INVESTMENT BANKING

Issue Management
Topics

Sub-Topics

Recommended
Study Time

IPO Process - Overview: Role of registrar, SEBI guidelines

Initial Public Offering Issuance Process

for IPO eligibility, IPO grading, Draft Red Herring Prospectus

(DRHP), Listing agreement, Pricing the issue, Book building

4 Hours

process, Allotment.

SEBI Guidelines - Key features & contents of offer

Drafting the Offer Document

document

2 Hours

Marketing : Road shows, Pre-issue advertisements

Launch and Completion of Issue: IPO announcement,
Book building process, Dutch Auction/French Auction, ProMarketing, Launch &
Completion of Issuance

rata allotment, Filing the offer document with ROC.

Post Issue Activities: Investor grievances redressal, Post-

4 Hours

issue Monitoring Report to SEBI.

QIP Issue : SEBI guidelines for QIP issue
Rights Issues & Bonus Issues: SEBI guidelines

Types of DRs : American Depository Receipts (ADRs),

Global Depository Receipts (GDRs), European Depository
Types of Depository Receipts
(DRs)

Receipts (EDRs), Indian Depository Receipts (IDRs)

ADR Structure : Sponsored level 1 ADRs, Sponsored level 2 2 Hours
ADRs, Sponsored level 3 ADRs
Tax Treatment : Taxation on ADR investments

Participants involved in ADR/GDR Issuance

ADR Norms in India : Norms for usage of Receipts, Norms
for pricing of ADR
Fungibility & Reverse Fungibility Process
Issuance Process of

Issuance Process : Sponsored Level 1 ADRs

Depository Receipts

Other Regulations : Issue expenses, Intimation to RBI

4 Hours

Key Documentation : Form F-1, Form 20F, Form F-6

Indian Depository Receipts (IDRs) : Features
IDR Guidelines

Issuance Procedure for

Features of Commercial Paper : Tenor, Issuance, Security,

Commercial Paper

Coupon
Who can issue CPs?
Credit Rating : Need of credit rating agency in CP issuance

4 Hours

Topics

Sub-Topics

Recommended
Study Time

process, Rules for credit rating agencies

Stand-by Facility
Participants in CP Issuance Process : Issuer, Investor,
Depository, IPA
CP Issuance Process : Steps involved in CP issuance
process
CP Redemption Process : Steps involved in CP redemption
process
Responsibilities of Issuing & Paying Agent

Types of Bonds : Plain vanilla, Callable, Puttable and

Convertible bonds
Key Terms
Bond Issuance Process: Snapshot - preparation &
approval, marketing & pricing, launch & completion
Preparation & Approval Marketing &
Pricing:Advertisement, Book building process
Bonds/Debentures - The

Launch & Completion: Listing at designated stock

Issuance Process

exchanges

4 Hours

Redemption of Debentures
Rollover of Debentures: Guidelines for rollover
Convertible Bonds
Foreign Currency Convertible Bonds
(FCCBs):Characteristics, issue process, SEBI and RBI
guidelines on FCCB Issues, FCCB - prepayment/buyback.

Total

24 Hours

Private Equity
Chapter

What will you learn?

Recommended
Study Time

Introduction, Investments Classification, Valuation, PE

Funds v/s Hedge Funds, Portfolio Construction, Cash Flows
Private Equity An Overview

in PE, Mark-to-Market of PE Investments, PE Fees, Investor

Profile, PE Deal Cycle Summary and PE Investment

3 Hours

Process.

Offshore PE Fund Structure, Forming Limited Liability

How Private Equity Works?

Investment Phase Part I

Partnership (LLP), Private Placement Memorandum and

Fund Raising.

Investment Phase Overview, Investment Phase-

2 Hours

2 Hours

Chapter

What will you learn?

Recommended
Study Time

Evaluation and closure Investment Phase - Live case.

Investment Phase Part II:

Term Sheet

Preparing the Term Sheet, Investor Rights, Agreements,

Employee Stock Option Plan and Due Diligence.

2 Hours

Post Investment Monitoring, Exiting from the Investment,

Post Investment Monitoring &

Foreign Venture Capital Investors (FVCIs), Private Equity

Exit

Firms - Income and Profits.

2 Hours

Roles and responsibilities of investment advisor and fund

A Private Equity Investment in
Real Estate: Case Study

manager, Developer analysis of the project, Investor analysis

of the project, Risk and return matrix for the project and

3 Hours

Valuation.

Introduction, Methods of Valuation, DCF Valuation, Relative

Valuation An Introduction

Valuation and Key Terms in Valuation

2 Hours

Introduction, Value of Equity, Variants of DCF Method,

Weighted Average Cost of Capital (WACC), Calculating Firm
Valuation - DCF Method

Value from Equity Value, When do we use Equity Value and

2 Hours

Firm Value and Calculating Cash Flows

A detailed live Valuation exercise on Titan Industries and

Valuation Live Illustration

Report Making: Sample reports.

2 Hours

Introduction, Types of transactions under M&A, Deal Drivers,

Mergers & Acquisitions An

Role of an Investment Bank in an M&A transaction,

Overview

Difference between sell side and buy side advisors role.

2 Hours

Key regulations affecting M&A transactions, Guidelines for

Mergers & Acquisitions

FDI, SEBI Takeover code, Regulations under companies Act,

Key Regulations

Tax implications in M&As.

2 Hours

Project Finance, Key Characteristics, Project Finance

Project Finance & Debt
Syndication

Perspective in India, Types of Infrastructure Projects, Typical

Project Finance Transaction Structure, Project Appraisal
Components, Debt Syndication.

4 Hours

Chapter

Recommended
Study Time

What will you learn?

Securitization, Benefits of Securitization, What can be
Securitized?, Risk Classification - Asset Class, RBI
Guidelines for Securitization, Distress Debt, Courses of
Action for a Company in Distress, Board for Industrial &

Securitization & Distress Debt

4 Hours

Financial Reconstruction (BIFR), Corporate Debt

Restructuring
Debt Recovery Tribunal, SARFAESI Act, Options for a
Corporate Banker.

Total

32 Hours

NCFM: Equity Research

Course Outline
Chapter

Topics

Recommended
Study
Time(Hours)

Overview: What is equity research? Goal of an equity research

analyst.
Market Participants:The research providers and the research
users.
Types of Research: Buy side research and Sell side research.
Equity Research - An
Introduction

Role of an Analyst: How do analysts go about research?, Front end

and back end research, equity research as a cost and revenue

center.
Concept of Alpha: Importance of alpha in equity research.
Key Terms used in Equity Markets, Stocks Classification.

Understanding

Annual Report Overview: Understanding key sections of an Annual 4

Financial Statements

report.

Chapter

Topics

Recommended
Study
Time(Hours)

Profit & Loss Statement, Balance Sheet, Cash Flow Statement.

Introduction: Stages of the qualitative analysis process - EIC

framework.
Economic Cycles: How valuation of a company gets affected by
economic activities?
Analysis of the
Economy

Key Economic Factors : GDP, Industrial Production, Inflation,

Unemployment, Business and consumer confidence and Oil prices.

Stock Indices: Different benchmark indices across the globe, How
do share prices and stock indices move? How are stock indices
interlinked?

Process: Identifying sub-sectors, Key revenue drivers, Key

concerns.
Analysis of the
Industry

Specific Industry Analysis: Oil & Gas, IT, Telecom, Banking and

2.5

Autos.

Process: Analysing the business, Revenue drivers, competitors,

Analysis of the
Company

Ratio Analysis

Management team.
1.5
Case Study: A detailed analysis of Shiv Vani Industries.

Profitability Ratios: Profit Margins - Gross margin, EBITDA margin, 4.5

Net Profit margin.
Return Ratios: Return on Equity (ROE), Return on Common Equity
(ROCE), Return on Total Capital (RTC) and Return on Assets
(ROA).
Liquidity Ratios: Current ratio, Quick ratio and Cash ratio.
Activity Ratios: Account receivables turnover & Days of
receivables, Inventory turnover & Days of inventory, Account
payables turnover & Days of payables.
Solvency Ratios: Debt-to-Equity ratio, Interest coverage ratio and

Chapter

Topics

Recommended
Study
Time(Hours)

Financial leverage.
Valuation Ratios: Price to Earnings (P/E) ratio, P/E re-rating and
de-rating, PEG ratio, EV/EBITDA, Price to Book Value (P/BV) ratio.
Case Study: Pantaloons vs. Titan Industries.

Concept: Definition and need for Valuations.

Methods: DCF, Relative Valuation.
Valuation

6
Case Study: A detailed exercise of valuation using DCF for Titan
Industries.

Report Writing

Types of reports,Format,Dos and Don't's of report writing.

TOTAL RECOMMENDED LEARNING HOURS

3
25.5