Swastika
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Merchant Banking

Merchant Banking

Introduction to Merchant Banking

Many of you might have not heard the term Merchant Banking.

Where other banks offer credit facilities to their customers, merchant banking such as Swastika offers different services such as IPO launching, SME & Startup funding, Venture capital funding, Angel investments, Valuation of shares, Mergers & Acquisition for clients and more.

What is Merchant Banking in India?

The primary function of merchant banker is managing the IPO’s by making arrangements and help the company to raise the capital from public markets. As manager to the issue it also act as an advisor, consultant thus merchant banker is a critical link between a company raising funds and investors.

Easy & hassle-free Merchant Banking services offered to corporate and SMEs, & Startups for private equity, funds and investments.

Services of merchant banks involve pre-counselling activities, issue management, Equity Funding & loan syndication, underwriting, SME IPO launching and more.

How Do Merchant Banks Different From Commercial Banks?

Understanding the differences between the two banks is of utmost importance as it helps to understand Indian Merchant Banking compared to other banks.

  1. Merchant Banks are regulated and registered by SEBI and other Commercial Banks are regulated by Banking Regulations Act, 1949 and registered with RBI.
  2. Merchant banks do not allow anyone to open an account, but commercial banks are available to everyone.
  3. Merchant banks usually do business in stock and securities of Company, but commercial banks usually buy and sell debt-related financings such as loan approvals and loan proposals.
  4. While main activities of merchants bankers are Managing Issues (IPOs and FPO), underwriting, other events in the corporate like mergers & Takeover, ESOPs planning, enterprise valuations, etc. , commercial banks primarily serve basic functions of bank accept deposits lending money etc.

Difference Between Merchant Banking and Investment Banking

Investment Banking and Merchant Banking are almost the same, although there is a slight difference between them.

Merchant Bankers offer services like bridge financing, equity financing, mezzanine financing etc.

Investment banker like Swastika Investmart, on the other hand, has wider scope then merchant banking.

The clientele of Investment Banks is quite large as compared to Merchant banking.

Under our Merchant banking segment we offer services such as underwriting, Market Maker, Transections in securities, SME IPO launching of SME and main Board IPO/ FPO migration from SME to Main Board.

In addition to this, Investment bankers also advise their clients on mergers and acquisitions, Startup funding & mentoring, Private equity, capital restructuring, Venture funding, ESOPs scheme and more.

Functions of Investment Banking

1. Raising Funds For Clients

Merchant Banking companies such as Swastika helps clients in raising funds from domestic and international markets.

Merchant banks raise funds by issuing securities like shares, debentures and more.

2. Leasing Activities

Merchant Banking services offer leases to their customers by coordinating the operation of intermediaries, concerning the issue of shares like underwriters, bankers, brokers, advertising agencies.

Also, it ensures compliance with the rule and regulations of the capital market.

3. Corporate Restructuring

Corporate restructuring involves mergers and acquisitions of existing businesses, sales or mergers of existing business units.

The process of corporate restructuring is very lengthy and complicated as it requires proper documents, negotiations, and the approval of legal authorities.

4. Money Market Operation

Merchant bank handles short-term money market instruments such as government bonds, certificates of deposits, treasury bills, certificates of deposits, commercial paper etc.

Merchant bank is a skill-oriented professional service provided to clients, concerning their financial needs, for adequate consideration, in the form of a fee.

The notification of the Ministry of Finance in India defines Merchant Banker as “any person who is engaged in the business of issue management either by making arrangements regarding selling, buying, or subscribing to the securities as manager, consultant, adviser about such an issue management”.

In general, merchant banks are financial institution that provides financial services, solutions, & advice to corporate houses. As Merchant Banking partners, we cater to the needs of corporate firms.

Services Provided by Merchant Banks

These are the following services provided by Merchant Banking Partners for you

  • Project Counseling
  • Management of debt and equity funding
  • Issue Management
  • Managers, Consultants or Advisers to the Issue
  • Underwriter and Market Maker of Public Issue
  • Restructuring strategies
  • Off Shore Finance
  • Non-resident Investment
  • Loan Syndication
  • Corporate Counseling and advisory services
  • Placement and Distribution

Corporate counselling involves the entire field of merchant banking activities such as project counselling, capital restructuring, public issue management, loan syndication, working capital, fixed deposit, lease financing acceptance credit, etc.

Merchant Banking assists several companies in managing their lease, portfolio, and raising fund capital. These banks function in a different way than other banks.

If you are seeking a merchant banking services that fulfils small size and mid-size companies, Swastika Investmart comes second to none.

Swastika - As a Merchant bank

Swastika Investmart is a leading Merchant Bank of India, which aims to provide high-quality services to its clients.

Merchant bankers also provide customized solutions to their client’s financial problems.

Apart from this they also explore the refinancing alternatives of the client and evaluate cheaper sources of funds. Rehabilitation and turnaround management is another area of advice.

A merchant banker such as Swastika advises the client on different risk mitigation and growth strategies and suggests the appropriate action plans.

For the Merchant Banking Services, try Swastika Investmart Ltd to manage your Wealth Profile. Click here to open an account or feel free to Contact Us

S. No. Company Name Issue Size Opening Date Document Status
1 TRANSWIND INFRASTRUCTURES LIMITED 729.00 LACS 2017-06-01 IN PROCESS
2 TRANSWIND INFRASTRUCTURES LIMITED 729.00 LACS 2017-06-23 LISTED ON 12.07.2017
3 RELIABLE DATA SERVICES LIMITED 1482.00 LACS 2017-08-28 IN PROCESS
4 RELIABLE DATA SERVICES LIMITED 1482.00 LACS 2017-09-20 LISTED ON 11.10.2017
5 MILTON INDUSTRIES LIMITED 1428.00 LACS 2017-08-29 IN PROCESS
6 MILTON INDUSTRIES LIMITED 1428.00 LACS 2017-09-22 LISTED ON 16.10.2017
7 SHARIKA ENTERPRISES LIMITED 1386.75 LACS 2017-10-13 IN PROCESS
8 SHARIKA ENTERPRISES LIMITED 1386.75 LACS 2017-11-08 LISTED ON 27.11.2017
9 ZODIAC ENERGY LIMITED 1014.00 LACS 2017-10-17 IN PROCESS
10 ZODIAC ENERGY LIMITED 1014.00 LACS 2017-11-17 LISTED ON 05.12.2017
11 INNOVANA THINKLABS LIMITED 770.00 LACS 2017-08-30 IN PROCESS
12 INNOVANA THINKLABS LIMITED 770.00 LACS 2017-11-20 LISTED ON 12.12.2017
13 SOLEX ENERGY LIMITED 717.60 LACS 2017-12-05 IN PROCESS
14 SOLEX ENERGY LIMITED 717.60 LACS 2018-01-12 LISTED ON 05.02.2018
15 INFLAME APPLIANCES LIMITED 648.00 LACS 2018-02-05 IN PROCESS
16 INFLAME APPLIANCES LIMITED 648.00 LACS 2018-02-23 LISTED ON 16.03.2018
17 RIDINGS CONSULTING ENGINEERS INDIA LIMITED 655.20 LACS 2018-01-29 IN PROCESS
18 RIDINGS CONSULTING ENGINEERS INDIA LIMITED 655.20 LACS 2018-02-23 LISTED ON 26.03.2018
19 INDO US BIO-TECH LIMITED 729.30 LACS 2018-03-05 IN PROCESS
20 INDO US BIO-TECH LIMITED 729.30 LACS 2018-04-06 LISTED ON 11.05.2018
21 MEGASTAR FOODS LIMITED 804.00 LAKHS 2018-04-26 IN PROCESS
22 MEGASTAR FOODS LIMITED 804.00 LAKHS 2018-05-07 LISTED ON 23.05.2018
23 BRIGHT SOLAR LIMITED 1944.00 LACS 2018-04-09 IN PROCESS
24 BRIGHT SOLAR LIMITED 1944.00 LACS 2018-06-14 Listed on 09.07.2018
25 SYNERGY GREEN INDUSTRIES LIMITED 2646.00 Lakhs 2018-06-01 IN PROCESS
26 SYNERGY GREEN INDUSTRIES LIMITED 2646.00 Lakhs 2018-08-24 LISTED ON 24.09.2018
27 AARTECH SOLONICS LIMITED 720.80 LACS 2018-09-10 IN PROCESS
28 AARTECH SOLONICS LIMITED 720.80 LACS 2018-03-07 Listed on 27.03.2019
29 TRACK RECORD OF PROLIFE INDUSTRIES LIMITED - 2020-05-18 -
30 TRACK RECORD OF SANGINITA CHEMICALS LIMITED - 2020-05-18 -
31 TRACK RECORD OF AIRAN INDUSTRIES LIMITED - 2020-05-18 -
32 TRACK RECORD OF SIKKO INDUSTRIES LIMITED - 2020-05-18 -
33 TRACK RECORD OF RELIABLE DATA SERVICES LIMITED - 2020-05-18 -
34 TRACK RECORD OF MILTON INDUSTRIES LIMITED - 2020-05-18 -
35 TRACK RECORD OF SHARIKA ENTERPRISES LIMITED - 2020-05-18 -
36 TRACK RECORD OF ZODIAC ENERGY LIMITED - 2020-05-18 -
37 TRACK RECORD OF INNOVANA THINKLABS LIMITED - 2020-05-18 -
38 TRACK RECORD OF SOLEX ENERGY LIMITED - 2020-05-18 -
39 TRACK RECORD OF RIDING CONSULTING ENGINEERS INDIA LIMITED - 2020-05-18 -
40 TRACK RECORD OF INFLAME APPLIANCE LIMITED - 2020-05-18 -
41 TRACK RECORD OF INDO US BIO-TECH LIMITED - 2020-05-18 -
42 TRACK RECORD OF MEGASTAR FOODS LIMITED - 2020-05-18 -
43 TRACK RECORD OF BRIGHT SOLAR LIMITED - 2020-05-18 -
44 TRACK RECORD OF SYNERGY GREEN INDUSTRIES LIMITED - 2020-05-18 -
45 TRACK RECORD OF AARTECH SOLONICS LIMITED - 2020-05-18 -
46 POLICY FOR MERCHANT BANKING ACTIVITY - 2018-01-01 -
47 Complaints Status_Investment Advisory - 2019-12-31 -
48 RICHA INFO SYSTEMS LIMITED 10 Cr. 2022-02-09 Prospectus
49 Investors Complaints Data - 2022-01-01 -
50 SONU INFRATECH LIMITED - 2022-01-28 Draft Prospectus_Pending for in-Principle approval
51 RICHA INFO SYSTEMS LIMITED 10 Cr. 2022-02-08 General Information Document, Abridged Prospectus and Forms
52 Evoq Remedies Limited 9.72 Cr. 2022-02-24 Draft Prospectus_Pending for in-Principle approval
53 Past Issue by Swastika - 2022-03-30 -
54 Evoq Remedies Limited 9.72 Cr. 2022-03-17 General Information Document, Abridged Prospectus and Forms
55 Evoq Remedies Limited 9.72 Cr. 2022-03-17 Prospectus
56 Cyber Media Research and Services Limited - 2022-04-04 Draft Prospectus_Pending for in-Principle approval

Frequently Asked Questions

There are two types of merchant banking: Public Sector Merchant Banks and Private Sector Merchant Banks.

Public sector merchant banks include commercial banks, national financial institutions, state financial institutions.

Private Sector Merchant banks include foreign banks, Indian private banks, leasing banks, finance and investment companies.

A service provider financial institution changed into traditionally one that dealt in industrial loans and investment.

It's number one cause was to facilitate and/or finance the manufacturing and alternate of commodities, subsequently the adoption of the Old French “merchant banking” which in flip derives from the Latin word “mercari” meaning “to alternate”.

The merchant bank is the one that supports the underwriting of securities.

Merchant banks play an important role and have many responsibilities such as managing issues like IPO and FPO, private placement of securities, Take over, ESOPs, , and international financial advisory services.