Wednesday, 6 July 2016

Significant Role of Investment Banking For Startups in Kolkata

The startup scene is thriving in India. But so is the competition in this space. And this makes it significant that new entrepreneurs, irrespective of their niche, outsource the services of investment banking to make the most sane and efficient financial decisions and moves.

Confused how investment banking can and will really help you? Or what is their exact role or function? Here are few important ways they play messiah for new (and old) businesses.

When you decide to take it public… they underwrite

One of the biggest functions of investment banks in Kolkata is to underwrite shares and bond. In the Initial Public Offering (IPO) they do a complete valuation of their client’s company and they underwrite the shares and bonds accordingly. If the valuation is high, they usually syndicate with other investment banks and arrange for the required capital. 

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They also act as an intermediary between the clients and stock exchange. 

When financially confused… they advise

Every business faces some kind of financial obstacle on the journey- some more than others. Investment bankers in Kolkata extend their services and offer their expert advice to their clients during dark times. What type of securities to purchase, what types to sell, what kind of assets to invest in and from who to stay away from. With their advice, they pillar-up the financial structure of the companies and shorten their span of ‘downturn period.’ 

During merger and acquisition… they represent (the clients)

To raise capital with mergers and acquisition, the investment banks in Kolkata represents their clients. They contact the bidders on the clients’ behalf, coordinate and negotiate with them and then finalize the deal. They also work at the legal-end of such merger and acquisition, ensuring their clients faces no legal obstructions and the whole process is rather smooth.

Their other services include merchant banking, researching and risk management.

Tap on the professional banking services in Kolkata

Today you will find many investment bankers in Kolkata and across India. All you have to do is conduct a thorough research to pick a right one who serves your specific industry. They are more than happy to help you scale your business. You just have to be prepared with a winning answer to “why investment banking?”

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