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Tag: investment banking career

What’s The Current Deal With Commodities Trading?

Posted on by Imarticus Learning

Commodity refers to a raw material (can also be agricultural produce) that could be bought or sold. A fun fact: in ancient times, commodities were used as a currency in a system known as the Barter System. There are still certain places on Earth (like tribal areas) where the barter system is still prevalent.

Almost similar to this concept, commodities trading refers to the exchange of commodities in specific markets like Multi Commodity Exchange – MCX, The Universal Commodity Exchange – UCX, etc.

However, the global coronavirus pandemic shook everything. Trade Life Cycle is not the same anymore. We would be discussing this sudden shift caused by this pandemic and the exact situation of commodity trading today.

Trade Life CycleA brief History of Commodity trading:

Trading commodities could be easily linked back to even the prehistoric era. In fact, the rise and fall of entire empires have a direct relationship with their ability to sell and manufacture commodities. It would also be prudent to note that the empires that rose to dominance could create a complex and robust structure for commodity exchange.

In recent times this tradition of buying and selling commodities is retained. The only things that have changed are the commodities and the medium of transferring goods. Some of the most prominent ones responsible for commodity exchange are NYMEX, ICE, LME, etc.

Current State of Commodity trading:

It was 11th March 2020 when the World Health Organization declared the Coronavirus as a Global Pandemic. To curb the spread of the virus, lockdowns were initiated globally. Effectively, the world came to a standstill. Although a little normalcy has returned, however, things are far from what they used to be.

Because of the global shutdown, the demand and supply of commodities have been shaken from the inside, according to the reports of Commodity Market Outlook. The strength of the pandemic would determine how badly things would turn out to be in the future.

However, in today’s paradigm, things aren’t looking too optimistic. It has been estimated that this pandemic could leave a permanent impact on the supply chains, thus adversely affecting the producers and consumers worldwide.

The exact extent of the situation could be easily estimated by looking at the oil prices. The demand for oil is expected to go down by an unprecedented 9.3 Million barrels a day. The energy sector fairs no differently. The natural gas and coal prices are also supposed to fall by over 40% by the time this year draws to an end.

Metals (both precious and enterprise-grade) are also expected to fall. Needless to say, the entire world has been pushed to the brink of another recession. The only sector that remained untouched is the food sector. However, with the excessive regulations on export, things aren’t looking too bright.

What does it have to do with commodity trading, you ask? See, traders are in the game for profits and since the prices of almost all commodities are reaching an all-time low, so are their profits. Long-term challenges are being expected in commodity trading sectors.

Transport costs may start rising which would eventually accumulate as higher trading costs. Stockpiling goods can also result in restricting trade flows. Reduction of demand, supply chain disruption, and economic downturn can affect multiple economies and thus affect the commodity markets.

Companies worldwide struggled because of Covid-19. To overcome this, now every company have started giving the Investment Banking Training, that helps employees, traders, freshers, graduates to cover the financial crises and be ready for any such future crises.

An Investment banking career helps not only to manage the finances wisely but also helps to prepare the funds from a company level, business level to a retirement plan.

Investment Banking CourseThe Investment Banking course is for each and everyone, there is no such criteria to apply for this course, except the graduation in any field. But this helps truly in making big Financial decisions.

Fuelling Business Growth and Innovation with Investment Banking Operations

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Investment banking is that division within the banking sector that facilitates large capital funding for corporations and governmental bodies. Common perceptions make us immediately associate investment banking with Harvey Specter like bankers assisting corporations to crack high stakes negotiations and deals. But there are massive backend operations going on at all times without which these deals would be impossible.

That is the importance of investment banking operations. An operational investment banker, more commonly referred to as an operations specialist, is responsible for ensuring efficiency, accuracy, profitability, and risk reduction vis-a-vis the clearance and settlement of transactions for the company’s clientele.

Utilizing investment banking operations to their full potential engsures infinite business growth and innovation. Which is all the more reason why operations is an extremely lucrative career path.

In this article, we discuss the ways in which business growth and innovation can be fuelled with investment banking operations as well as provide recommendations for investment banking online certification and investment banker courses in India for anyone looking to learn investment banking to improve their career prospects.

best investment banking courses with placement in IndiaFunction Of Investment Banking Operations

Investment banks offer transactional, legal, and advisory services to their high-profile clientele with complex financial needs.

Some of the activities included in the oeuvre of investment banking are underwriting, mergers and acquisitions, equity research, and asset management.

During the processing of transactions, there is a huge volume of information, products, and money that continuously flow from end to end. The smooth processing of this data falls under the jurisdiction of the operations teams which is also referred to as the back office or engine room in investment banking parlance.

Apart from providing support to client-facing departments, the operations staff also ensure the optimal functioning of IT solutions and data management systems deployed across the organization. They also oversee the regulatory requirements of a bank.

Driving Growth Potential With Investment Banking Operations

Investment banks play a pivotal role in sustaining the larger economy by adding liquidity to the financial markets. They promote business growth and aid the circulation of money in the economy thereby promoting growth. Banking operations are the dark knight of any investment bank – the heroes who hide in plain sight. Although, they perform non-revenue functions, without them the profit-making capacity comes crashing down.

Think of it as having a strong core. No matter the amount of muscles one grows in the arms or legs, without a strong core, the body is unable to support or balance them. Streamlined banking operations can save banks tons of money which can then be utilized for business growth and building innovations.

How To Be An Operational Investment Banker

There are several roles and functionalities under the banking operations of an investment bank. New entrants usually undergo extensive on-the-job training for at least one to two years that helps in the development of niche expertise.

Hiring teams in investment banks look for formal education in finance and internship or apprenticeship experiences in potential candidates. Having an investment banker online certification also adds to a candidate’s competitive edge.

Conclusion

To learn investment banking, a good place to start is to get a degree from any reputed institution in India. A Certified Investment Banking Operations Professional course from a good institution can be the best investment banker course in India that can guarantee a CIBOP degree and best job interview opportunities.

best investment banking courses with placement in IndiaIf a classroom environment seems uncomfortable in the post-Covid world then you can also consider this online Certified Investment Banking Operations Professional course that offers holistic learning in the nitty-gritty of investment banking operations.

How to navigate the potential minefield of ‘Mergers and Acquisitions’ in the Investment Banking Industry?

Posted on by Imarticus Learning

Most of us are aware that Investment banking is a division within banking that broker transactional relationships between corporations and governmental bodies and private investors. But mergers and acquisitions is another ball game.

best investment banking courses with placement in IndiaIn this article, we discuss how to navigate the potential minefield of M&A and what investment bankers do in mergers and acquisitions.

We also provide recommendations on the ways one can learn investment banking to improve their career prospects.

Mergers And Acquisitions: An Overview

There are several activities included within the ambit of investment banking such as underwriting, sale of securities, facilitating reorganizations, and broker trades. But, perhaps the most important function of an investment bank is the end-to-end management of mergers and acquisitions.

In simple terms, an acquisition is when a company purchases another and positions itself as the new owner. A merger is when two companies of equal footing join forces to become a single entity. For example: When Daimler-Benz and Chrysler merged in 1998, both firms ceased to exist and a new firm called DaimlerChrysler was formed with new stocks.

Similarly, there are other transactional activities that fall under the bracket of M&A. Some of the others are:

  • Consolidations, where a new company is created by combining the core businesses while abandoning the older structures. This is done with approval from stockholders of both companies.
  • Tender Offers, where a company buys the outstanding stock of another firm at a price different from the market price. Most tender offers end in mergers although sometimes the acquiring company continues to exist as a unique entity.
  • Acquisition of Assets, where one firm directly acquires the assets of another firm that has typically declared bankruptcy.
  • Management Acquisitions, where a firm’s executives purchase controlling stakes in other firms.

Companies keep acquiring other firms mainly for two reasons: eliminating competitors by acquiring them and growing by acquiring new product lines, intellectual property, and human resources.

What Investment Bankers Do In Mergers And Acquisitions

An Investment Bank’s role in M&A can be categorized into two buckets: seller or target representation and buyer or acquirer representation. The banker performs either of these two roles on behalf of his investment banking firm.

An investment banker undertakes and oversees the following activities in any M&A transaction:

  • Representing and guiding the acquirer in determining the value of the firm being acquired, structuring the offer, negotiating the deal on their behalf, and so on.
  • Representing and assisting the target company to determine the market value of the company, providing legal advice during the negotiation process, and broker the best deal for the sale.
  • Advising both parties vis-a-vis market economy, industry trends, deal structuring, market dynamics, and pricing.
  • Performing market research and using their network to connect the seller with the best buyers.

How To Be Successful As An Investment Banker

An investment banking job is a highly lucrative career path that promises long-term stability and growth as well as a hefty remuneration. Because of the high-stakes nature of the job, companies prefer to invest in candidates with high potential and a strong background.

To become an investment banker, formal education in finance is highly recommended. Most hiring teams in investment banks look for candidates with a strong aptitude in finance, law, strategy, and operations. Similarly, prior apprenticeship or internship experience in investment banks also gives a candidate a competitive edge over others.

Conclusion

If you are seeking a growth avenue in your career as a finance professional, then entering the world of investment banks is a wise choice. For a working professional, a good way to learn investment banking is by enrolling in an online MBA in Investment Banking and Equity Research degree.

Having an MBA will have a candidate earmarked for top managerial positions in the most prestigious divisions within investment banking such as M&A.

How to Traverse the Web of Investment Banking Operations

Posted on by Imarticus Learning

An investment banking career is one of the most prestigious professions in the banking space because it guarantees a lucrative remuneration, infinite growth potential, and scope to work in leadership roles. Every year hundreds of graduates and experienced professionals seek to enter the investment banking space in various roles.

This article aims to simplify the web of investment banking as well as discuss career paths in investment banking operations.

What is Investment Banking all about?

Despite its high demand as a career option, the most commonly asked question is this – what is investment banking all about?

Investment banking is a division within the larger ambit of a bank or a financial institution that connects investors with corporations, governmental bodies like municipalities, and large institutions. Investment banks offer operational, transactional, legal, and advisory services to their high-profile clientele with complex financial needs.

Investment banks provide a range of services to their clients, such as:

  • Underwriting
  • Mergers and acquisitions
  • Sales and trading
  • Asset management
  • Equity research
  • Managing stocks and shares
  • Commercial and retail banking

Contrary to popular perception investment banking is not a single job. Rather, it is a huge segment within the banking ecosystem within which several departments and jobs exist. The various roles within investment banking can be categorized into:

  • Front office functions (revenue-generating and client-facing roles)
  • Middle office functions (overseeing compliance and risk management)
  • Back office functions (managing the entire organization’s operations)

Who Is An Operational Investment Banker?

An operational investment banker, more commonly referred to as an operations specialist, is responsible for ensuring efficiency, accuracy, profitability, and risk reduction vis-a-vis the clearance and settlement of transactions for the company’s clientele. Operations staff provide support to the client-facing departments. They are also responsible for the smooth functioning of IT solutions and data management systems deployed across the organization.

The responsibilities of an operational investment banker include:

  • Processing and settlement of financial transactions executed by front-office teams
  • Efficient logging and accurate processing of transactions within prescribed timelines
  • Developing and maintaining automated systems for fast and precise processing
  • Initiating and overseeing processes
  • Aiding in maximization of efficiency and profitability

Needless to say, an operational investment banker plays one of the most crucial roles in any investment banking firm. Without the operations staff, no process or transaction can go through in a safe and efficient manner. Entry-level staff in this niche are often hired as analysts and undergo a one to two-year on-the-job-training program and formal learning where they are taught administrative and business skills along with a deep dive into the company’s software systems.

How To Have A Career In Investment Banking Operations?

Like any other investment banking role, getting into operations can be challenging because of the competitiveness that exists in the field. On average, companies receive a minimum of hundred applications for each vacancy. Due to this reason, it is vital to have a competitive edge over other candidates to land a decent job in investment banking operations.

Candidates with a degree in finance or a valuable investment banking certification stand a better chance when it comes to being recruited. Companies also regard apprenticeship or internship experiences in operations with high value. Similarly, having an MBA degree in finance from reputed institutions also ensures significantly higher chances of getting recruited into top management positions in investment banking operations.

Conclusion

A career in investment banking operations provides high levels of personal and professional growth, stability, and lucrative financial rewards. It is one of the most important and sought-after career paths in the banking industry and valuable expertise to acquire if one seeks to climb up the rungs to top leadership positions.

best investment banking courses with placement in IndiaThe journey begins with upskilling oneself to suit the requirements of an investment banking operations career.

For that, an investment banking certification course like this Certified Investment Banking Operations Professional course is a good place to start.

Investment Banking and Its Key Advantages!

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Understanding Investment Banking

Investment banking Training is a specialized division within the finance and banking industry that engages in advisory-based financial transactions for its clients, the clientele includes individuals, government, and corporations. Investment bank helps in capital creation for its clients. The primary function of these banks is to act as a mediator and facilitate financial transactions between two or more parties.

The investment banks leverage their vast network to connect borrowers seeking funds with investors having surplus capital to invest in profitable avenues.

Investment banks help the economy on a macro level by channeling funds between borrowers and investors. Investment banks also help to facilitate Mergers and Acquisitions deals; it requires conducting rigorous research on the companies that can be a good fit for its client’s M&A strategy. Investment banks also help with underwriting new debt and equity securities for various corporations.

Let’s understand the functioning of an investment bank using a familiar example. You must’ve heard of Initial Public Offering (IPOs), during the IPO process the company issues shares and invites the public to be a part of the organization by buying its shares at a predetermined price. A lot is going on behind the scenes, like valuation of the company, market analysis, competitor’s analysis, etc.

All these complex tasks are carried out by Investment banks to help companies go public and accumulate the required capital for their growth and profitability. Investment banks also determine the share prices so that the chances of oversubscription and under subscription can be avoided. Let’s dig deeper into some of the key advantages of Investment banks and how they help the economy.

Key Advantages of Investment Banks

The key advantages of Investment banks can be highlighted in their functioning.

  • Initial Public Offering (IPOs): Initial Public Offering process is an overwhelming financial transaction process and requires expertise in various aspects. Investment banks serve their clients going public by acting as intermediaries between corporations and investors.

    Investment banks provide underwriting services for companies opting for equity funding by issuing company stocks to the public. The underwriting process is not as simple as it sounds. The underwriting process involves investment banks purchasing the shares of the company at an agreed-upon price which it then resells to the public using a stock exchange.This requires the investment bank’s commitment to purchase a specified number of shares, it could purchase all or part of the total shares being issues. There are three types of underwriting commitments; it includes firm commitment, best efforts, all or none. In the firm commitment, the investment banks have to purchase all the shares being issued at a predetermined price.

    The best effort commitment is suggestive of the name, here investment banks commit their best to sell as many shares as possible and there is no legal obligation for them to buy all the shares being issued. All or none case requires selling all the shares being issued to the public, any under the subscription will lead to a null deal.

  • Mergers and Acquisitions (M&A): Mergers and acquisitions is a strategy used by corporations to come together and boost collective profit by eliminating competition. Corporations leverage their synergy in operations to boost profitability and growth prospects. The merger involves two companies usually competitors coming together whereas acquisition involves one company buying a majority stake in another company or acquiring it.

This whole process entails complex research work to understand the competitors in the market and what they bring to the table for a profitable M&A deal. The M&A deals also require investment banks to value to targeted companies that could be a profitable prospect, this valuation requires conducting rigorous due diligence to understand the financials of the prospective company.

Also Read: Beginner Guide to Investment Banking

Investing Banking as a Competitive Industry: Reasons to Become An Investment Banker and what do they do?

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Banking has been a competitive industry for years. The competition is so great that investment bankers have to be on top of their game at all times. The best way to improve the chances of landing one of these coveted positions is by getting the education and experience needed beforehand.

There are many reasons that people consider making a career in this new-age transformation of industries. This blog post highlights the reasons to become an investment banker and what an analyst is as a part of the job role.

Reasons to make a career in Investment Banking Industry:

Investment banking is a very competitive industry where only the best and brightest are hired. Because of this dynamic, investment bankers are those getting do everything in their power to attract top talent.

  • Great way to enter Private Equity & Hedge Funds
  • Excellent salary packages
  • Get the best business education possible
  • Explore any field of finance & business while being an investment baker
  • Experience different tasks every day
  • Make an essential impact on the economy and lives on a day-to-day basis.
  • Make lifelong friends that support your professional graphs
  • A great career pathway
  • Exciting Deal making exposure
  • Influence people and clients
  • Playing on excel and financial modeling
  • Get a skill in financial modeling and valuation
  • Surrounded by brilliant and talented individuals
  • Build Credibility for yourself in the start-up world
  • Build Confidence & learn to handle moods and emotions
  • Developing a fantastic work ethic
  • Learn networking and build one

What does an investment banking analyst do?

An investment banking analyst course is designated to evaluate & research investment opportunities to find the suitable investment for the client’s goals. Investment banking analysts are responsible for assessing opportunities & recommend investments based on needs & goals.

They handle corporate clients like new investors, existing investors, or even the analyst’s organization. If the clients are new, the analyst is responsible for gathering & process data, investigating opportunities & present the findings to the team/client.

For existing clients, analyst evaluates investments based on performance & makes recommendations for keeping/replacing them. If the client is their organization, analysts assess earnings reports, assets, industry trends, etc., to make investment recommendations for their institution.

Other investment banking analyst responsibilities include the following:

  • Reviewing & analyzing data for investment portfolios, the performance of stocks & bonds, credit trends, & other transactions
  • Presenting results of research & investigation to internal team or external clients
  • Handling administrative tasks like generating reports, arranging meetings, & other materials, while ensuring the unit operates smoothly.

How to Become an Investment Banker?

best investment banking courses with placement in IndiaImarticus Learning offers investment banking certification courses. The Certified Investment Banking Operations Professional (CIBOP) course fully equips students with the skill-sets needed to kick-start a career in investment banking operations & clearing services.

Upon completing this course, students receive an industry-recognized, internationally accredited Certificate of Excellence.

Through real-world scenarios, trading simulations & hands-on assignments, students understand the industry more cohesively & practically, with an ability to contribute to the workplace from day one. The CBP program stands out in finance courses in its depth, expertise, and relevance to the investment banking industry. It is a valuable pathway to gain industry-relevant domain knowledge and get placed in a leading global bank.

Contact us through the Live Chat Support system or visit our training centers in Mumbai, Thane, Pune, Chennai, Bengaluru, Hyderabad, Delhi, or Gurugram for more insights on investment banking certification courses.

Gain Expert Insights & Discover Bespoke Solutions for your Investment Banking Operations Needs

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The global investment banking industry is experiencing a boom, which means that the demand for skilled professionals has never been higher. Investment banking is a fast-paced, demanding job where you’ll be working with highly knowledgeable individuals. You will need to have the right skills and knowledge of the industry to succeed in this field, making it an excellent career choice for anyone who wants to work in finance.

With so many new opportunities opening up every year, now is the perfect time to start building your professional network and getting ahead on your plans for a successful career.

This blog post will provide you with insights into gaining expert knowledge to land your dream job as an investment banker!

Why Should Investment Banking be your Career Choice?

The investment banking industry has seen a boom in the last decade. The world is moving towards digitization, and so are all industries along with it. Investment banks deal in stocks, bonds on both the macroeconomic level of the country and the microeconomic level of a company. All transactions between two companies or even countries need an intermediary to ensure a smooth process that ensures better growth for the economy and trade relations between countries/companies etc.

This role can be fulfilled by only an investment bank with proper research resources for analysis at its disposal. They use these insights to advise clients accordingly, ensuring the best decisions leading to maximum returns from the said transaction(s). This ever-growing demand for executives within this field has led many professionals across various sectors to change careers and join investment banks.

This is the perfect time for you to grab this opportunity as an Investment Banker, especially with so many openings in various fields like equity research analyst, corporate finance associate, or mergers & acquisitions banker, etc. While working your way up through each hierarchy of different job profiles, there is no dearth of opportunities waiting for you.

Key Skills required for Investment Banking Job

Analytical skills: A banking job requires a lot of number crunching. You need to make sense out of volumes and tonnes of data, analyze it within no time, sift through important information and facts from the irrelevant ones ensuring that you provide actionable insights.

Communication skills: Investment banking professionals are required to write reports for their clients in order to provide them with valuable insights and help them in decision-making.

Attention to details: Investment banking requires a lot of focus on minute and important tasks because the smallest error can lead to millions of dollars in losses for your company.

Networking: Investment banking is all about building relationships, you can have the best ideas, but if you don’t know who to sell it to or introduce your client’s needs and services into the system, then no one will ever come across them. It’s all about knowing who to talk to and how.

Problem-solving skills: Investment banking professionals are expected to have good problem-solving skills as they need them regularly to produce accurate reports, analyze data, assess client requirements, etc.

Start a Lucrative Investment Banking with Imarticus Learning

Imarticus Learning Institute offers an investment banking course that imparts knowledge, skills & techniques which are necessary to succeed in today’s competitive financial world. This comprehensive training program is designed by industry experts who have years of experience and exposure in the field.

best investment banking courses with placement in IndiaIf you’re looking forward to jumping start your investment banking careers with exciting job opportunities, then Imarticus Learning’s course is your best place to start!

For more insight, connect with us through the Live Chat Support system or visit any of our training centers based in – Chennai, Mumbai, Thane, Pune, Bengaluru, Hyderabad, Delhi, and Gurgaon.

How Automation is improving Employee Experience in Investment Banking Operations?

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Automation is not a distant dream anymore. Most of the industries already started using automation to reduce the human workforce, reduce the workload on the human workforce and make the regular repetitive activities more efficient.

best investment banking course with placement in IndiaThe investment banking sector also stepped in to explore the world of automation and how they can utilize it.

When you are looking for an Investment Banking Career, you should know how automation impacts it. Relevant investment banking courses can provide you the knowledge you need.

Investment banking is one of the most rewarding careers however this industry demands long working hours, sometimes till late-night and also on weekends. In spite of efforts from banks, this scenario hasn’t changed a lot. As a solution, many banks started implementing automation to reduce the workload for their employees.

The advantage is that automation has convinced more banks to implement automation in the maximum possible areas.

In recent days, what many companies are preferring are citizen-led automation programs. Citizen-led automation or citizen automation basically enables a non-technical user or a user with limited technical expertise to create simple automation for themselves or their department as needed. This automation feature proved to be extremely beneficial for the bank and their employees, which is the true essence of automation.

With the help of citizen-led automation, the employees are now capable of using low-code tools and they have the basic knowledge of building automation to perform many of their day-to-day activities. The bright side of automation doesn’t end here.

Employees can automate many of their tasks which are otherwise very difficult and time-consuming when performed manually. Through extensive use of automation, employees are empowered to focus on higher-value tasks for the banks which they were not able to pay much time and attention to before automation, thereby causing benefits to the bank like never before.

Banks demand authenticity in their operation. Many banks still doubt the authenticity of automation programs. There exists a common perception among many banks that these citizen-led automation programs are not worth investing in. However, reality speaks otherwise.

Within any industry including banks, there are hundreds of activities that are repetitive in nature and still performed manually. There’s no point in investing in dedicated teams to perform all these activities when all these tasks can be automated.

Equipped with citizen development, employees are building automation and front-office teams are freeing themselves from hundreds of hours previously spent on repetitive tasks. Below, a few cases from the investment banking sector, which are getting automated or can be automated.

Prepare trading reports: Automation bots prepare reports with charts and trading elicited from 3rd party data providers and send them to analysts.

Preparing presentations: Automation bots help build presentations by adding dates and titles, comparable company metrics, market performance charts, and other relevant data points.

Generating public information books: Bots pull company details, press releases, research, and news articles from various sources and merge them into a single PDF document.

Consolidating working group lists: Bots navigate across multiple applications to assemble relevant client information and input it into a formatted document that the team can use further.

Formatting earnings models: Bots work across various worksheets to transfer data from prior quarters into the current quarter’s data and prepare earnings releases.

Handling workflow change requests: When the bankers request workflow changes every time they are to start working on a new project. But an automated bot accommodates changed workflow requirements easily.

Conclusion

Considering the extreme workload in the investment banking industry, automation is a sign of hope. Slowly investment banks are inclining more and more towards automation.

If you are building an investment banking career and considering taking the best investment banking course with placement in India, you may need to pay attention to automation as well because automation is the future.

An Extended Insight of Investment Opportunities in the Shipping Sector!

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The strategic position of India by the world’s largest sea route in the Indian Ocean emphasizes the significance of its shipping sector, which accounts for 95 percent of India’s global trade value.

For India, increasing investments to $81 billion, port and harbor construction projects are a top priority. Under an automatic pathway, foreign investment is permitted up to 100 percent in harbor construction projects

India’s shipping sector is a vital component in the country’s economic growth, both by value and volume. According to data from the Department of Ports, Shipping, and Waterways (MoPSW), maritime transportation channels account for around 95% of India’s global trade volume and 70% of overall trade worth. As of April 2020, India had a fleet of 1431 vessels.

Investment opportunities in the Indian shipping industry

With a focus on indigenous developing, maintaining, and operating ports, inland waterways, and shipbuilding, India has streamlined and expanded the scope of investments in the maritime sector.

Port and harbor projects are eligible for up to 100% foreign direct investment (FDI) under the automatic route in India. Indian ports have attracted a cumulative FDI total of INR 122 billion during the previous two decades (US$1.64 billion).

More than 574 new projects relating to the development of Sagarmala have been identified for implementation by 2035, and an investment of INR 6 trillion (US$81 billion) is being sought, both from the public and private sectors, in areas such as port modernization and new port development, port connectivity improvement, and port-linked industrialization.

As of September 30, 2019, a total of 121 projects at a cost of INR 302.28 billion (US$4 billion) have been completed, and 201 projects at a cost of INR 3.09 trillion (US$42 billion) are in progress.

The use of clean/renewable energy sources, as well as the improvement of associated infrastructure for trade and tourism, are also priorities in this sector.

In March 2021, India announced 400 new projects in the maritime sector with an investment potential of INR 2.25 trillion (US$30 billion) for developing its coast. India has also published a 10-year strategic vision for the maritime sector, “Vision India 2030,” which sets out its goals for the development of the industry.

Leverage the Growing Opportunity

Every industry needs cutting-edge professionals to bear the right fruits. The shipping industry is no different. With the right knowledge of investment banking and asset management, you can become a sought-after professional in this field.

Want to Learn Investment Banking and Asset Management?

best online MBA classesJoin Imarticus’ hosted MBA program in Investment banking and equity research in association with JAIN University.

Be industry prepared and secure your career with Imarticus learning today!

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Entrepreneurial Finance & Investment Decisions in Seed-Stage Ventures: An Overview

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Startups and Typical Funding Path 

There are many ways to finance a new startup, and finance is one of the most important aspects to consider when launching a business. There are several sources of finance available for startup ventures, which include public finance, private equity finance, venture capital finance, and self-funding (called bootstrapping).

Public finance is very broad in scope and typically includes funds raised by companies from government agencies or government programs designed specifically for entrepreneurial purposes.

Much of this activity takes place at the local level, where city governments work with entrepreneurs through various programs to help launch new businesses within their communities. These programs can vary widely from location to location; however, they generally offer technical assistance on all stages of company creation as well as financial support such as low loans or seed money grants.

What is Seed Financing?

Seed financing (also known as seed money, or seed funding) is the first stage of a startup’s capital-raising process. Seed financing is a form of equity-based finance. In other words, investors give money in exchange for an ownership stake in a firm. This is generally done in a looser formal setting when compared to other types of equity-based capital investment.

How is Seed Capital Used?

Seed capital is typically used to cover the company’s initial operations. Proceeds from seed financing might be spent on market research or early-stage product development (e.g., the formation of a prototype), as well as on essential operating expenditures such as legal fees.

The majority of the funding comes from family, friends, and angel investors. Angel investors are the most important participants in seed investment since they might supply a large quantity of money.

Seed Financing as an Investment Vehicle

The riskiest type of investment is seed financing. It entails putting money into a firm that has just begun to generate revenue or profits. Venture capitalists and banks, for example, typically avoid seed financing because of these reasons.

Seed investment, on the other hand, is one of the most complicated types of financing. This is due to a lack of information on the part of a potential investor. Because it’s crucial for determining whether or not your company has a viable concept and strong management that can implement it, you’ll have to do some research yourself.

The executive’s soft skills, as well as the company’s management abilities, also have an impact. Management expertise isn’t always crucial, however. Many internet giants like Facebook and Google were created by people with virtually no prior business administration experience.

Looking for finance courses with placement?

MBA in investment banking and equity research can skyrocket your career! Join Imarticus’ exclusive program in association with JAIN University and up-level your career in finance in no time.