Why is Investment Banking in India Important?

An investment bank is a private entity that offers finance related services to high net worth individuals, corporations, and governments. These services include but are not limited to raising capital by underwriting or acting as the client's mediator in the issuance of securities, raising capital, trading securities, M&A, and debt syndication.

These banks earn a profit by charging fees or commissions in exchange for bespoke investment banking services and various different financial and business advisory services.

Investment Banking Services

The primary services of any investment bank include corporate finance, asset management, the assistance of businesses in mergers and acquisitions (M&A) along with offering ancillary services such as market making, trading of derivatives and equity securities, and FICC services. Raising Capital & Security Underwriting: Investment banks deal with complex and large financial transactions and act as a mediator between a company that wants to issue new securities and the buying public.

These banks propose the best way to raise funds, usually through, debt and equity offerings, which may be required for starting a new venture or restructuring an existing business. This includes raising capital through Initial Public Offerings (IPOs), bank credit, and selling shares to investors on behalf of the client.

Mergers & Acquisitions: Investment banks are also vital in providing advisory and procedural services for mergers and acquisitions of companies. If a company wants to buy/merge or invest in another company, the investment banks provide services business valuation, negotiation, pricing and structuring of the deal, as along with procedure and implementation. These mediators also get buyers and sellers together by charging a fair commission for their efforts.

Role of Investment Banking in India

Corporate and investment banking in India is a vital cornerstone for small and medium businesses in India. There are many types of investment banks like multinational banks, home-grown banks and boutique banks providing vital services to the growing entrepreneurs and SMEs venture that are flourishing in the country over the past few decades. By helping companies raise funds for new or existing ventures, help businesses create a global footprint, and much more. Investment banking in India paves the way for a boundless growth of businesses, without the constraints of capital.

To avail investment banking services in India one should research and evaluate the offerings of the best investment banks in India and select the right financial institute for their individual or company needs.

Author Bio:

The author of the article has a deep knowledge of investment banking and discusses the importance of investment banking in India and investment banking services.

The author of this article shares information about the government’s crucial need of finance services from infrastructure companies in India.