Corporate Finance

Paper Code: 
24BCS512
Credits: 
03
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

Course Objectives:

This course will enable the students to acquire practical and procedural knowledge on various sources of finance available to corporates at their various stages of journey and the legislative framework for raising such funds.

 

Course Outcomes: 

Course

Learning outcome

(at course level)

Learning and teaching strategies

Assessment Strategies

Course Code

Course

Title

 

24BCS512

 

Corporate Finance (Theory)

CO 1:Examine the concepts relating to Alternative Investment Fund, Regulatory Framework governing AIF in India, Angel Fund and Scheme of Angle Fund, their working mechanism, types of AIF, their winding up etc. and Foreign Venture Capital

Investors (FVCI)

CO 2:Interpret the expert knowledge on the various aspects and compliance requirement for making public and private funding.

CO 3:Analyze various compliances required to be fulfilled under Debt funding and non-fund based funding.

CO 4:Assess the various compliances required under Foreign funding.

CO 5:Explore the role of intermediaries and various factors affecting project evaluation.

CO 6:Contribute effectively in course – specific interaction.

Approach in

teaching: Interactive Lectures, Discussions, Tutorials, Problem solving sessions, Presentations

 

 

Learning activities for the students: Self-learning assignments, Case Study Analysis, Presentations, Group Discussions

 

Continuous Assessment Test, Semester End Examinations, Quiz, Assignments, Class Presentations, Individual and group projects.
 

 

9.00
Unit I: 
Sources of Corporate Funding
  • Equity Shares, Preference Shares,, Venture Capital,
  • Alternative Investment Funds, Angel Funds,
  • Debentures, Bonds, Loan from financial institutions,
  • Foreign Funding, Foreign Direct Investment (FDI) &
  • Foreign Institutional Investment (FII),
  • External Commercial Borrowings (ECB),
  • Private Equity, Securitization.

 

 

9.00
Unit II: 
Funding Mechanism and investment options

Raising of Funds from Equity and Procedural aspects:

  • Public Funding, Initial Public Offer (IPO), Further Public Offer (FPO),
  • Preferential Allotment, Private Placement,
  • Qualified Institutional Placement, Institutional Private Placement,
  • Offer for Sale, Rights Issue, Fast Track Issue, Green Shoe Option.

Sources of Funds for Mega projects:

  • Real Estate Investment Trust (REIT),
  • Infrastructure Investment Trust (InvIT)

Private funding:

  • Venture Capital, Alternative Investment Fund,
  •  Angel Funds, Seed Funding, Private Equity

Non Fund based:

  • Bonus issue, Sweat Equity, ESOP (e)
  •  An overview on Listing and
  • Issuance of Securities in International Financial Services Centre
9.00
Unit III: 
Overview of Indian Funding Mechanism

Indian Fund Based:

  • Debentures, Non-Convertible Securities, Public Deposits,
  • Bonds, Bank Finance, Promoter Funding,
  • Working Capital Finance – Overdrafts, Cash Credits Bill Discounting,
  • Factoring, NBFCs Funding.

Indian Non Fund Based:

  • Letter of Credit, Bank Guarantee, Stand by Letter of Credit etc.

 

 

9.00
Unit IV: 
Overview of Foriegn Funding Mechanis

Foreign Funding–Institutions:

  • International Finance Corporation (IFC),
  • Asian Development Bank (ADB),
  • International Monetary Fund (IMF), World Bank.

Foreign Funding–Instruments, laws and Procedures:

  • External Commercial Borrowing (ECB),
  • American Depository Receipt (ADR)/Global Depository Receipt (GDR),
  • Foreign Currency Convertible Bonds (FCCB),
  • Foreign Currency Exchangeable Bonds (FCEB)

 

9.00
Unit V: 
Intermediaries Evaluation And Risk Management In Project Finance

Role of Intermediaries in fund raising:

  • Investment Advisor, Merchant Banker, Portfolio Manager
  • Role of Company Secretary

Project Evaluation:

  • Factors affecting the cost of project,
  • Project appraisal through feasibility and Due Diligence (Technical, Financial, and Legal), Project viability and research on innovation,
  • Regulatory Authorities/ agencies, Risk Assessment and mitigation,
  • Credit Risk Management in Project Finance, Preparation of detailed project report

 

Essential Readings: 

Essential Readings:

  1. Study Material Published by ICSI

 

References: 

Suggested Readings:

  1. Scanner-ArunKumar(ShuchitaPrakashans(P) Ltd)
  2. Stephen A. Ross Corporate Finance (SIE)
  3. Corporate Finance Paperback by Ahuja Narender L., Dawar Varun, Arrawatia Rakesh
  4. Fundamentals of Corporate Finance by Puyja Padhi

 

E- Content:

  1. https://www.icsi.edu/media/webmodules/ICSI%20New%20Syllabus%202022.pdf
  2. https://www.icsi.edu/e-journals/

 

 

 

Academic Year: 
2024-2025
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