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FINANCIAL SERVICES

REPORT ON SBI CAPITAL MARKETS (SBICAPS)

By

GROUPD

Submitted by

Amarnath sen(1225111106)

Pavan (1225111118)

Praveen(1225111133)

Sandeep Tata(1225111146)

Supriya Kuku(1225111154)

Sowmya( )

Greeshma()

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Investment Banking:

An investment bankis a financial institution that assists individuals, corporations and

governments in raising capital by underwriting and/or acting as the client's agent in the issuance

of securities. An investment bank may also assist companies involved in mergers and

acquisitions, and provide ancillary services such as market making, trading ofderivatives, fixed

income instruments , foreign exchange, commodities, and equity securities.

SBI CAPITAL MARKETS:

SBI CAPITAL MARKETS LIMITED (SBICAPS) is India's leading investment bank and

project advisor, assisting domestic companies fund-mobilization efforts for last many years.

It began operations in August 1986 as a wholly owned subsidiary of State Bank of India, whichis the largest commercial bank in India. In January 1997, fresh equity shares were issued to

Asian Development Bank (ADB) and ADB held 13.84% stake in the equity of SBICAPS.

The ADBs stake has been purchased by State Bank of India in March 2010. SBICAPS is again a

wholly owned subsidiary of State Bank of India.

Capital Markets Group:

Capital Markets Group handles transactions in the capital markets space across multipleinstrument structures. Since inception, they have been a leading merchant banker of choice, and

over the past few years, they have had a significant presence in the areas of book-built

transactions, and have also played a role in pioneering new equity-instrument related solutions.

They have also been in the fore-front of debt transactions through the capital markets, and have

been a leading player in structured debt transactions. SBICAPS relationships across investor

categories such as corporate, banks, domestic and foreign financial Institutions, central and state

public sector undertakings, high net-worth individuals and retail individuals have been long-

standing and gives an edge in our product and solution offerings both in the debt and equity

space.

http://en.wikipedia.org/wiki/Underwritinghttp://en.wikipedia.org/wiki/Securitieshttp://en.wikipedia.org/wiki/Mergers_and_acquisitionshttp://en.wikipedia.org/wiki/Mergers_and_acquisitionshttp://en.wikipedia.org/wiki/Market_makerhttp://en.wikipedia.org/wiki/Derivative_(finance)http://en.wikipedia.org/wiki/Fixed_incomehttp://en.wikipedia.org/wiki/Fixed_incomehttp://en.wikipedia.org/wiki/Foreign_exchange_markethttp://en.wikipedia.org/wiki/Commoditieshttp://en.wikipedia.org/wiki/Equity_securitieshttp://en.wikipedia.org/wiki/Equity_securitieshttp://en.wikipedia.org/wiki/Commoditieshttp://en.wikipedia.org/wiki/Foreign_exchange_markethttp://en.wikipedia.org/wiki/Fixed_incomehttp://en.wikipedia.org/wiki/Fixed_incomehttp://en.wikipedia.org/wiki/Derivative_(finance)http://en.wikipedia.org/wiki/Market_makerhttp://en.wikipedia.org/wiki/Mergers_and_acquisitionshttp://en.wikipedia.org/wiki/Mergers_and_acquisitionshttp://en.wikipedia.org/wiki/Securitieshttp://en.wikipedia.org/wiki/Underwriting

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Their experience in managing a vast array of transactions has enabled to develop and accumulate

expertise in this field. New product development is essentially based on assimilation of such

expertise and helps them provide holistic solutions specific to theirclients needs across various

financing options. SBI is into multiple business and product groups to deliver the most optimal

and innovative financial solution.

Product and solutions includes:

Managing Initial Public Offerings and Follow-on Public offerings and Offers-for-Sale Managing Rights Offering, be it the traditional or the structured formats Qualified Institutional Placements Open offers, Buyback and Delisting of securities Bulk and Block trades on Exchanges, and off-market transactions (Auction based

transactions for GoI divestments)

Offerings of convertible securities Public offering of Corporate structured bonds Arranging Private Equity to include growth capital, pre-IPO convertibles, private

investments in public equity (PIPES), mezzanine debt and equity, and equity offerings

completed as a private placement.

Private placement of bonds

Capital restructuring advisory services Advisory and arrangement services for products such as AIM Listing, Indian Depository

Receipts, ADR/GDR and other off-shore equity or bond listing options

Services for a transaction typically entail

Evaluation and understanding of the business to identify critical positioning levers andvalue drivers

Due diligence and translation of the business understanding into an Offering Document(Prospectus/ Information Memorandum /Offer Document) - the company's primary

marketing tool in the financial marketplace, within the purview of the various domestic

and international regulatory and statutory frameworks

Preparing the client organization to meet the rigorous demands of public markets

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Obtaining regulatory approvals for the transaction, wherever necessary Advice on documentation and agreements for the process Liaison with various intermediaries for carrying out the transaction process Completion of post-issue formalities including listing and trading, wherever applicable

Managing Rights Issues

Formulating an action plan for complying with various formalities relating to the issueand preparation of a tentative budget for the total issue expenses

Preparing and assisting in finalizing the draft Letter of Offer (LoF) Obtaining various consents and approvals from the Stock Exchange & SEBI Providing assistance in selection of various intermediaries to the issue, viz., Registrars,

Advertising Agency, Printers, Bankers, etc. and co-ordinating with them

Designing of issue advertisements, statutory or otherwise, preparation of other publicitymaterial, and assist in drawing up of a media plan in general

Fixing of an appropriate date for launching the issue with due regard to the strengths andweaknesses of the issue and attendant market forces, as well as other relevant factors

Finalizing allotment through co-ordination with the Registrars to the issue and Bankers tothe issue

Managing Takeover Open Offers

Preparation of the public announcement, submission of the same to SEBI, TargetCompany and the stock exchanges and release of the announcement in the prescribed

newspapers

Assistance in choice and appointment of intermediaries such as Registrar to the Offer,Advertising Agency, Printer, Depository and Monetory co-ordination with them

Preparation of the Letter of Offer and the submission of the same to SEBI, the Board ofDirectors of the Target Company and stock exchanges as well as submission of a due-

diligence certificate to SEBI

Incorporation of SEBIs comments in the Letter of Offer and co -ordination with thePrinter, Registrar and Banker regarding printing and dispatch of Letters of Offer

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Co-ordination of post-offer formalities such as dispatch of payment consideration andunaccepted share certificates to shareholders

Submission of Final Report (45 day report) on the completion of the Offer to SEBI andissuance of certificate to Acquirer regarding completion of the Offer formalities

Advising the Acquirer on anything else necessary to ensure compliance with applicablelaws, regulations and any other laws or rules pertaining to the Open Offer and related

matters

Managing Delisting Offers

Preparation of the public announcement and assistance in co-coordinating release of theadvertisements thereof

Assistance in managing the reverse book building process including appointment ofbrokers for the same

Assistance in arranging and co-coordinating with the electronically linked stock exchangefor reverse book building and payment by the Acquirer for the shares tendered to the

shareholders thereof

Assistance in appointment of Registrar and Transfer Agent for acceptance of offers fromshareholders thereof to them

Assist in the application to the stock exchanges where the shares of the company arelisted and follow up for delisting

Advising on anything else necessary regarding compliance with applicable laws,regulations and any other laws or rules pertaining to the offer and related matters

Mergers & Acquisitions

Advising on merger transactions including valuations & managing the merger process. Advise on cross border and domestic acquisitions and divestments Assisting companies in acquisitions - preliminary research and identifying prospective

targets / buyers. Structuring the transaction, handling due diligence, valuations, assisting

the company in the negotiation process and executing the transaction, duly complying

with the regulatory formalities.

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Assisting the Company in financing the deal. Managing takeover Open Offers for companies acquiring substantial stake in listed

Indian companies

Assisting the Company in finalizing the deal Managing takeover Open Offers for companies acquiring substantial stake in listed

Indian companies.

Assisting companies in sell-off of assets / business, negotiations with potential biddersand evaluation of bids.

Private Equity

Assistance in preparation of an information Memorandum for potential investors.

Initiate discussions with potential investors and present to them the investmentopportunity on behalf of the company.

Assist the management in negotiation and discussions with strategic / financial investors. Assist in structuring the investments which could be in the form of equity, quassi-equity

or such other convertible instruments.

Assist the company in preparing for the pre-investment due diligence by the potentialinvestor.

Assist in structuring the transaction and the guiding the management through the entireprocess leading to financial closure.

Foreign Currency Convertible Bonds

They assist companies in:

Structuring the transaction and advise on the terms of issuance. Assistance in complying with local regulatory requirements. Advising on the timing of the offering.

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Corporate Advisory Services

Buy-Side Advisory Sell Side Advisory Including Disinvestments Joint Ventures Valuation Advisory Services including Business Valuation

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