A booming capital market, flood of foreign investment, frantic mergers and acquisition activity and indigenous corporates targeting foreign takeovers have made investment banking a hot new career Even India’s modest two-steps-forward-one-step-back economic liberalisation initiatives of the past two decades have transformed the nation into the fastest growing economy worldwide. A booming capital market, a flood of foreign investment, frantic mergers and acquisition activity, and indigenous corporate targeting foreign takeovers have made investment banking a hot new career option for youth with big numbers, corporate funding, and restructuring on their mind. An investment banker transacts with corporates providing advisory financial services in connection with the issue of new securities for raising finance for takeovers, mergers, and acquisitions. He/ she also manages share portfolios, capital market operations of companies and often the wealth management of valued corporate clients. A postgraduate degree in business management with specialisation in finance preferably from the IIMs or other top B-schools, or chartered or cost accountancy qualifications are ideal, but graduates with a strong financial background could also have the red carpet rolled out for them. The banking and finance sector is currently facing an acute shortage of talent, hence everyone with a background in finance, sound analysis, and mathematical skills can get a break in this profession. Opportunities are also multiplying for investment bankers in mutual funds, brokerage firms, insurance companies, merchant banks, and other financial institutions. However, an investment banker should possess strong interpersonal communication and sales skills and most importantly, must have the stamina to work long hours. Investment bankers also need to develop a sound knowledge of the business world and awareness of corporate developments. An investment banker usually starts her career as an analyst writing reports, maintaining spreadsheets, trading stock options, doing research etc. As she scales the ladder she begins advising companies on capital formation, mergers, acquisitions, investment options, managing capital assets, and/or liaising with government and financial institutions. FINANCIALLY BENEFICIAL CAREER. Apart from the glamour and variety of work, it’s big bucks which are the charm of this profession. The starting salary of analysts is Rs.5 lakh per annum or thereabouts. And after a few years’ experience, an investment banker usually moves into the Rs.10 lakh per annum (plus bonuses) bracket, depending upon the size of the employer company. Recently mint-fresh IIM graduates were snapped up by foreign banks with pay packages of Rs.1 crore per year. “With the stockmarket experiencing an unprecedented boom and a lot of money being invested in equities and equity-related funds, investment bankers who can provide intelligent advice and project market trends are in great demand, and investment banking has become a preferred career option,” avers Sangeetha Sanghvi, the Mumbai-based founder of Equity & More, a boutique investment advisory firm. A commerce graduate of Mumbai’s H.R. College, Sanghvi began her career in 1985 as a salesperson of Brother Business Machines. In 1991 she signed up with Jamnadas Morarjee & Co to market fixed deposits and other financial products. However, she simultaneously pursued her management studies…
