– History, evolution and structure of Capital Market.
– Introduction to Investment Banking, history, Industry structure and business portfolio of investment banks
– Allied Businesses
– Financial concepts and Instruments
– Primary equity and debt market – profile, role players, instruments.
– Corporate Valuation methodologies and their role in investment banking
– Discussions

2 sessions for the entire module

Transactions in Public Offers

Chapters 5, 7,
– Initial Public Offers, Debt Offers
– Rights and Follow On Offers
– Overseas Capital Market Offerings
– Comparative Models of India, US, UK
– Offer methodologies, processes
– Case Studies and Discussions
3 sessions for the entire module

Issue Management and Underwriting
Chapters 9, 10.
– Underwriting – methodologies, US model, Indian model.
– Issue Management – Investment banking perspectives, pricing, offer formulation, delivery
– Case Studies and Discussions / Problems

2 sessions for the entire module
Transaction aspects and advisory in Venture Capital / Private Equity
Chapters 6, 7, 11
– Venture Capital and Private Equity
– Placements of unlisted companies
– PIPEs and QIPs
– Investment banking perspectives, role of Investment Banker
– Case Studies and Discussions / Problems

3 sessions for the entire module

Management of Buybacks and De-listings
Chapter 12
– Equity Repurchase – theory, mechanisms, regulation, role of investment banks.
– De-listings – theory, methodology, regulations, role of investment banks
– Case Studies and Discussions / Problems
2 sessions for the entire module
Transactions and advisory aspects of Corporate Restructuring
Chapter 13
– Overview and theory of Corporate Restructuring
– Corporate re-organisations through transfer of assets
– Corporate re-organisations through dilution, transfer of control
– Investment banking perspectives
– Case Studies and Discussions / Problems
3 sessions for the entire module

Transaction advisory aspects of Mergers and Acquisitions
Chapter 14
– Introduction to Mergers
– Methodologies, transactions, investment banking perspectives, regulations
– Acquisitions and Takeovers
– Methodologies, transactions, investment banking perspectives, regulations
– Case Studies and Discussions / Problems
4 sessions for the entire module

– Guest Lecture and wrap up
1 session
Total no. of sessions