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Merchant Banks useful for students

1. Merchant banks
By
V.CHANDRU

2. What is merchant bank ?
A merchant bank is a financial
institution that conducts
underwriting, loan services,
financial advising, and
fundraising services for large
corporations and high-net-
worth individuals

3. How it works ?
Merchantbankersactasintermediaries
betweentheirclientsandfinancial
markets,helpingclientstoraisecapital,
managerisks,andinvestwisely.

4. Functions

5. UNDERWRITING SERVICES
Theyunderwritesecuritiesissues,
meaningtheyguaranteetobuyany
unsoldsharesinaninitialpublic
offering(IPO)orbondissue.

6. CORPORATE FINANCE ADVISORY
Merchant banks provide advice on
mergers and acquisitions (M&A),
capital restructuring, and raising
capital through equity or debt issues.

7. SYNDICATION OF LOANS
Merchant banks help arrange
large loans by forming a
syndicate of banks and
financial institutions to spread
the risk.

8. PROJECT APPRAISAL AND FINANCE
They evaluate the
feasibility of projects and
provide finance or funding
arrangements.

9. PRIVATE EQUITY AND VENTURE CAPITAL
Merchant banks invest in and provide
advice to startups and growing
companies, often through private
equity or venture capital.

10. ASSET MANAGEMENT
They manage investments for
clients, including managing mutual
funds or discretionary portfolios.

11. ADVISORY SERVICES FOR HIGH NET
WORTH INDIVIDUAL
Providing investment advice, estate
planning, and other financial services
to wealthy individuals.

12. RISK MANAGEMENT
They offer hedging
strategies and risk
management solutions for
their corporate clients.

13. Thank you