Posts

Showing posts with the label Merchant Banking

Why Did Paytm Stock Fall Sharply On The First Day Itself?

Image
  India’s leading digital payments system company Paytm made history after successfully launching India’s biggest ever IPO in the current month. As per the sources, the total worth of this public offering was Rs 18,300 Crores with the fixed price band at Rs 2080 to Rs 2,150 for each share.  The company hit headlines when the shares of the company made their market debut after much anticipation on Thursday at a 9 per cent discount. Against the expectations, Paytm stock listed at Rs 1,955 dropped 9% from its issue price on the BSE. After some hours, the stock prices declined further and reached Rs 1,564 a share (a drop of 27.25%) & hit the lower circuit limit at the end of the day trade.  It has been seen that Paytm’s market capitalization dropped to about $13.6 billion from its IPO valuation of $20 billion.  Here comes a question: How did India’s greatest IPO fail to give an outstanding performance? Let’s figure it out. High Valuation  Led to Losses for the I...

Merchant Banker

  “Any person who is engaged in the business of issue management either by making arrangements regarding selling, buying or subscribing to securities as manager-consultant, advisor or rendering corporate advisory services in relation to such issue management” -SEBI Merchant Bankers rules 1992 What is a Merchant Bank?? A merchant bank is a monetary organization that basically manages commercial banking needs of worldwide money, long haul credit for organizations, gives counseling services and endorsing of stock. It additionally goes about as a middle person between the issuers and definitive buyers of the securities in the essential market. Despite the fact that the State Bank of India is the primary establishment to set up a different division for merchant Banking administrations in 1972, its services were begun in 1967 by National Grind lays Bank subsequently followed by Citi Bank in 1970. The fundamental contrast between merchant banking and business banking is, business banking ...

Learn Everything about Merchant Banking

  What is a Merchant Bank? In modern terms, merchant banks are a monetary organization or financial institution, primarily known for investing equity capital in business, SMEs, provide advisory services and endorsing of stock.  Also, it acts as an intermediary between the issuers and buyers of various financial securities in the market.  A merchant bank offers the same facility an investment bank does.  Merchant banks primarily deal with the small and mid scale enterprises that are unable to raise funds through IPO.  The research analysts work at merchant bank, hold a master degree in stock market, as they did numerous  stock market courses  for better understanding of the stock market.  The bank here offers a platform especially for SMEs so that they can raise a fund directly in the public. Such a process is known as   SME IPO . They also issue and sell securities on behalf of corporations through private placements to refined investors who ...

Top Notch Services Offered by Merchant Banking

  Many of you might have not heard the term Merchant Banking. Where other banks offer credit facility to its customers, merchant banking, on the other hand, offers different services such as portfolio management, IPO launching, loan syndication, raising funds for clients and more. In this blog, we will discuss the services offered by Merchant Banking . Before that let's understand the clear concept of merchant banking.  Merchant Banking is a service offered by merchant bankers to its clients in terms of fulfilling their financial needs, raising funds for them and more. Merchant banking is specialists in international trade and hence they get experience in trading with large enterprises.  Services of Merchant Banking involves pre-counselling activities, issue management, loan syndication, underwriting, SME IPO launching and more.  Difference between Merchant Banking and Investment Banking Investment Banking and Merchant Banking are almost the same, although there is a...