Hyderabad boasts a vibrant economy with thriving IT, and Pharma-Biotech, witnessing new startups, IPOs, and M&A. This has attracted global players like Goldman Sachs, Broadridge, BNP Paribas, etc. to the city. Investment banking involves one of the most complex financial mechanisms where investment bankers act as facilitators between parties (investors & security issuers). These parties could be governments, Corporations & organizations. They provide various financial services like underwriting (Raising capital), M&A (Mergers & Acquisitions) & more. Do read further to learn about highly reputable investment banking services in Hyderabad.
Firms Providing Investment Banking Services in Hyderabad
Before delving into the various investment banking services, let’s look at the two broader functions of investment banks, Merger and acquisition (M&A) Advisory and Capital raising advisory. Capital raising advisory includes Equity undertaking and debt issuance.
Merger & Acquisition Strategic Advisory:
Broadly speaking, M&A means nothing but the consolidation of two entities more often than not to increase revenue or manage costs more optimally. It augurs very well for entities that struggle to achieve organic growth due to limited opportunities available in the market, hence they opt for this inorganic way to increase revenues and simultaneously it provides the seller the opportunity to liquidate.
This liquidating opportunity provides exiting shareholders either to sell the shares and exit or participate in the potential growth of a newly formed entity. Here investment bank guides clients (Acquirer / Seller) on the strategic logic behind such decisions and the financial repercussions of such deals. Such guidance may be regarding offer price, Buyer list building, fairness opinion, etc
It’s the umbrella term for the whole process where investment banks negotiate and raise capital from institutional investors like pension funds, hedge funds, and sovereign wealth funds on the behalf of client to ensure a fair deal in favour of the client. Such capital raising is done either through debt financing or equity issuances in the capital markets.
Top Investment Banks in Hyderabad
# Investment Banking Services in Hyderabad
1. Goldman Sachs:
The company has been serving Indian clients since the early 1990s and opened its first on-shore office in 2006 in Mumbai. The leading global financial institution in the world is headquartered in New York has a presence in all the major global financial centers and also provides investment banking services in Hyderabad, India.
The company provides the following services to its clients:
Classic investment banking: They deliver banking services worldwide in a range of industries and products. They have assigned various teams to various industries, like Consumer retail groups, Financial institution groups, healthcare care groups, Industrial, Public sector & infrastructure, Real estate, media & telecom, etc.
Merger & Acquisition (M&A): The company provides advice on shareholder activism and corporate governance pertaining issues, Capital market insights related to M&A, and Structured transactions like Spin-offs, Carveouts, divestitures, etc.
Financing Solutions: They work very closely with corporate clients, Pension funds, financial sponsors & governments to structure and execute complex financing and risk management solutions across equity, debt, and derivatives.
Operations: Here company enriches the capabilities of its clients by providing operation services in banking, sales & trading, and asset management. For eg its ensures stock and payments are ready to be traded, timely settlement of trade, and accurate reporting of trade to buyers, sellers, firms, and regulators. Further operations also look for things that don’t expose their clients to any kind of financial losses, penalties, etc.
Engineering Solutions: They just don’t build things but make things possible as innovation is what drives their business worldwide. Their engineering team builds very high magnitude scalable software and systems, low latency infrastructure solutions, leverages machine learning and Artificial intelligence in turning data into action, and provides a robust guard against cyber threats.
Transactions in Highlights:
- $7BN right issue for Reliance Industries Limited. It was one of the largest rights issues for an Indian corporation.
- Arcelor Mittal’s $7BN acquisition of Essar Steel & successful bankruptcy resolution transactions in India
- Flipkart’s $17 BN sale to Walmart.
# Investment Banking Services in Hyderabad
2. Broad Ridge:
A global fintech company with six decades of experience in providing critical infrastructure for Corporate governance, Capital markets, wealth, and investment management, provides the following investment banking services:
Asset Management: Under asset management, they provide services like:
Hedge funds: They provide technology for public and private assets.
Institutional investors: Helps in optimizing and scaling operations, meeting compliance requirements, and fulfilling fiduciary duties with our flexible investment operations platforms
Mutual funds and ETF providers: Facilitates efficiency in client’s business operations, compliance with changing regulations, and helping them understand the competitive landscape for funds and ETFs.
Retirement service providers: They help such firms in their engagement with participants, advisors, and providers of plans in a cost-effective manner. Their mutual fund trading suit, data, and analytics solution simplifies and drives growth for clients
Global investment managers: They facilitate change in an operating model that is transformational for the business and manage risk in a competitive global marketplace.
CLO managers: Portfolio management, operational automation, and risk mitigation to support increasing capital allocation in CLOs.
Private Debt: Portfolio management, operational automation, and risk mitigation to support increasing capital allocation in private debt.
Private equity: Improve and autopilot workflows, enhance efficiency, and improve service to clients, investors, and auditors.
Fund administrators and prime brokers: Help fund administrators and prime brokers attain scalability in their operations, achieve higher efficiency, stay compliant, and communicate with investors.
Capital Market & Banking: Their comprehensive modular solutions deliver competitive advantage to leading banks and broker-dealers worldwide over their competitors.
Corporate issuer: They provide Smart and strategic solutions to public companies and alternative investments such as REITs & BDCs.
Corporate Treasury: Here the bank provides exchange and match treasury-based trade confirmations for forex and money market transactions with bank counterparties on a secure, efficient system.
Issuer for Non-Listed Issuer: Strategic guidance, expertise,, and technologies for Non-Listed Issuers
Wealth Management: Wealth management firms: Wealth management firms rely on their solutions to optimize critical operations and enable advisors to provide an exceptional customer experience.
Individual Advisor Solutions: Their customizable solutions will help advisors build their brand, share their knowledge, and optimize their practice.
Trust Services Providers: It assist in mitigating risks, Optimizing operations, and helping in ensuring regulatory compliance which is tailor-made and cost-efficient for their clients.
Retirement Services Providers: It helps RSPs engage with advisors and other Participants in a cost-effective manner. Their various solutions like mutual fund trading, advisor targeting, data, and analytics simplify operations and drive growth.
# Investment Banking Services in Hyderabad
3. JP Morgan:
The bank is the most sought-after bank for seeking advice on complex business decisions and complex transactions by corporations, governments, and institutions. Their first onshore presence in India came in 1945 in Mumbai through their predecessor Chase National Bank. However now it also has offices in Bangalore and Hyderabad. JP Morgan’s investment banking services in Hyderabad are the following:
Centre for Carbon Transition: Aligning with the Paris Agreement its Center of Excellence Carbon Compass helps clients with the data and expertise needed to walk through the challenges towards Carbon carbon-neutral or low-carbon future.
ESG Solutions: It provides this solution to clients from emerging green economy sectors.
Corporate Finance Advisory: With specialization in M&A the team provides global and multi-dimensional solutions. This team works with firms in every type of industry and partners across the bank to advise on solutions.
Development Finance Institution: The main thrust is to spur the additional capital to advance the UN sustainable development goals.
Merger and Acquisitions: Provides bespoke M&A solutions on a global scale. They advise corporations and institutions of various sizes on mergers and acquisitions (M&A), meeting the most complex strategic needs locally and globally as well.
Transaction in highlight:
- 2022, Housing Development Finance Corp.’s merger with HDFC Bank Ltd.,
# Investment Banking Services in Hyderabad
4. Kotak Investment Banking:
It’s the top bank providing investment banking services in Hyderabad. It’s a subsidiary of Kotak Mahindra Bank Limited, one of India’s leading banking and financial services organizations. They provide unmatched advisory services and deal execution skills which puts them as leaders in Equity offerings and M&A transactions.
Their affiliates in the USA & UK were the first Indian-owned companies to be registered with FINRA in the USA and with FSA in the UK. They provide the following Investment banking services in Hyderabad:
Equity capital markets: The bank is the pioneer in the equity capital market and has been fully involved in path-breaking innovations in Indian capital markets like Book building in public offers and the introduction of (QIPs) Qualified institutional placements in India
- Coal India: Largest IPO in India till date, Rs 152 bn
- Coal India: Largest Equity Issuance in India, Rs 225.6 bn
- Standard Chartered: First Issuance of Indian Depository Receipts (IDRs) – Rs. 24.8 bn
- Godrej Properties: First Institutional Placement Programme (IPP) in India – Rs 4.7 bn
- SKS Microfinance: First Initial Public Offer by a Microfinance Company in India – Rs. 16.3 bn
- NTPC: First FPO under alternate book building route – Rs. 84.8 bn
- HDFC: First QIP of Equity and NCD with detachable warrants – Rs. 43.0 bn
- Hughes Software Systems: First Book Built IPO
- Maruti: First Book Built IPO with stand-by underwriting; IFR Deal of the Year
Mergers and Acquisitions: It has a wealth of experience in all kinds of M&A transactions including acquisitions, divestments, Cross-border transactions, restructuring advisory, buybacks, defense strategy, and open bidding.
- Buy-side Advisor to Advent International for the acquisition of majority Stake in Suven Pharmaceuticals and Manager to Open Offer, US$ 1.2 Billion
- Buy-side Advisor to Embassy REIT for acquisition of Embassy Tech Village, US$ 1.3 Billion
- Merger of HDFC Limited and HDFC Bank, US$ 58 Billion
- Essar Steel India – Arcelor Mittal: Financial Advisor to ArcelorMittal for the acquisition of Essar Steel India Ltd – India’s largest IBC Recovery, US$ 5.96 Billion
- Sale of Star Health to WestBridge AIF, RJ1 & Madison Capital
- Vodafone Group Plc and Vodafone India: Financial Advisor to Vodafone Group Plc and Vodafone India for the merger of Vodafone India and Idea Cellular creating India’s largest telco, US$ 23 billion. This is the largest M&A deal ever done in India.
Private equity Advisory: Financial sponsor group (FSG) provides investment banking and advisory services to global and domestic private equity, sovereign, venture, buyout, Mezzanine, and hedge fund clients. It’s the most trusted advisor to leading funds investing in India. It assists clients in identifying, evaluating, and tapping investments and exit opportunities. More over bank also provides independent advisory services to unlisted and listed companies looking to raise capital from funds.
- Aakash Educational Services: In 2019, Financial Advisor to Aakash for a partnership with Blackstone to build India’s largest digitally enabled, omni-channel education company.
- Varthana: In 2018, Series C Equity Fundraise from ChrisCapital, US$ 54 million
- Piramal: In 2017, Investment in structured QIP by CDPQ, US$ 175 million
- Bharti Infratel: In 2017, Stake purchase in Bharti Infratel by CPPIB for US$ 300 million
- State Bank of India: In 2016, Financial Advisor to State Bank of India for divestment of a 3.9% stake in its subsidiary, SBI Life Insurance, to KKR and Temasek for US$ 264 million
Infrastructure Advisory: The demand for global standard high-quality infrastructure projects is ever-increasing across the country. This has put impetus on the need for sophisticated and targeted financial advisory and fund mobilization services in this sector. Hence it has created a dedicated division for this across sectors like Power (Generation and associated Coal Mining, Transmission, and Distribution), Transportation (Roads, Seaports, Airports, and railways), Urban Infrastructure (Car Parks and Water and sewerage, etc), and Urban Transportation (MRTS, LRTS, Hi-Speed Rail Links).
# Investment Banking Services in Hyderabad
5. State Street:
One of America’s oldest financial institutions with over $40 trillion under management will soon be expanding its office in Hyderabad as the second largest after its headquarters in Boston, USA. They offer the following services:
Investment Servicing: It’s at the core of their strategy to help their client in unlocking growth and value. Four pillars of their offerings are A consistent tech-led global service model, Unmatched solutions and expertise across asset classes, Client-centric innovations, and enhanced- cloud-native, interconnected data access across the life cycle for public and private markets. Under this, they offer:
- Global Custody: It keeps clients’ assets safe in this interconnected digital world, and provides interoperability.
- Accounting: Provides resilience & agility to meet accounting requirements across client segments, and geographies and adopt customized investment strategies.
- Fund administration: Financial and regulatory reporting services, Post-trade investment compliance services, Tax administration services, Legal administration services, Expense administration, net asset value-based performance, and other treasury services
- Global transfer agency: Shareholder servicing and recordkeeping, sophisticated digital experience for clients and investors through their Global Service Platform (GSP), Capital stock, fund manager and investor reporting including NAV, Fund dividend distribution and capital gains, Broker/dealer distribution support, Tax reporting services, Regulatory compliance services (investor level)
- Risk and performance analytics: Market risk platform with their proprietary ex-ante risk platform, truView, Portfolio analytics services, Liquidity analytics services, ESG analytics services, Regulatory and industry-standard risk reporting services, and Transparency services
- Cash, deposit, and finance solutions: The Bank provides Ease of access, Simple and secure data, Quick decision-making, and Dedicated customer service
- Depositary services: Provides Safekeeping of financial instruments in our custody, Cash monitoring, fund oversight including valuation, the subscription/redemption process, distribution, timely settlement of transactions, and compliance with investment.
Global Markets: Their Global Markets solutions are an amalgamation of data, insights, and scale. They provide liquidity to their clients by providing flexible forex services like eFX, DirectFX, StreetFX, IndirectFX, and AgencyFX. Further, they provide financing solutions to make cash management simpler and more efficient and asset intelligence.
Fund Administrations: Financial and regulatory reporting services, Post-trade investment compliance service, Tax administration services, Legal administration services, Expense administration, net asset value-based performance, and other treasury services.
State Street Alpha: State Street Alpha is a platform that allows you to manage all of your investment products in a single place. Further, it provides easy access to data and analytics to help clients collaborate with confidence, work faster, and make better decisions. Click for more details on their investment banking services in Hyderabad
# Investment Banking Services in Hyderabad
6. Wells Fargo:
One of the leading investment banking service providers in the world with approximately $1.9 Trillion in assets. Wells Fargo India Solution is an indirect subsidiary of Wells Fargo Bank, N. A and it is an extension of the technology, operations, and corporate support system of Wells Fargo. It has been present in Hyderabad since 2006. The following are the services it provides:
Corporate & Investment banking: It provides full services in the Capital market, Banking, and financial products & services. Further, it provides corporate & transactional banking, commercial real estate lending & servicing, Investment banking, equity, fixed-income solutions, and research capabilities to corporates, commercial real estate, government, and institutional clients across the globe.
Corporate Risk: The bank’s corporate risk services help clients overcome Credit risk, Operational risk, and Market risk.
Finance: It includes accounting and control, financial planning & analysis, Line of business finance, asset liability management, treasury, tax management, and the company’s investment portfolios.
# Investment Banking Services in Hyderabad
7. Bank of America:
In India, they operate through three legal entities- Bank of America, N.A., India, BofA Securities India Limited, and B.A. Continuum India Private Limited. The bank offers the following investment banking services in Hyderabad:
Global Banking: Mergers and acquisitions (Advisory from concept to completion), Capital markets solution where it helps in developing debt and equity plans specific to clients needs, Cash flow and efficiency with their effective digital tools, Wealth Management, cross border international business and finance expansion services.
Global Market Solutions: It offers global sales and trading services across fixed-income, credit, currencies, commodities, and equities. Among others, these solutions include Fixed income pricing and valuation, Muncipals, and Forex.
Career Prospects in Investment Banking Services in Hyderabad
Intern or Summer intern: An internship with investment banking could be seen as an extended job interview. Generally, the main goal of interns is to win a full-time return offer. One change in recent years one can gauge is, that the internship recruitment process begins much earlier, especially for analyst roles which start as early as the undergraduate level. This has made it even more difficult for candidates from non-target schools to break the investment banking career door, hence tilting more in favor of top universities.
Analyst: Analyst working in financial institutions providing investment banking services in Hyderabad are responsible for doing financial research, and creating & implementing financial models. They assist their senior bankers by performing these tasks. A further part of their job is also drafting various legal and financial reports. They are required to have a fair grasp of regulatory and legal issues in the industry.
Associate: Investment banking associates may be the first contact point with the client in most cases. They are involved in creating investment portfolios for the client post assessing the financial needs of the client and goals of the client. Typically their days go with the preparation of cash flow models, memorandum drafting, and other communication with the client
Vice President (VP): A VP is considered an individual with his own independent thoughts and opinions and carries the first legitimate title. He is at the lowest hierarchy among the senior bankers. He is more like a head coach of a sports team who is involved with delegation rather than the nitty-gritty of things. Two major work areas are completing pitch books requiring very good analytical skills and other one is managing client relationships which also requires a good degree of soft skills and social grace.
Director or Senior VP (SVP): Also known as principal or executive director. He directly deals with many clients and acts as a bridge between clients and teams in lower ranks. The role of senior VP is distinctly different than analyst, associate, or VP mainly because here responsibility shifts the constant search for new business for the Bank.
Managing Director (MD): He is at the top of the investment banking hierarchy and is mainly responsible for the profitability of the bank. He has to all the time be aware of the political and economic environment that could potentially impact the relationship with the client or the Bank’s operation. He oversees how the deals are progressing. MD has to make bank lots of money or else in doom years he might only be surviving on the base salary only or even could be replaced as well.
Check here the best investment banking courses:
Salary of Investment Banker in Hyderabad
The salary of a candidate working in investment banking services in Hyderabad depends upon various factors like Experience, Hierarchy, and Educational qualification. However Average salary of an Investment banker in Hyderabad ranges between INR 1.9 Lakhs and INR 40 Lakhs with an annual average salary of INR 6.5 Lakhs. But salary at various hierarchies in investment banking is as follows:
|Designation||Average salary (INR)||Minimum salary (INR)||Maximum Salary (INR)|
|Analyst||14 Lakhs||2 Lakhs||28 Lakhs|
|Associate||13 Lakhs||2 Lakhs||37 Lakhs|
|Vice President (VP)||40 Lakhs||18 lakhs||71 Lakhs|
|Managing Director (MD)||3 Cr||2.9 Cr||4.98 Cr|
** The salary of MDs varies hugely due to the Bonus (100-200% of Base salary) they get in addition to their base pay. This Bonus depends upon the performance of the MD.
Scope of Investment Banking Services in Hyderabad
The Investment Banking sector is growing sector and it is expected to grow by more than 8.5% by 2023. Indian investment bankers including Investment bankers from the latest IB hotspot Hyderabad have earned 2200 Cr in 2021, making it the best year for the Indian investment banking industry. The scope of Investment banking services in Hyderabad is very promising due to the following factors:
A growing economy and increasing market activity: Increased economic activities always accentuate Investment banking services as businesses seek more and more capital for expansion, mergers, and acquisitions. The city of Hyderabad contributes around $85 Billion to India’s GDP. Factors behind Hyderabad’s economic sprint are propelled by the government’s policies, Infrastructure, Affordability, and human capital. All this has boosted investment banking services in Hyderabad.
Startup Boom in Hyderabad: Investment banks assist startups with preparing business plans, pitching themselves before investors, and connecting them with investors. Further investment banks position startups in the most attractive way before the investors, take followup with such investors post initial talks, and handle value negotiations on behalf of the budding companies. Between 2014 & 2023, The city has emerged startup magnet in India as it now boasts more than 4,369 tech startups. Further T-Hub 2.0, the world’s largest innovation hub furthers its achievements. Several startups like Greenko Group, Zenoti, Lauras Lab, and many more have secured more than $ 100 Million in funding since 2014.
FDI growth in Telangana: The Indian government’s constant opening up of the economy has created opportunities for investment banks to advise and arrange finances for companies to invest in India. The state has received $ 4, 064.96 Million FDI in the last three years apart from the latest announcement of INR 36,300 Cr investment by Amazon Web Services by 2030.
Surge in private equity and venture capital firms in Hyderabad: They play very pivotal role in arranging funding for startups and SMEs (small and medium enterprises). Unlike earlier times, now venture capitalists are taking a cautious approach to investing in more fundamentally strong startups, hence seeking investment banking services.
- State government’s thrust on making Hyderabad a global BFSI hub like Tokyo, London, and Mumbai. This led to Wall Street boss Goldman Sachs opening its third onshore sprawling office in Hyderabad. Other notable BFSI players in the city are Wells Fargo, HSBS, UBS (Cognizant), Bank of America, RBS, HDFC, Nova Scotia, State Street, and many more. New T Hub 2.0 facility in Hyderabad to further accentuate the startup ecosystem in the city.
- WE-Hub to assist women entrepreneurs in developing networks and ease of access to resources.
- Launch of Telangana Robotics Innovation Centre
- Telangana Industrial project approval and self-certification system (Ts-iPass), is an online single window system for setting up new businesses, with minimum inspection and maximum facilitation to businesses. This has catapulted the state from rank 13 in ease of doing business to rank one.
- Startup Telangana, startup India, and Standup India schemes to stimulate the startup ecosystem.
- Government’s thrust to promote diversified economic growth. Consequently, it has brought various policies like Innovation policy, Life science policy, Industrial Policy, Open data policy, Electronic Policy
Perks Investment Bankers gets
Lucrative salary: An investment banker can get as high as INR 40,00,000 annually. On top of it, they also earn very handsome commissions on deal closing, a very tempting factor for many investment bankers.
Excellent Bonus: Bonuses include a Stub bonus, End-of-year bonus, and Signing/Relocation bonus, with the End-of-year bonus most sought after. Though post covid as global deal-making took the backseat, the bonus percentage has dropped but is still very attractive. However, the bonus has been reduced from 100-200% to 30-40% of the salary due to COVID-19 after effects, unprecedented interest hikes by global central banks, wars, and volatility in the market dragged down the sentiments. Analyst generally gets almost 100% of their bonus in cash, however, some minuscule percentage might be diverted towards stock and deferred compensation. In the case of associates, diversion is 10-20%, and for MDs 30-50%.
Constant Networking Opportunity: Networking is vital in career progress and career exposure. An investment banker gets the opportunity to build relationships with top officials of the organizations. Such relations do help when sighting references when looking for a promotion or job change.
Aspirational, Competitive, and career-focused peer group: Such peer group always drives professional excellence. To sustain in such an environment requires very high analytical skills, decision-making skills, Good hold over numbers, and interpersonal skills.
Challenges of Investment Banking Job
Demanding working hours: An analyst works for 70-80 hours a week which could go up to 100 hours during closing deals. Further long working hours at the weekend and all-time availability requirements get many times quite challenging too. This is one of the factors of poor work-life balance of investment bankers.
Ruthless Competition: The one-line answer is mind mind-boggling amount of money one can make and ample exit opportunities. Investment bankers are paid way more than the average global salary with a proper career path laid out which can make you a millionaire One can taste a huge amount of money as soon as coming out of college. So lot many want to get their share of the pie. Moreover, investment bankers constantly try hard to get the clients, any insights of stock valuation or related to any future M&A deals to ensure they get promoted and cash rewards. All this takes a mental toll on many investment bankers. As the harsh reality of the demanding nature of investment banking dawns in and the glamour of money and C-suite wears off, many choose to switch the industry altogether.
Recent uncertainty in the market: The after-effects of covid lockdown and globally high-interest rate regime, geopolitics in Eastern Europe, the Middle East, and the Asia Pacific have only dragged market sentiments further. Hence investment banking deals like M&A, etc were less in number. For instance corporate sector in India raised INR 52,116 via IPOs which is 50% less than FY22 where they raised INR 1.11 Trillion.
High compliance costs: Due to high compliance and regulatory costs return on equity across the industry has fallen quite drastically as low as 7% from 20%. This compliance cost which substantially goes to IT Systems eats away as much as 70% of the profits. This has resulted in a reduction in pay cheques quite significantly.
Monotonous Job: Much of the work, especially when you are starting up as an analyst, goes into making presentations for clients, and working on the same financial models. This process requires lots of attention to detail which can get very tedious and boring. Contrary to newcomers’ expectations, initially investment banking jobs might require admin work like organizing conference calls, etc.
Frequently Asked Questions (FAQ):
Q) What are the top five investment banking firms?
A) Following are the top firms in the business that remain more or less in the top five rankings, are Goldman Sachs Group, Morgan Stanley, JPMorgan Chase & Co., Bank Of America, and CitiBank.
Q) What is the salary for investment banking services in Hyderabad?
A) The average salary is INR 9,40,000 per annum, But the range is INR 2.46 lakh to 70 lakh per annum.
Q) Which investment bank pays the highest salary?
A) Top hires of investment bankers are ICICI Securities, HDFC Banks, Goldman Sachs, Morgan Stanley, and Axis Bank.
Q) Is an MBA necessary for investment banking?
A) No!, But an MBA certainly is preferred and so is a CFA or CA. Without an MBA one can enter at a junior level and can achieve success in investment banking or even can think of pursuing an MBA after spending a few years in investment banking.