Top Notch Services Offered by Merchant Banking

Many of you might have not heard the term Merchant Banking. Where other banks offer credit facility to its customers, merchant banking, on the other hand, offers different services such as portfolio management, IPO launching, loan syndication, raising funds for clients and more.

In this blog, we will discuss the services offered by Merchant Banking. Before that let's understand the clear concept of merchant banking. 

Merchant Banking is a service offered by merchant bankers to its clients in terms of fulfilling their financial needs, raising funds for them and more.

Merchant banking is specialists in international trade and hence they get experience in trading with large enterprises. 

Services of Merchant Banking involves pre-counselling activities, issue management, loan syndication, underwriting, SME IPO launching and more. 

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 banks primarily work for small to mid-size enterprises. They offer services like bridge financing, equity financing, mezzanine financing. Investment banking, on the other hand, works for large companies. The clientele of Investment Bank is quite large as compared to Merchant banking.

Investment Banks offer services such as underwriting, selling securities, SMO IPO launching and share offerings. In addition to this, Investment Banks also advise their clients on mergers and acquisitions, capital restructuring and more. 

Services offered by Merchant Banking are:

• Stock Broking
• Portfolio Management
• Loan Syndication
• International Financial Advisory Services
• Private Equity Advisory

Functions of Merchant Banking

1. Portfolio Management

Merchant Bank provides numerous advisory services to institutional investors. They successfully manage the client's portfolio by trading in securities on the behalf of clients. 

2. Raising Funds For Clients

Merchant Banking helps clients in raising funds from domestic and international markets. Merchant banking raises funds by issuing securities like shares, debentures and more. 

3. Loan Syndication

Merchant Bank provides loan processing services for the short term, long-term credits. They provide numerous services by developing a financial plan, adopting loan applications for lenders, estimating the total cost involved. 

4. Leasing Activities

Merchant Banking services offer lease to its 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 regulation of the capital market. 

5. Corporate Restructuring

Corporate restructuring involves mergers and acquisition of existing businesses, sales or merger of existing business units. The process of corporate restructuring is very lengthy and complicated as it requires proper documents, negotiations, approval of legal authorities. 

6. Money Market Operation

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

Takeaway

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

If you are seeking a merchant bank that fulfils small size and mid-size companies, Swastika Investmart comes second to none. Swastika is a leading Merchant Bank of India, aims to provide high-quality services to its clients.

Moreover, the company also offers online share trading services with tips and recommendations so that a beginner can easily place trading orders with little hassle. 

For more information, it would be ideal if you visit: https://www.swastika.co.in/