Capital Market Services
Capital Market Services cater to those plans and proposals of a company, which by virtue of the corporate being a listed entity or proposing to become one, the proposed transactions need to be carried out in a systematic manner following the applicable guidelines, if any, issued by the market regulator. The services include planning of a transaction, due diligence, obtaining necessary approvals from the authorities concerned and execution of chain of transactions in a planned and required manner.
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Our capital market service offerings can be broadly categorized under the following heads:
- Management of Capital Issues: We undertake management of all types of capital issues - Initial Public Offers, follow-on public offers, rights issues, Qualified Institutions Placement involving placement of listed companies' equity or instruments convertible into equity with QIBs. Arihant can act as Lead Managers / BRLM / Co-BRLM, undertake the entire responsibility of managing any type of capital issue and render complete range of issue management services commencing right from capital structuring to listing of the capital on the stock exchanges. Through a process of analysis and strategic guidance, our Division can help companies evaluate their most attractive financing options and assist them with the process of achieving a public listing duly meeting regulatory requirements and standards.
- Acting as Lead Managers for IPOs, FPOs, QIPs, Rights Issues,
- Acting as Lead Manager for SME IPOs and providing services for Institutional Trading Platform (ITP) listing
- Management of Open Offers: We offer our services to act as managers to open offers in respect of substantial acquisition of shares of listed companies. The Services include activities of due diligence, transaction structuring and completing the entire process in a time bound and efficient manner in compliance with the SEBI regulations.
- Acting as Managers to the offer for Open Offers
- Managers for de-listing / buyback offers: We handle assignments for reverse book building in respect of de-listing of shares, buyback offers etc., as per SEBI regulations.The activities include assessing the feasibility of the transaction, designing of strategies to achieve the objective, entire regulatory compliance support, handling of shareholder communication, Reverse Book Building and ancillary broking support through our nationwide network.
- Acting as Managers to the offer for Delisting and Buyback
Arihant provides growth oriented companies with a complete range of investment banking services to help them meet their expanding capital needs backed by our in-depth knowledge of the financial and capital markets. Our team members are well experienced in structuring and raising both debt and equity capital for mid-sized growing corporates. Our team has nurtured relationships with financing sources and financial intermediaries which allow us to organize debt and equity funds for our clients.
We think beyond individual transactions to become a trusted advisor to our clients
Whether a company's capital needs are simple or complex, we have the experience for creating a financing plan, preparing the project report or the offering document, locating and obtaining the necessary funds and closing the transaction in a timely and professional manner. Throughout the process, we work closely with our clients to evaluate the funding proposals, negotiate financing terms with lenders and investors, and to resolve all matters necessary to close the transaction.
The corporate finance services are broadly categorized as under:
Private Equity Investments: With an in-depth knowledge of the PE investment process, strong understanding of regulatory and compliance requirements, local knowledge and a strong relationship with key PE players, venture funds, HNIs and other strategic investors, Arihant is best positioned to execute transactions quickly and efficiently.
We organize placement of unlisted and listed equity capital and FCCBs of growth oriented companies. We look for companies in growth mode, having management that is capable of moving to the next stage with the addition of capital. Such investments and support facilitate corporate to enhance enterprise value through affiliations, additional business opportunities and operating synergies.
- Syndication of growth capital from PE Funds, HNIs and Strategic Investors.
- Seed-capital for start-ups from VCFs and other angel investors.
- Placement of listed equity with investment institutions/ mutual funds and other strategic investors (PIPE).
Debt Syndication: Arihant has a strong expertise in debt syndication and has long-standing relationships with leading financial institutions, banks, NBFCs, mutual funds and insurance companies. With access to the senior decision makers at these institutions, along with a sound understanding of lending norms and requirements of lenders, Arihant can assure of obtaining quick and constructive responses. We arrange both long-term & short-term finance at competitive costs offering syndication of project finance, working capital finance, trade finance, corporate loans, and placement of debentures, commercial paper and other securitized debts. We also have in-house know-how and capabilities to organize overseas debt funding in the form of ECBs.
From preparation of detailed project report to assisting with the application to obtaining sanctions to completing the documentation and disbursal, our team will assist you with everything.
- Bulk deals of Equity: We organize placement / bulk deals of equity of listed companies with institutions / HNIs / other investors through secondary market deals.
Strategic Advisory Services
Strategic advisory services relate to those aspects of a company's plans which involve strategic business decisions such as expansion, diversification, acquisition, merger / demerger, business restructure, joint venture, sale of undertaking etc. To offer strategic advisory services, an investment banker needs to have thorough knowledge of the applicable regulations, ability to analyze and research about the industry and the entity in particular and a vision towards future which will assist the corporate entity in crystallizing a strategy and planning, executing and achieving the desired financial and operational objectives. Our merchant banking team has hands-on experience in rendering these services to a host of large to mid-size corporates. Arihant's strong in-house research team further supplements the division's capabilities in this regard.
Our advisory services include the following:
- Project Advisory Services: Advice on selection of new projects / expansion or diversification plans, location, technology, JV partner, structuring of means of finance, ownership / shareholding pattern, preparation of DPRs etc.
- Corporate Restructuring / Business Reorganization: Arihant offers expert advice on business restructuring and re-organisation which may involve restructuring of debt and equity, demerger or consolidation of business, amalgamation / acquisition of new business, either as part of growth plan or as rehabilitation-cum-revival plan.
- Mergers / Takeovers / Slump-sale of Business: We advise clients on mergers / takeovers and other forms of acquisition and assist them in going through the entire process in a hassle-free, time bound plan of action. We also organize slump-sale of businesses at optimal valuation maintaining deal confidentiality right through.
We offer the following services to the client under M&A:
- Identification of target (Buy side/sell side)
- Advice on business restructuring through merger / de-merger / spin-offs
- Devise re-structuring schemes for rehabilitation of sick industrial companies
- Preparation of investor collaterals and financial model
- Pre-sale / Acquisition due diligence
- Obtaining various regulatory approvals
- Other related services: Arihant offers its expertise in conducting due diligence for transactions involving takeover, mergers, equity investments etc. Besides, we also offer our services selectively for preparation of information memorandum and other required documents for clients / circulation among concerned market players.
Valuation and Specialized Services
Armed with the thorough knowledge of regulations, deep understanding of business dynamics and expertise in valuations, our dedicated team provides special advisory and valuation services.
- Share Valuation of unlisted companies for income tax purposes (perquisite valuation of ESOPs) and other regulatory purposes.
- Inbound / Outbound investments, FDI / ODI, transfer of shares involving non-residents etc for RBI / FIPB purposes.
- Valuation of fair value of options (ESOP) and calculation of accounting charge of ESOP in compliance of relevant guidance note of ICAI.
- Fairness Opinion on valuation in relation to mergers/demergers required for various regulatory and non-regulatory purposes.
- Business valuations for takeovers, mergers, de-mergers and other business restructuring and arrive at swap ratios.
- Buy side/ Sell side business valuation.
- Pre-Money and post money valuations i.e. seed capital/ venture capital/ private equity phase.
- Specialized valuations viz.
- Intangible Asset valuation i.e. brand valuation, copyrights, trademarks, know-how, customer base, etc.
- Issue of shares for consideration other than cash
- Valuation of assets for impairment assessment for accounting purposes
- Advising and handling of offer for sale (OFS) for companies requiring to avail this route for reorganisation of shareholding structure.
- Complete ESOP advisory from formulation of scheme to stock exchange approval, fair valuation of options, fair market valuation of shares for perquisites till broking services for sale of shares by employees.
- Listing services to companies listed on regional stock exchanges aspiring to list on stock exchanges having nationwide terminals through migration / direct listing
- Advisory and technical support for listing of companies on the institutional trading platform
- Complete advisory and valuation services for issuance of sweat equity shares in compliance with applicable regulations
- Advisory Services for listing of securities pursuant to merger / demerger / scheme of arrangement under rule 19 of SCRA requiring regulatory approval
- Evaluation of non-compliance and advisory services under SEBI (settlement of administrative and civil proceedings) regulations 2014 for compounding / settlement of cases under consent mechanism
- Pre-IPO or pre-Investment advisory to corporates to apprise them of regulatory and investor related requirements and making them IPO-ready
- Regulatory valuations for listed and unlisted entities â€“ Income Tax, RBI, FEMA, FIPB purposes
- Valuation of assets and business valuations for mergers / demergers, slump sale, corporate restructuring etc (buy side/sell side)
- Issuance of Fairness opinion for mergers / demergers and corporate restructuring involving listed companies
- Specialised valuation of intangible assets
- Valuation of contribution for issuance of shares under sweat equity and for 'consideration other than cash' for listed and unlisted entities
- ESOP advisory including formulation and certification of scheme, valuation of options for grant-date and annual disclosure purposes
- Fair valuation of assets and other securities for accounting and disclosure purposes viz. impairment assessment etc.
- Listing advisory for migration / direct listing / ITP / under scheme of arrangement
- Advisory on SEBI consent / settlement mechanism