Mukesh Patel School of Technology Management and

Engineering
Technology Management Department

Course Policy

Program/Branch/ : MBATech / All Branches / Sem VII

Semester

Academic Year : 2022-23

Course Code & Name : MBAB09004

Investment Banking
Credit Details : L T P C
0
2 0 2

Cours Coordinator : Dr. Kalyani Mulchandani

e
Facult
y
Contact No. & Email : kalyani.mulchandani@nmims.edu

Office : MPSTME

Office hours : Mon-Sat- 10.00 am - 4.00 pm

Other Course Faculty : Course Faculty 1: Prof Kalyani Mulchandani

members teaching this Contact No. & Email:
course Kalyani.mulchandani@nmims.edu
Office:022-45024859
Office Hours: Mon-Sat- 10.00 am - 4.00 pm

Course Faculty 1: Prof Krishnan Sampath

Contact No. & Email:
krishnansampath6@gmail.com
Office:
Office Hours: Mon-Sat- 10.00 am - 4.00 pm

Course Faculty 2: Course Faculty

Dr. Samie Ahmed 3: Dr. Ritesh Verma
Sayed Contact No. &
Contact No. & Email:
Email: riteshkumar.ver
ssamie@gmail.com ma@nmims.edu
Office: Navi Mumbai
Office Hours: Mon-Sat- 10.00 am - 4.00 pm
 Office: Indore
Office Hours: Mon-Sat- 10.00 am - 4.00
pm
Queries by Emails are encouraged.
Course link : Portal Link
MS Teams Link

1 Introduction to the Course

1.1 Importance of the course

This course will provide a broad overview of investment banking. Investment Bankers provide
variety of services like new issue management, share repurchase, underwriting, mergers and
acquisitions advisory and corporate advisory services.
The objective of this course is to provide the students with an insight of the structure and
functioning of investment banking in India. The course will focus on services offered by
investment banks.

1.2 Objective of the Course

1. Understand the role and services offered by Investment Banks
2. Examine the structure and functioning of investment banking in
India.
1.3 Pre-requisite : NIL

2 Course Outcomes (CO) and mapping with Program Outcomes (PO)

2.1 Course Outcomes

After completion of this course, students will be able to -

1. Apply knowledge of range of services offered by Investment banking

2. Evaluate application of SEBI guidelines on investment banks operations

3. Evaluate activities undertaken to perform the role of investment banking in

new issue management and capital restructuring

2.2 CO-PO Mapping

Program Learning
Program Program Learning Goal 3 – Program Program Learning
Goal 1: Understanding Business Learning Goal 4- Goal 5: An
An understanding of Learning Goal 2: Domains and Integration Effective understanding of
global practices Critical thinking with Technology communication ethical business
impacting skills skills models
organizations
CO1 3
CO2 3
CO3 3

3. Syllabus, Pre-class activity and References

3.1 Teaching and evaluation scheme

Teaching Scheme Evaluation Scheme

Internal Continuous
Lecture
Practical Tutorial Assessment (ICA) Theory
Hours
Hours Hours Credit As per Institute Norms TEE
per
per week per week
week
Marks 50 Marks 50
3 0 0 2

3.2 Syllabus
Page 5 of 12
3.3 Pre-class activity

Outline for preliminary study to be done for each unit will be provided prior to
commencement of each unit. Preliminary study material (questions, presentation, notes etc.)
will be made available on the student portal / teams. Students are expected to go through this
material before attending the upcoming session. During the lecture session, more emphasis
will be given on in-depth topics, practical applications and doubt solving.

3.3 References

Text Books:

 Subramanyam, P.G. (2021) latest re-print . Investment Banking 4/e, New Delhi,
Tata Mc Graw Hill.

Reference Books:

 Bhole, L.M. (2009). Financial Institutions and Markets, 5/e, New Delhi, Tata
McGraw Hill.
 Pathak, B. V. (2013). The Indian Financial System, 3/e, New Delhi, Pearson.

Internet references:

 www.rbi.org.in
 www.sebi.gov.in

Note: The latest edition of books should be referred.

4. Laboratory details

No Laboratory details for this course

5. Tutorial Plan
No Tutorial for this course

6. Assessment Policy

6.1 Component wise Continuous Evaluation Internal Continuous Assessment

(ICA) and Term End Examination (TEE)

Assessment ICA (50 Marks) TEE

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 Component (50
Marks )
Class Test 1 Class Test 2 Project Viva / Quiz for
(Group activity) Class
Participation
Marks 10 10 25 5 50

Timeline 10th Oct – 15th Oct 14th Nov – 19th 23rd November 20th Nov – 25th
November Nov

6.2 Assessment Policy for Internal Continuous Assessment (ICA)

Assessment of ICA comprises of the following components.

1. Class test 1 and 2 (20 Marks)

a. Two class tests will be conducted as per the academic calendar.

b. It may be conducted offline for 20 marks each and scaled down to 10 marks each

2. Project : Financial Statement Case Analysis Report (Group activity) – (25 marks)
a. Faculty will make group of 5 or 6 students
b. Group is expected to select an Initial Public Offer listed in the year of 2021 or first half of 2022.
Students will analyse the Prospectus in detail in regard to Risk Factors of the firm, pre and post
financial evaluation, green-shoe option, underwriting arrangement, shareholding pattern (pre and
post issue), justification of the offer price, company and industry overview.
c. Statistical techniques can be employed for financial evaluation.
d. Students may download Prospectus from the internet.
e. Assessment will be based on the Project report

Rubrics for Evaluation

Criterion Below Meets Exceeds Expectation

Expectations Expectations (More than 60%)
(Less than 40%) (40%-60%)
Clarity Not able to explain Explains points Explains points explicitly with
points clearly. Lacks clearly; points relate specific explanatory detail backed
focus and points put to overall argument. up with relevant
forth do not relate to research/information/example;
the overall/main points relate and support the
argument or idea. overall argument.

Organization Presents information in Presents information is Presents information in a

a cluttered manner with in a logical sequence. clear and logical order

Gather Struggles to pinpoint Clearly identifies the Demonstrates a sophisticated

Relevant the information information required. understanding of what
Information needed. Gathers Gathers information information is needed.
information from one from multiple valid and Gathers extensive information
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 source. Minimal reliable sources. from a variety of valid and
evidence of Evidence of reliable sources including
search/selection search/selection journals, texts, etc., specific to the
criteria. criteria. subject. Clear evidence of
Search/selection criteria.
Select and Use Has limited Selects and uses Selects and uses relevant concepts
Relevant knowledge on relevant concepts and and frameworks. Needs no
Concepts and selecting and using frameworks. Requires assistance in selecting relevant
Frameworks relevant concepts and minimal assistance on concepts and frameworks.
frameworks. Requires choosing relevant
extensive assistance concepts and
in selecting relevant frameworks.
concepts and
Frameworks.
Evaluate Little evidence of Considers context, Considers context, data,
Information evaluation and data, assumptions, assumptions, and evidence.
for Effective identification of and evidence. Eloquently integrates multiple
Decision implications. Minimal Integrates multiple viewpoints. Implications are
Making evidence of selection viewpoints. clearly developed. Advanced
based on quality or Implications are evidence of selection based
Appropriateness. developed. Evidence on quality or appropriateness.
of selection based on
quality
Or appropriateness.

3. Viva / Quiz for Class Participation (05 marks)-

Every class student will asked to go through investment banking news and share some content, questions will
asked on the same. The faculty will ask questions in every class based on the content being taught. These
marks will be added in ICA class participation component.

6.3 Assessment Policy for Term End Examination (TEE)

A written examination of 50 marks for 2 Hours duration will be conducted for the course as per the
Academic Calendar.

7. Lesson Plan

Sessio Mapped Reference

Topics
n CO
No.
1 Overview of Investment Banking 1,2 Chapter 5
 Meaning, Services/Functions of Investment
Banking
 Regulatory/Structure of Investment Banking

2 Money Markets 1 Handouts

 Structure and role of Money Markets in India
and globally
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  New Money Market Instruments-Call Money,
Commercial Paper, Term Money, Notice Money,
Treasury Bills, Gilt-edged Securities, Certificate
of Deposit, repos

3 Money Markets 1,2 Handouts

 Bills Rediscounting, Inter Bank Participation
Certificates etc.
 Valuation of Commercial Papers, Certificate of
Deposits & Treasury Bills, Repurchase Orders
 Regulatory authorities, guidelines and
regulations of Money Market.

Capital Markets 1 Chapter 1

4  Significance of Indian and Global Capital and
markets handouts
 Capital Markets v/s Money Markets TB1
 Valuation of Right Issue
 Players-Investors and Companies
 Primary and Secondary Markets in India and
abroad
 Current Developments
5 Primary Markets 2, 3 Chapter 7 &
 Procedural aspects and Due Diligence of 8
prospectus or Letter of offer
 Pre-issue decision making and
management
 Underwriting obligation to the Underwriters in
case of under-subscription
 Securities Exchange Board of India (SEBI)
Guidelines for Public issues
 Security Laws/Regulatory Framework for
governing Indian Capital Markets

6 Domestic Issue Management 3 Chapter 7

 Pricing of various fund raising instruments Net TB1
Asset Value Method, Book-building, Book-
building through on-line Initial Public Offering
(IPO)
 Reverse Book-building

7 Domestic Issue Management 2,3 Chapter 7

 Eligibility to Issue Securities TB1
 Fixed v/s Book-building process
 Exchange Traded Funds, its varieties and
guidelines
 Basis of Allotment of Shares
8 Buy-backs and Delisting of Shares 2,3 Chapter 12
 Introduction to Share Repurchase or TB1

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 Share Buy-backs
 Delisting of Listed Companies
9 Private Equity & Placement 3 Chapter 10
 Assessment of Private Placement &11
 Instruments used in Private Placement
 Private Equity and Venture Capital Chapter 9
International Markets
 Instruments TB1
 Players
 American Depository Receipts, Global
Depository Receipts
10 International Markets 3 Chapter 9 &
 Indian Depository Receipts 2
 External Commercial Borrowings
 Foreign Currency Convertible Bonds TB1
 Foreign and Euro Bonds, characteristics,
Advantages and Disadvantages
 Procedure for Issue of Instruments and their
costs
 Offshore Fund Arrangement
 Loan Syndication
 Valuation of ADR & GDR

8. Teaching-learning methodology

Lecture session will be conducted as follows-

1. Lectures:
o Outline for preliminary study to be done for each unit will be provided prior to
commencement of each unit.
o Deeper concepts and applications will be explained through Presentation and/or Video
Lectures.
o Numerical problems based on concept will be solved during the session on smart board.
o Discussion of Appropriate Cases for better learning

2. Project Work

a. Faculty will make group of 5 or 6 students

b. Group is expected to select an Initial Public Offer listed in the year of 2021 or first half of 2022.
Students will analyse the Prospectus in detail in regard to Risk Factors of the firm, pre and post
financial evaluation, green-shoe option, underwriting arrangement, shareholding pattern (pre and
post issue), justification of the offer price, company and industry overview.
c. Statistical techniques can be employed for financial evaluation.
d. Students may download Prospectus from the internet.
e. Assessment will be based on the Project report

9. Active learning techniques

Active learning is a method of learning in which students are actively or experientially involved in
the learning process. Following active learning techniques will be adopted for the course.
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a) Blended Learning: Students will be introduced to the topic while the in-depth topics, applications and
numerical problems will be discussed by the faculty in the lecture session. Outline for preliminary study to
be done for each unit will be provided prior to commencement of each unit. Preliminary study material
(video links, presentation, notes etc) will be made available on the student portal/MS Teams.

b) Current Affairs: Students will be asked to read Economic times and asked questions on Financial /
current news
c) Case lets : Small problems will be given to students and they will asked to give the opinion

10. Course Material

Following course material is uploaded on the student portal: (give student portal link)
 Course Policy
 Lecture Notes
 Lecture Presentations
 Books / Reference Books
 Assignments

11. Course Outcome Attainment

Following means will be used to assess attainment of course learning outcomes.

 Use of formal evaluation components of continuous evaluation, assignments, projects, semester
end examination
 Informal feedback during course conduction
12. Academic Integrity Statement

Students are expected to carry out assigned work under Internal Continuous Assessment (ICA)
independently. Copying in any form is not acceptable and will invite strict disciplinary action.
Evaluation of corresponding component will be affected proportionately in such cases. Plagiarism
detection software will be used to check plagiarism wherever applicable. Academic integrity is
expected from students in all components of course assessment.

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