[goelrinku]

Guys, I have been thinking for quite some time now to keep in touch with investment banking but unfortunatley don't know where to start from?

Investment Banking is defined as a form of banking done by investment banking firms for corporations, often in exchange for fees and commissions. The bank performs public offerings, acts as a broker, and carries through mergers and acquisitions.

Lets help each other gain some insight by putting up news and information about the latest M&As and investment banking fundaes

[goelrinku]

One of the recent M&As by an Indian company was Dabur acquiring Balsara Home Products for Rs. 143 crore. With this acquisition, 7 brands namely, Promise, Babool and Meswak toothpaste, Odomos insect repellant, Odopic dishwashing, Odonil air freshener and Sani fresh toilet cleaner were added to Dabur's kitty.

[monuguru]

Originally Posted by goelrinku

One of the recent M&As by an Indian company was Dabur acquiring Balsara Home Products for Rs. 143 crore. With this acquisition, 7 brands namely, Promise, Babool and Meswak toothpaste, Odomos insect repellant, Odopic dishwashing, Odonil air freshener and Sani fresh toilet cleaner were added to Dabur's kitty.

Hello rinku sir..

Kya yaar tum tho gaayab hi ho gaye... same with other ppl of MDI...... yaaro keep in touch....
atleast leave offline messages
neways coming to point.....
go to this thread.... this should give u sufficent material for alteast 2-3 days.... depends how much time u put into... for me its sufficient for more than a month

http://www.pagalguy.com/cat/showthread.php?t=2457

would be great if we continue on the above thread only....

Regards
Mohit

[goelrinku]

Chinese computer maker Lenovo has acquired IBM's personal computer division for $1.75 billion to become the 3rd largest PC maker in the world after HP and Dell.

[akhil_agrawal]

Procter & Gamble Co.'s $57 billion deal to acquire Gillette Co......

[goelrinku]

Unlike Goldman Sachs, Merrill Lynch and Morgan Stanley, Citigroup and JPMorgan do not have joint ventures with local partners in India's booming investment banking market. But they have climbed to the top of league tables for mergers and acquisitions as well as stock deals on the back of strong corporate ties.

"The strength of the Citigroup platform is the 1,000 plus corporate relationships in India that we have," said Pramit Jhaveri, head of investment banking in India for Citigroup.

Both groups are competing intensely for investment banking fees that are expected to grow by up to 40 percent this year, fueled by an economy growing at about 7 percent and foreign institutions flocking to invest.

After a relatively late launch of investment banking in India since 2000, Citigroup has grown to be the top M&A adviser for the last two years. JPMorgan, meanwhile, jumped to third in 2004 after not even reaching the top 10 in 2003.

The story is similar for securities underwriting. Citigroup has become the world's largest securities underwriter, with JPMorgan and Switzerland's UBS using their own relationships to build business.

To be sure, Goldman, Merrill and Morgan Stanley remain strong in India. They were the top three underwriters of stock offerings last year as equity issuance rose to $9.95 billion from $1.90 billion, according to data firm Dealogic.

One key advantage of their joint venture structure is retail distribution.

Morgan Stanley has teamed up with JM Financial Group, Goldman is aligned with Kotak Mahindra Bank Ltd. and Merrill works with DSP Financial Consultants Ltd.

"A year ago, the conventional wisdom in our industry was if a company wanted to raise $200 million, they had to leave the country," said Rajeev Gupta, joint managing director for DSP Merrill. "The threshold for going overseas today is $2 billion, not $200 million."

The local network enjoyed by the joint ventures becomes more important as the domestic market gets bigger.

"We can give (companies) a choice of which market fits their needs," said Gupta. "They know you are not giving them a recommendation linked to their limitations."

But the stand-alone banks are gaining momentum with deliberate expansions. In the 1990s, JPMorgan ended a joint venture with ICICI Bank Ltd. in 1998 and set out on its own, taking many of the venture's bankers with it.

By beefing up its investment banking staff, the bank has been able to win high-profile deals such as the $1.17 billion IPO of Tata Consultancy Services Ltd.

"Basically the (India) story's a great one, and it's getting better," said JPMorgan senior country officer Dominic Price. "You can't ignore 7-percent plus growth."

[PvDdicted]

www.careers-in-finance.com

www.vault.com

www.wetfeet.com

for all the scoop on obanking ..if u want the simplified version pf what u wanna know, pm me ....

[kabmilega]

Hi everyone,

I guess with astronomical salaries and overseas postings, Investment Banking has become the preferred choice of career for a BSchooler. Anyways, saw the discussion and thought maybe i could be of some help.

I guess a little background is necessary. I have a B.Com. with an Honours in Security Analysis and Portfolio Management and currently I'm working with Reuters as a Market Analyst, handling Public Equity offerings(PEO) and Mergers and Acquisitions(M&A) in India. Luckily, for me I converted an IIM-A call and will be going there shortly. The flip side was that i had to let go of a great job...anyway thats another story...

Basically, an investment bank has 4 arms:

Research - Stocks, Bonds, Gilts etc
Advisory - Wealth management, consultancy etc
M&A and PEO
Trading

The M&A division is the most glamorous, of course and it encompasses Advisory on possible targets that would fit a client's strategy (synergy), due diligence on the company to see compatibility(at the same time making sure the press doesn't get wind of it ) fairness opinion and finally, legal conformity and proper valuation.

I would say that the recent Holcim acquisition of ACC is a great case study for anyone wanting to study M&A. In India M&A activity comes under the purview of SEBI (under the SEBI Substantial Acquisitions of Shares and takeover(SAST)Regulation, 1997 and the Disclosure and Investor Protection(DIP) Guidelines). Some important provisions of these are as follows:

Anyone acquiring more that 5% stake in a company will have to make a disclosure statement and a public notice with the Exchange. As soon as his/her shareholding reaches 15%, he/she will have to make an Open Offer to the remaining shareholders at or above the price he has paid for the 15%, so that incumbent shareholders get an Exit Oppurtunity. After 15%, for every 5% he has to make a 20% open offer. These rules are slightly different for other countries.(for e.g in the UK the trigger point is 30%)

More on M&A Tactics(the interesting part) later.

KM.

[goelrinku]

That was a real good post kabmilega
especially for novices like me

looking forward to more gyan from ur side even after u join IIMA
by the way, if u have the Holcim ACC case study...can u attach the file in ur next post

Originally Posted by kabmilega

Hi everyone,

I guess with astronomical salaries and overseas postings, Investment Banking has become the preferred choice of career for a BSchooler. Anyways, saw the discussion and thought maybe i could be of some help.

I guess a little background is necessary. I have a B.Com. with an Honours in Security Analysis and Portfolio Management and currently I'm working with Reuters as a Market Analyst, handling Public Equity offerings(PEO) and Mergers and Acquisitions(M&A) in India. Luckily, for me I converted an IIM-A call and will be going there shortly. The flip side was that i had to let go of a great job...anyway thats another story...

Basically, an investment bank has 4 arms:

Research - Stocks, Bonds, Gilts etc
Advisory - Wealth management, consultancy etc
M&A and PEO
Trading

The M&A division is the most glamorous, of course and it encompasses Advisory on possible targets that would fit a client's strategy (synergy), due diligence on the company to see compatibility(at the same time making sure the press doesn't get wind of it ) fairness opinion and finally, legal conformity and proper valuation.

I would say that the recent Holcim acquisition of ACC is a great case study for anyone wanting to study M&A. In India M&A activity comes under the purview of SEBI (under the SEBI Substantial Acquisitions of Shares and takeover(SAST)Regulation, 1997 and the Disclosure and Investor Protection(DIP) Guidelines). Some important provisions of these are as follows:

Anyone acquiring more that 5% stake in a company will have to make a disclosure statement and a public notice with the Exchange. As soon as his/her shareholding reaches 15%, he/she will have to make an Open Offer to the remaining shareholders at or above the price he has paid for the 15%, so that incumbent shareholders get an Exit Oppurtunity. After 15%, for every 5% he has to make a 20% open offer. These rules are slightly different for other countries.(for e.g in the UK the trigger point is 30%)

More on M&A Tactics(the interesting part) later.

KM.

[kabmilega]

In the first stage, Holcim will pay about $200m for the 40% in Ambuja Cement India (ACIL), which is held by private equity investors.

ACIL is a holding company that holds 13.8% ACC stake that Gujarat Ambuja bought from the Tata group in 1999. Gujarat Ambuja owns 60% in this outfit, i.e ACIL

In the second stage, Holcim will pay about $600m for new shares to be issued by ACIL. This will take the Swiss MNC's stake in ACIL to about 67% and dilute Gujarat Ambuja's holding to 33%, from the current 60%.

The funds that ACIL secures from this issue will then be used to make an open offer to ACC shareholders for 36.21% of their stake at Rs 370 per share. If the offer is successful, ACIL, owned majority by Holcim, will have full control over ACC.

Hope that helps. Its more complex, of course, but this should do for now.

KM.

"There's method in my madness" - Hamlet.