Public Sector Merchant Bankers
Private Sector Merchant Bankers
Foreign Players in Merchant Banking
Brokers in stock exchange:
Advice on expansion and modernization:
Managing public issue of companies:
Merchant bankers advise and manage public issues of companies.
Services to private sector units:
Special assistance to small companies:
Merchant banks advice small companies on business opportunities, government benefits, incentives and policies.
Management of interests and dividends:
Money market operation:
Merchant bankers deal with short term money market instruments like commercial paper issued by large corporate firms, government bonds, and treasury bills issued by the RBI and so on.
Merchant bankers also help in leasing services where the lessor allows the use of specific assets to the lessee for a certain period on behalf of rentals or fees.
4. Advise the company to appoint auditors, legal advisers and broad base Board of Directors
5. Drafting of prospectus
6. Obtaining approvals of draft prospectus from the company’s legal advisers, underwriting financial institutions/Banks
7. Obtaining consent from parties and agencies acting for the issue to be enclosed with the prospectus.
8. Approval of prospectus from Securities and Exchange Board of India.
9. Filing of the prospectus with Registrar of Companies.
10. Making an application for enlistment with Stock Exchange along, with copy of the prospectus.
11. Publicity of the issue with advertisement and conferences.
12. Open subscription list.
Face value of equity shares:
1. Subject to the provisions of the Companies Act, 1956, the Act and these regulations, an issuer making an initial public offer may determine the face value of the equity shares in the following manner:
2. The disclosure about the face value of equity shares (including the statement about the issue price being “X” times of the face value) shall be made in the advertisements, offer documents and application forms in identical font size as that of issue price or price band.
Explanation: For the purposes of this regulation, the term “infrastructure sector” includes the facilities or services as specified in Schedule X.
Following are the steps involved in the marketing of the issue of securities to be undertaken by the lead manager:
After chosen the target market for selling the securities steps are to be taken to assess the maximum number of subscriptions that can be expected from the market would work to the advantage of the company if it concentrates on the regions where it is popular among prospective investors.
For successful marketing of public issues, it is important that efforts are made to enter into contracts with financial intermediaries such as an underwriter, broker/sub-broker fund arranger etc.
Launching advertisements campaign:
‘Brokers’ and ‘investors’ conference:
Timing of the Issue:
Both investment banks and merchant banks strive to build relationships with corporations so that the institution can provide a variety of services.