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Showing posts from November, 2019

Role of Investment Banks in Mergers and Acquisitions

The Mergers & Acquisitions deal value in the Indian market clocked more than $41 billion in the first half (January-June, 2019). US-based businesses accounted for more than a quarter of all inbound investments into India during the period, followed by those from Japan and China. The M&A space in India is primarily led by private deals. A business might choose to merge with or take over another in order to inorganically gain access to new markets, cutting-edge technologies and top-end talents, as well as in the form of ramping up revenue. Shares of stock-market-traded companies are openly bought and sold in public view with transparency. Besides, listed businesses are subject to mandatory public disclosures of all their material information such as board decisions, operational details, data on top management (e.g., remunerations), and audited financial statements. Besides, these companies are always on the radar of equity research analysts and the media. In contrast

Workings of the Indian Capital Market: An Inside-Out View

The Indian capital market comprises the sum total of all the buyers and sellers – both individuals and institutions – who trade in various kinds of certificates or financial instruments that carry a certain monetary value. Such financial instruments are broadly classified into equities and debt securities. Equity: This is the value of shares issued by a company to an individual or institution and indicative of her/his ownership in the company. A portion of the company’s profits is distributed annually to shareholders in the form of dividend. Where shareholders sell their equity at a price higher than their purchase price, they also benefit in terms of capital gains, which is taxable. Equities do not return any fixed interest. Debt-based security: This takes the form of government bonds, municipal bond, corporate bonds, certificate of deposit, debenture, promissory note, or preferred stocks whose holders have a right to fixed dividends. The issuer of a debt instrument promise