Post Graduate Programme in Management

2016-17
TERM: VI
Title of the Course: INVESTMENT BANKING
Credits: 02
Instructor:
Prof. Yogesh Maheshwari

Course: Elective
E-mail:
maheshwari@iimidr.ac.in

Tel. No.:
2439521

No. of Sections: 02
Faculty Block and Room No.:
A-109

COURSE DESCRIPTION
This elective course in finance is structured to equip the participants with an
understanding of the ever-evolving field of investment banking. Investment banking as
a subject has seen volatile times given the fact that it relates itself so closely to its
practical applications in the financial markets. Despite the natural uncertainty in the
markets, the importance of investment banking is only poised to grow in the times to
come.
COURSE OBJECTIVES
The course aims at providing the participants with the following:

an insight into the development of investment banking,

underpinnings of financial markets and investment banking, and
knowledge of different investment banking functions.

PEDAGOGY/TEACHING METHOD
The pedagogy would consist of an appropriate mix of lectures, cases and discussions.
EVALUATION
Class Participation
Project/Assignments/Case Analysis
End Term Examination
Total

Weightage
20%
40%
40%
100%

SCHEDULE OF SESSIONS
Module I
Module Objective
Sessions and Objective
Session 1: Investment Banking and its Environment
Objective: To introduce investment banking and the environment in which it
operates.
Reading: Nanda, A., Delong, T., & Lynn V. R., (2012), History of Investment Banking,
HBS: 9-902-168, Harvard Business School Publishing, Boston.
Session 2: Business Model of an Investment Banking Firm
Objective: To understand the business model of an investment bank.
Case: Baker M., & Barley L., (2006), Investment Banking at Thomas Weisel Partners,
HBS: 9-206-091, Harvard Business School Publishing, Boston.
Session 3: Financial Advisory and Capital Market Services - I
Objective: To identify the issues involved in arranging venture capital for a firm.
Reading: Ghalbouni, J., & Rouzies, D., (2010), The Venture Capital Shakeout, Harvard
Business Review, July-August 2010.
Case: Roberts, M. J., & Barley, L., (2004), How Venture Capitalists Evaluate Potential
Venture Opportunities, HBS: 9-805-019, Harvard Business School Publishing, Boston.
Session 4: Financial Advisory and Capital Market Services - II
Objective: To comprehend the role of an investment bank in managing the public
issue of securities.
Reading: Kaplan, R. S., & Grossman, A. S., (2010), The Emerging Capital Market for
Nonprofits, Harvard Business Review, October 2010.
Case: Lerner, J., (1997), ImmuLogic Pharmaceutical Corporation (A), HBS, 293066,
Harvard Business School Publishing, Boston.
Session 5: Equity Research Services
Objective: To assimilate equity research function of an investment bank.
Case: Nanda, A., & Groysberg, B., (2007), Lehman Brothers (C): Decline of the Equity
Research Department, HBS: 9-902-003, Harvard Business School Publishing, Boston.
Session 6: Institutional Sales and Trading Services
Objective: To learn the constituents of the institutional sales and trading services of
an investment bank.
Case: Royce, J., (2005), Gonchar Investment Bank, 905M29, Ivey Publishing, Ontario.

Session 7: Project and Strategic Advisory Services

Objective: To appreciate the complexities of syndicating a term loan for a project/
strategic initiative of a firm.
Case: Esty, B. C., (2003), Chases Strategy for Syndicating the Hong Kong Disneyland
Loan (A), HBS: 9-201-072, Harvard Business School Publishing, Boston.
Session 8: Corporate Restructuring Advisory Services
Objective: To understand the issues impacting and arising out of a corporate
restructuring exercise of a firm.
Case: Palepu, K., & Barnet., J., (2004), Hewlett Packard Compaq: The Merger
Decision, HBS: 9-104-048, Harvard Business School Publishing, Boston.
Session 9: Debt Restructuring Advisory Services
Objective: To gain knowledge of the debt restructuring process and the factors
relating therein.
Case: Suzlon Energy Limited
Session 10: Investment Banking: Challenges and Evolution
Objective: To appreciate the challenges faced and the resultant evolution of
investment banking and consolidate the learning from the course.
Case: Lal, R., & Mazzanti, L., (2014), Goldman Sachs: Anchoring Standards after the
Financial Crisis, HBS: 9-514-020, Harvard Business School Publishing, Boston.
Additional Readings
TEXT/REFERENCE:
1.
Geisst Charles R, Investment Banking in the Financial System, Prentice Hall
Inc., New Jersey.
2.
Scott-Quinn Brian, Investment Banking: Theory and Practice, Euromoney Books.
3.
Fabozzi, Frank J., Franco Modigliani, Frank J. Jones and Michael G. Ferri,
Foundations of Financial Markets and Institutions, Third edition, Prentice Hall
Inc., New Jersey.
4.
SEBI ICDR Regulations.
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