Investment Banks In India
Investment Bank is a financial organizations that helps individuals, entities, or governments to raise capital and also provide financial consultancy services. They act as an intermediary between investors and companies. An investment banker assists startups in raising funds to start their business and helps to find investment chances. Apart from finding capital, it supports startups in preparing business plans and pitch decks and entering the gateway of the capital market. Hence, Let’s look at the top investment banks in India:
One of India’s central investment banks, Axis Capital Limited, is a leading equity firm. Firstly Axis Capital was founded in 2005 in Mumbai as Enam Securities Private Limited. Also, Axis Capital Ltd owns Axis Bank, the largest private sector bank. The bank offers solutions in conventional value and investment banking. It provides financial services to companies, investors, and government bodies in private equity, equity capital markets etc.
2. Avendus Capital:
Avendus Capital is a leading financial service company that offers tailor-made solutions to asset management, wealth management and credit transactions.Similarly it offers investment banking too.founded in 1999 with its headquarters in Mumbai. The Avendus brings together ideas, innovation, and people to empower high-performing entrepreneurs, wealth creators, and leaders of the new-age economy to fulfil their dreams. The firm advises large global corporations on strategic matters and also about mergers and acquisitions transactions. The complete subsidiaries of Avendus capital include Avendus Capital Incorporation and Avendus Capital Private Limited, situated in New York and London, respectively.
Edelweiss Financial Service Limited was a part of Edelweiss Group, founded by Rashesh Shah and Venkat Ramaswami in 1995. India’s leading financial service companies, Edelweiss, provide a spectrum of financial services to a substantial client base, including corporations, institutions, and individuals. They also offer assistance, including credit facilities, franchise and advisory business (Asset Management, Wealth Management, and Capital markets), and Insurance (General and Life Insurance). Credit facilities comprise retail and corporate credit, SME and business loans, agriculture and rural finance, wholesale mortgages and distressed credit. Centrum India and SMC Finance are the main competitors of Edelweiss.
The JM Financial Institution Securities established from 1998 with its headquarters in Mumbai. They eventually provide all-in-one investment financial services comprising Investment banking, wealth management (fee and fund based activities), Asset management (mutual fund business), Mortgage lending (retail mortgage lending and wholesale mortgage lending), Distressed Credit (Asset reconstruction business). The company works with high net worth individuals, big corporations, and retail investors. They are notable for their private equity services in the business.
ICICI Securities Limited is a subsidiary of ICICI Bank Ltd. Firstly it began its operations in 1995 with its headquarters in Mumbai. Subsequently the firm conveys advisory services to corporations, financial institutions, and retail investors. Some of the company’s assistance comprises Investment banking, Institutional broking, Retail broking, Wealth management, placement of IPO. The company is the largest e-brokerage business in India. The company offers a spectrum of products and services in derivatives, equities, research, and advisory services, including equity portfolio advisory, financial planning, retirement planning, and estate planning.
6. IDBI Capital:
IDBI Capital is known to be IDBI Capital Market Services Limited. It is a wholly-owned subsidiary of IDBI Bank, incorporated in 1993. It is an investment banking company that offers a perfect bundle of services and products, including capital market products, Fund management, Private equity, Underwriting as well as debt replacement . They aim to maintain integrity and transparency to guide their vision to have an International presence and work cohesively with passion and commitment towards the benefits of the customers they serve.
The 03 Capital, a mid-market investment bank formed in 1993, specialises in providing strategic and financial advice to the retail, institutional and corporate clients. The company focuses on corporate finance as well as alternate asset management as its core business. They provide unbiased and tailored solutions to different industrialists, healthcare, life science, and financial services too. Avendus Capital is the edge-to-edge competitor of O3 capital.
The Veda Corporate Advisors the largest Chennai-based investment banking firm, founded in 2003. The firm assists clients in mergers and acquisitions, buyouts, venture capital, joint venture, and private equity. It serves real estate, health care, media, infrastructure, and financial services. The company authorised and paid-up capital stands at 2,50,000 and 1,34,420, respectively.
9. Spark Capital:
Firstly Spark Capital is founded in 2001, with its headquarters located in Bangalore. It is one of the prime mid-market investment banks that connect with financial services encompassing Investment Banking, Fixed Income Advisory, Wealth Advisory, and Institutional Equities. Above all customer satisfaction is the core objective, thereby maintaining a sustainable and long-term relationship with clients. Sectors, where they built considerable transaction experience, are fintech, healthcare, commerce, infrastructure, and media. Spark Capital managed to be on the League table all time.
10. Unitus Capital:
Unitus Capital was India’s first impact-based investment banking firm. It was established in 2008, with its headquarters in Bangalore. It provides services such as Private Equity, Corporate Advisory, Debt Finance, and Structured Product. They are dedicated to delivering top-tier capital raising and advising services to local and international investors to assist businesses while positively impacting society and the environment. Agriculture, education, healthcare, and financial inclusion are the most heavily serviced industries.
11. Mape Advisory Group:
Mape Advisory Group, firstly formed in 2001, is a leading investment bank focused on Private Equity and Merger and Acquisition advisory starting from origination to closure. It has been consistently ranking top 10 investment in India. A team of senior investment bankers founds them to help their clients identify and execute effective transaction strategies. In addition, they work with India’s most leading industries across Telecom, Technology, Healthcare, financial services, Engineering.
Ambit is one of the premier independent investment banks formed in 2006. In particular it provides capital and financial advice to its clients, say, high net worth individuals, self employed individuals, corporates, company, Small and Medium Enterprises. The firm focused on furnishing customized solutions that are appropriate to their client’s needs. It is mainly of of 6 core business groups: Asset Management, Corporate Finance, Equity Capital Market, Institutional Equities and Research, Global Private Clients, and Non-Banking Finance Company.
Investment banks are the most calling sector as they focus on managing and increasing clients’ financial needs, helping them grow their business. A good investment banker knows the best ways to raise funds by adding more creative ideas to economic models. Moreover if you are looking for the best investors to fund your startups, Let’s get connected – Our team of professionals makes startup funding possible.
Services Offered :
There is a variety of services offered by investment banks in India. The top main services includes:
- Buybacks and Takeovers: Investment bankers in India advise their clients to buy back their shares at the right time. In addition they help them to do their due diligence, finding out the target company, and understand whether the takeovers are necessary. They also help the companies adhere to compliances and managements as per SEBI(Securities and Exchange Board of India).
- Corporate Advisory: Investment bankers in India offer corporate advisory to various companies, especially to giant companies and corporate bodies. As corporate advisory is a huge area, they first understand the needs of the companies and then offer services. They start with business appraisals, and then the investment banks in India help the companies develop a business plan. Once the business plan is set, they go for strategic project advisory. Then they also help companies with business valuation, project identification, and corporate restructuring.
- Mergers & Acquisition Advisory: Companies always focus to expand their market share and generate more revenue. Thus, they need to find a better opportunity to merge with other companies or acquire any that can help them reach their objectives. Investment banks in India help these companies make the right deals and make wise decisions so that the Return on Investment(ROI) gets to a maximum and the risk becomes the least. It is the consolidation of companies and assets through various financial transactions.
- Sales and trading: Within investment banking, sales, and trading groups are the agents for clients. They call institutional investors with opportunities. Traders execute orders and advise clients in case of the enter and exit financial positions.
- Asset Management: Usually, investment banks in India offer management of public issues under two methods – the fixed price method and the book building method. They also offer IPO (Initial Public Offering), FPO (Follow on Public Offer ), Preferential Issues, Rights Issues, QIP (Qualified Institutional Placement), and Debt Placement. The idea is to help big organizations expand in the long run and advise them on various strategies.
- Debt Syndication: When a company is looking to finance new opportunities, they mostly don’t have enough cash to go for it. However, if they talk to investment bankers, they can help them with project finance, term loan, external commercial borrowing, etc. These services facilitate the public and private companies to tap into the right opportunities at the right time and ensure solid growth.
Types of investment banks
There are 4 types of investment banks as follows
1. Regional Boutique Investment Banks
These are the smallest banks. They also provide services concentrated in a specific region. They frequently get into agreements with tiny local companies. The regional boutique investment bank’s usual deal size is less than $10 million. As specified earlier they have a restricted geographic reach. They don’t require competencies like public problem management or mergers and acquisitions advising because they work with smaller companies. They usually assist businesses with loan financing. These banks have a small workforce.
2. Elite Boutique Investment Banks.
These banks offer a full range of services but also have specialization in some aspects. They don’t participate in every activity available at bulge bracket businesses. Some of these high-end boutiques will specialize in a single industry. For example, they provide services specializing in oil and gas M&A transactions.They work on deals that are around the same magnitude as those done by mid-market companies. In reality, the deal sizes can occasionally rival those of bulge-bracket corporations.
3. Full-service or Bulge Bracket Investment Banks
An investment bank that offers a full range of investment banking services. Buying and selling, M and A securities services, financial advisory, research, etc. Goldman Sachs, Morgan Stanley, and Credit Suisse are examples of such banks. These companies already have significant commercial interests in retail banking, mortgage lending, and other areas of consumer and corporate banking. This sets them apart in the market. The word “bulge bracket” has no universally accepted meaning. However, it is most commonly used to refer to well-known global investment banks in most regions of the world. Bulge brackets are pretty finicky about who they do business with. They are generally only involved in deals if the deal size is over $1 billion.
4. Middle Market Investment Banks
They are larger than regional boutique banks but not as large as bulk bracket banks. These banks either provide a wide range of services or focus on specific aspects. They may provide services in more than one state or region, but they are not multinational. The names of mid-market investment banks aren’t well-known. But frequently have extensive investment banking expertise and are well-known in the financial community. The range of services they provide is fairly comparable to what bulge bracket businesses do. They have a smaller geographic spread. Mid-market investment banks are frequently focused in one geographic period. It’s possible that they have many offices in the same nation or region. They do not, however, have a presence on the international level. Medium-sized businesses are the primary users of their services.
Savings is a good option when you want your money to be in one place and available anytime you need it in urgency. Also, savers tend to save their money in a low-risk bank account where they can maximize their money hence, they should opt for the highest annual percentage yield savings account available. Contrary to savings, Investments have a certain level of risk involved and are available in the form of mutual funds, stocks, etc. Investments involve a third person, referred to as a “broker” who guides you to buy or sell as per best fit.
The fundraising process demands documents to pitch investors. Scaalex specializes in building investor focussed Financial modelling, Valuation report, Business Plan and Due Diligence reports. Talk to our experts to learn more about the fundraising process.
Q1. What is the difference between savings and investment?
Investment means the money that you invest your savings in some plans for gaining profit. It can be long-term savings. Whereas savings means the amount left out of your salary after spending your monthly income.
Q2. Are there any tips for investing?
Actually yes.The main tips to keep in mind before investing are:
- Make a plan before investing
- Study the stock market before investing to reduce risk
- Figure out the risk and amount of loss that you can bear and plan accordingly
- Try different types of investment for diversity and not depend on one only
- Investment should be done regularly and not all at once to avoid losing all of it
Q3. Why investment is important?
Investments give much more return than savings accounts or fixed deposits. You may get high or low returns depending on the scheme and conditions of the share market if it’s regarding stocks. Acts as an aid in achieving your dreams.
Next: Check out our blog on International investment banks in India