Equity & Equity Capital Markets
Companies are primarily funded through Equity infusion by promoters, internal accruals and borrowed debt. As the company grows at express speed, the above three may not be sufficient to deliver the potential results. At this stage, companies tend to explore external source of equity funding.
Private Equity placements and Public Issue of IPO are the most common routes taken by corporates. Now for smaller corporates, SME IPO has emerged as a popular route for equity raising.
We analyse companies to compute their Enterprise Value (EV) and Equity Value. The said analysis is used by such corporates to take decision on Equity raising through Public or Private Routes (VC Funding and Equity IPO). All the three major techniques of DCF Analysis, Transaction Analysis and Trading Multiples Analysis are used in the same.
Debt & Debt Capital Markets
Once a company reaches a position wherein its credit rating is strong, it can access debt capital markets to raise debt.
Companies can use products like Commercial Papers can be used by companies for their Working Capital Management. For longer tenor funding, companies can use products like Non-Convertible Debentures.
The major advantages to raising debt through DCM are
- Lower Cost of Capital
- Structured Products and
- Flexible End Use