Course Policy Investment Banking

Mukesh Patel School of Technology Management & Engineering

School of Technology Management and Engineering

Course Policy Document

Course Name - (Code): Investment Banking (703TF0E002)

Program and Semester: MBA Tech/VII Pre-requisite Course : None

L T P C H
3 0 0 3 3
Academic Year: 2024-25 Credit Details:

Name of Course Faculty: Dr. Kalyani

Mulchandani Faculty associated with the course: -
Program: MBA Tech, Mumbai Campus 1. Dr. Suman Chakraborty
Contact Details: 2. Prof. Dimple Pandey
[email protected]
Office Hours:
Pre-Course Activity:
Using GenAI, explore the following:
1. Relevance of Investment Banking in financial market.
2. Identify how this course will help you in your career goal

Course link:

1. Introduction to the Course

1.1 Importance of the Course
1.1.1 Domain Relevance:

Investment banking is vital to the financial industry, offering services that help
businesses, governments, and institutions raise capital and engage in mergers and
acquisitions (M&A). Investment banks assist companies in raising funds through
equity and debt financing by issuing stocks, bonds, or other financial instruments.
They play a key role in M&A by advising on deal structures, facilitating
negotiations, and ensuring smooth execution of complex transactions. Additionally,
investment banks provide financial advisory services, market insights, and risk
management solutions, making them indispensable in managing large-scale
financial operations and fostering economic growth.
Course Policy Investment Banking

1.1.2 Industry Relevance:

The investment banking industry is highly relevant to the global economy, as it
facilitates essential financial activities that drive corporate growth, innovation, and
economic development. By assisting companies in raising capital through equity and
debt markets, investment banks help fund expansion, research, and infrastructure
projects. They also play a crucial role in mergers and acquisitions (M&A), providing
strategic advice and helping businesses navigate complex financial deals.
Additionally, the industry supports market liquidity and risk management through
services such as underwriting, trading, and asset management. Overall, investment
banking is key to efficient capital allocation and economic stability, influencing
industries, governments, and financial markets worldwide.
1.1.3 Objectives of the Course:
1. Understand the role and services offered by Investment Banks

2. Examine the structure and functioning of investment banking in India.

2. Course Outcomes (CO), Mapping with Program Outcomes (PO), and Program
Specific Outcomes (PSO)
2.1 Course Outcomes

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 Program Outcomes(PO) the course contributed to:

PO-1: An understanding of global practices impacting organizations
PO-2: Critical thinking skills
PO-3: Understanding Business Domains and Integration with Technology
PO-4: Effective communication skills
PO-5: An understanding of ethical business models
2.3 CO-PO Mapping

Program Learning
Goal 1: Program Program Learning Goal Program Program
An understanding 3 – Understanding Learning Goal Learning Goal 5:
Learning Business Domains and 4- Effective An
of global practices
impacting Goal 2: Integration with communicatio understanding of
 Course Policy Investment Banking

organizations
Critical Technology n skills ethical business
thinking skills models

CO1 3
CO2 3
CO3 3

Mapping Levels: 1- High, 2-Medium, 3-Low

3. Teaching-learning methodology
3.1 Instruction Plan

Assess
Teach COs ment
Lectu Topi Blooms Resour
ing mapp and
re cs Level ces
Metho ed Evaluat
No.
d ion
1 Overview of Investment Discussion Understa Chapter 5 1,2 M1, TEE
Banking nd
Meaning, Services/Functions
of Investment Banking

Regulatory/Structure of
Investment Banking
2 Money Markets Discussion, Apply Handouts 1 M1,TEE
Structure and role of Money Numericals
Markets in India and globally

New Money Market

Instruments-Call Money,
Commercial Paper, Term
Money, Notice Money,
Treasury Bills, Gilt-edged
Securities, Certificate of
Deposit, repos

3 Money Markets Discussion, Apply 1,2 M1,TEE

Numericals Handouts
Bills Rediscounting, Inter
Bank Participation
Certificates etc.
Course Policy Investment Banking

Valuation of Commercial
Papers, Certificate of
Deposits & Treasury Bills,
Repurchase Orders

Regulatory authorities,
guidelines and regulations of
Money Market.
Capital Markets Discussion, Apply Chapter 1 1 M1, TEE
4 Numericals and
Significance of Indian and handouts
Global Capital markets
TB1
Capital Markets v/s Money
Markets

Valuation of Right Issue

Players-Investors and
Companies

Primary and Secondary

Markets in India and abroad

Current Developments
5 Primary Markets Discussion Apply Chapter 7 2, 3 M2,
&8 Project
Procedural aspects and Due Work,
Diligence of prospectus or
Letter of offer TEE

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 Discussion, Apply Chapter 7 3 M2,
Management Numericals, Project
Pricing of various fund caselets TB1 Work,
Course Policy Investment Banking

raising instruments Net Asset TEE

Value Method, Book-
building, Book-building
through on-line Initial Public
Offering (IPO)

Reverse Book-building
7 Domestic Issue Discussion, Apply Chapter 7 2,3 M2,
Management Numericals, Project
caselets TB1 Work,
Eligibility to Issue Securities TEE
Fixed v/s Book-building
process

Exchange Traded Funds, its

varieties and guidelines

Basis of Allotment of Shares

8 Buy-backs and Delisting of Discussion, Analyse Chapter 2,3 TEE
Shares Numericals, 12
Introduction to Share caselets
Repurchase or Share Buy- TB1
backs

Delisting of Listed
Companies
9 Private Equity & Discussion Apply Chapter 3 TEE
Placement 10 &11

Assessment of Private
Placement
Chapter 9
Instruments used in Private
Placement

Private Equity and Venture TB1

Capital

International Markets
Instruments, Players,
American Depository
Receipts, Global Depository
Receipts and valuation
10 International Markets Discussion, Apply Chapter 9 3 TEE
Indian Depository Receipts caselets &2
External Commercial
Borrowings
Foreign Currency TB1
Convertible Bonds
Course Policy Investment Banking

Foreign and Euro Bonds,

characteristics, Advantages
and Disadvantages
Procedure for Issue of
Instruments and their costs
Offshore Fund Arrangement
Loan Syndication

4. Assessment and Evaluation Scheme

Internal Continuous Assessment (ICA) (50 Marks)

Class Tests (20 Marks) Term Work-Group Project (30 Marks)
Assessment Class Test-1 Class Test-2 Project Report Presentation
Component
Marks 10 10 20 10

Timelines (7th October (18th

November 23rd November 2024 23rd November 2024-
2024-12th 2024-23th 30th December 2024
October 2024) November
2024)

Project Description:
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 2022 or first
half of 2023. 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 and presentation

OBJECTIVE: The objective of this assignment is to enhance students' understanding of the

Course Policy Investment Banking

Initial Public Offering (IPO) process by analyzing a real IPO from 2022 or early 2023.
Through a detailed review of the prospectus, students will assess risk factors, financial
performance, shareholding patterns, and pricing strategies. The project encourages the
application of statistical techniques for financial evaluation. It aims to develop analytical
skills related to IPOs and provide insights into industry and company dynamics.

OR
About the project:
a. Faculty will make group of 5 or 6 students
b. The group project on Event Study of Follow-on Public Offers (FPO) in Indian
companies is crucial for understanding how financial markets react to
corporate actions. It allows students to analyze the impact of FPO
announcements on stock prices and investor sentiment. This live project,
where the students will download the live data from a website to showcase
their learnings and skills to provide insights into market efficiency, price
discovery, and the behaviour of investors in response to capital-raising events.
By applying event study methodologies to real-world data, students develop
practical skills in financial analysis, learn how corporate decisions influence
shareholder wealth, and gain a deeper understanding of the Indian capital
market's efficiency.

c. Statistical techniques can be employed for financial evaluation.

d. Students may download data from moneycontrol/yahoofinance.
e. Assessment will be based on the Project report and presentation

4.1 Internal Continuous Assessment (ICA) – 50 marks

Class Test-1 conducted in the 4th week. It will be for 10 marks (30 Minutes-duration).
Class Test-2 conducted in the 10th week. It will be for 10 marks (30 Minutes-
duration). Term Work will have a weightage of 30 marks for ICA. Report submission
is required on time. Penalty will be levied for late submissions.
4.2 Term End Examination (TEE) – (50 Marks)
TEE conducted at the end of the semester will be for 50 marks (2-hour duration).
There will be 7 questions (each question will be 10 marks). Q1 will be compulsory
and any 4 from the remaining to be solved.
4.3 Course Passing Criteria
4.3.1 ICA (50 marks) – No minimum marks
4.3.2 TEE (50 marks scaled to 50) – 40% required for passing
Course Policy Investment Banking

4.3.3 (ICA + TEE) (100 marks) - 40% required for passing

4.4 Assessments and Mapping to Course Outcomes

Internal Continuous Assessment (ICA) Term End

Examination
(TEE)
Course MT-1 MT-2 Term Work TEE
Outcomes
CO-1 Y Y
CO-2 Y Y
CO-3 Y Y Y

5. Tutorial Plan

This course does not have any tutorial.

6. Course Material

Text Book
1. Subramanyam, P.G., Investment Banking 4th Edition, New Delhi, Tata Mc Graw Hill-
latest re- print, 2021

Reference Books

1. Bhole, L.M., Financial Institutions and Markets , 5th Edition, New Delhi, Tata
McGraw Hill, 2009.
2. Pathak, B. V., The Indian Financial System , 3rd Edition, New Delhi, Pearson, 2013.

References and relevant material will be uploaded on MSTeams by faculty every week.

7. GenAI Usage
7.1 Pre-class Activity:
 Reading about the relevance of each topic for discussion in the class.
7.2 In-Class Activity:
Use GenAI to find understand the role of investment banker in the issue activities.
7.3 Assignments
GenAI is not to be used for doing Assignments given by faculty.
Course Policy Investment Banking

7.4 Challenging Problems

GenAI is permitted to be used. Students need to cite the references used.

8. Academic Integrity Statement

Original work expected from students for all of the assigned assessment work. Copying in
any form 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.

* - Only Teaching Method in the Instruction Plan for the course may vary for different
faculty teaching the course, rest of the Course Policy Document will not change.