Financial Market Services

DSB provides wide range of Financial Market Services to cater to the needs of the client with the objective to enrich value at low cost.

Advisor consultant in issues of shares and other securities:

Capital is critical for business growth. Companies can raise capital through debt or equity. Debt is issued in the form of bonds, debentures, promissory notes etc, and equity is issued in the form of shares. An investor who purchases a new issue should be aware of all the risks associated with investing  in a product that has only been available to the public for a short time; new issues often prove to be rather volatile and unpredictable. Share values may surge up or down on the day of issue. Various types of securities under private placement or public are advised to take care of the investor’s interest simultaneously providing required resources to the Company.


Public Issue: Public Issue is done when company plans to raises funds by selling (issuing) its shares (or debenture / bonds) to the public through issue of offer document (prospectus). Initial Public Offer (IPO): When a (unlisted) company makes a public issue for the first time and gets its shares listed on stock exchange, the public issue is called as initial public offer (IPO).Follow-on public offer (FPO): When a listed company makes another public issue to raise capital, it is called follow-on offer (FPO).

Offer For Sale: Institutional investors like venture funds, private equity funds etc., invest in unlisted company when it is very small or at an early stage. Subsequently, when the company becomes large, these investors sell their shares to the public, through issue of offer document and the company’s shares are listed in stock exchange. This is called as offer for sale. The proceeds of this issue go the existing investors and not to the company.

Private Placement: The sale of securities to a relatively small number of select investors for raising capital. Investors involved in private placements are usually large banks, mutual funds, insurance companies and pension funds. Private placement is the opposite of a public issue, in which securities are made available for sale on the open market.

Issue of Indian Depository Receipts (IDR): A foreign company which is listed in stock exchange abroad can raise money from Indian investors by selling (issuing) shares. These shares are held in trust by a foreign custodian bank against which a domestic custodian bank issues an instrument called Indian depository receipts (IDR).IDR can be traded in stock exchange like any other shares and the holder is entitled to rights of ownership including receiving dividend.

Rights issue (RI): When a company raises funds from its existing shareholders by selling (issuing) them new shares / debentures, it is called as rights issue. The offer document for a rights issue is called as the Letter of Offer and the issue is kept open for 30-60 days. Existing shareholders are entitled to apply for new shares in proportion to the number of shares already held.

Bonus Issue: The company issues new shares to its existing shareholders. As the new shares are issued out of the company’s reserves (accumulated profits), shareholders need not pay any money to the company for receiving the new shares.

Drafting of prospectus/offer for sale/ letter of offer/other documents related to issue of securities and obtaining various approvals in association with lead managers:

A draft prospectus provides the information on the financials of the company, promoters, background, tentative issue price etc. This section of the prospectus summarizes the past, present and future financial position of the company.  It includes a current balance sheet with a profit and loss statement as well as any pro forma statements about future revenue and expenses. It is filed by the Lead Managers with the Securities & Exchange Board of India (SEBI) to provide issue details. The final prospectus is printed after obtaining the clearance from SEBI and the Registrar of Companies (ROC). Our team will ensure that your prospectus offering document is drafted with structure and style and in conformance with investment industry best practices.

1. Listing / delisting of securities :

Listing means admission of securities to dealings on a recognized stock exchange. The securities may be of any public limited company, Central or State Government, quasi governmental and other financial institutions/corporations, municipalities, etc.

A company, desirous of listing its securities on the Exchange, shall be required to file an application, in the prescribed form, with the Exchange before issue of Prospectus by the company, where the securities are issued by way of a prospectus or before issue of ‘Offer for Sale’, where the securities are issued by way of an offer for sale.

Delisting of securities means permanent removal of securities of a listed company from the stock exchange where it was registered. As a result of this, the company would no longer be traded at that stock exchange.
The objectives of listing are mainly to:
• provide liquidity to securities;
• mobilize savings for economic development;
• protect interest of investors by ensuring full disclosures.

A company has to enter into a listing agreement before being given permission to be listed on the exchange. Under this agreement the company undertakes amongst other things, to provide facilities for prompt transfer, registration, sub-division and consolidation of securities: to give proper notice of closure of transfer books and record dates, Annual reports, balance sheets and profit & loss accounts, to file shareholding patters and financial results on quarterly basis and to intimate promptly to the exchange the happenings which are likely to materially affect the financial performance of the company and its stock price and to comply with the conditions of Corporate governance.

Compulsory delisting refers to permanent removal of securities of a listed company from a stock exchange as a penalizing measure at the behest of the stock exchange for not making submissions/comply with various requirements set out in the Listing agreement within the time frames prescribed. In voluntary delisting, a listed company decides on its own to permanently remove its securities from a stock exchange. This happens mainly due to merger or amalgamation of one company with the other or due to the non-performance of the shares on the particular exchange in the market.

A stock exchange may compulsorily delist the shares of a listed company under certain circumstances like:
• non-compliance with the Listing Agreement. for a minimum period of six months.
• failure to maintain the minimum trading level of shares on the exchange.
• promoters’ Directors’ track record especially with regard to insider trading, manipulation of share prices, unfair market practices (e.g. returning of share transfer documents under objection on frivolous grounds with a view to creating scarcity of floating stock, in the market causing unjust aberrations in the share prices, auctions, close-out, etc. (Depending upon the trading position of directors or the firms).

2.Private placement of securities:

Private placement occurs when a company makes an offering of securities to an individual or a small group of investors. Since such an offering does not qualify as a public sale of securities, it does not need to be registered with the Securities and Exchange Board of India (SEBI) and is exempt from the usual reporting requirements. Private placements are generally considered a cost-effective way for small businesses to raise capital without “going public” through an initial public offering (IPO).
A private placement may also enable a small business owner to hand-pick investors with compatible goals and interests. Since the investors are likely to be sophisticated business people, it may be possible for the company to structure more complex and confidential transactions. If the investors are themselves entrepreneurs, they may be able to offer valuable assistance to the company’s management. Finally, unlike public stock offerings, private placements enable small businesses to maintain their private status.


1. MAXIMUM NUMBER OF PERSONS: An offer for private placement can be made to not more then 200 people in a financial year. In case of NBFCs and NCDs of maturity of more then 1 year, there are two separate categories- more then INR 1 crore per investor and less then INR 1 crore per investor. In case of NCDs issuance with less then INR 1 crore per investor there is a limit of 200 subscribers for each financial yearand such subscriptions shall be fully secured.

2. MINIMUM AMOUNT OF OFFER FOR AN INDIVIDUAL: The value of the offer per person shall not be less then INR 20000 of face value of securities.

3. PERSONS TO WHOM AN OFFER CAN BE MADE: All offers shall be made only to those persons whose names are recorded by the company prior to the invitation to subscribe and allotments can be made only to such persons who have been addressed and the offer is made along with the Offer letter.

4.MODE OF PAYMENT: All monies payable towards subscription of securities under this section shall be paid through cheque or demand draft or other banking channels but not by cash.

5.NO ADVERTISEMENT OF OFFER: No company offering securities under private placement shall release any public advertisements or utilize any media, marketing or distribution channels or agents to inform the public at large about such an offer.

6.BANK ACCOUNT: The application money received from the private placement offer shall be deposited in a separate bank account in a scheduled bank.

7.MINIMUM GAP BETWEEN TWO OFFERS: A company can come with a new offer after completion of the earlier offer. However, no fresh offer or invitation shall be made unless the allotments with respect to any previous offer or invitation have been completed or been withdrawn or abandoned by the company.

3. Buy-back of shares:
It can be described as a procedure which enables a company to go back to the holders of its shares and offer to purchase the shares held by them.
Buy-back helps a company by giving a better use for its funds than reinvesting these funds in the same business at below average rates or going in for unnecessary diversification or buying growth through costly acquisitions.

Why a company would opt for buy-back:

1. To improve shareholder value, since buy-back provides a means for utilizing the companies surplus funds which have unattractive alternative investment options, and since a reduction in the capital base arising from buy-back would generally results in higher earnings per share (EPS).

2. It is used as a defense mechanism, in an environment where the threat of corporate takeovers has become real. Buy-back provides a safeguard against hostile take-over by increasing promoter’s holdings.

3. It would enable corporate to shrink their equity base thereby injecting much needed flexibility.

4. It improves the intrinsic value of the shares by virtue of the reduced level of floating stock.

5. It would enable corporate to make use of the buy-back shares for subsequent use in the process of mergers and acquisitions without enlarging their capital base.

6. Buy-back of shares is used as a method of financial engineering.

7. It is used for signaling the effects of buy-back on the share price.

Valuation & Financial Market Advisory Services

DSB provides a diverse and comprehensive service offering that meets the demands of today’s transaction environment. Our clients benefit from our practical advice, and innovative solutions rooted in deep industry and capital market experience. We provide customised solutions based on a careful analysis of client needs, culture and organisational processes. Our rich experience in capital markets and strong institutional investor relationships help clients meet their financing and growth objectives.


Private equity is capital that is not listed on a public exchange. Private equity is composed of funds and investors that directly invest in private companies, or that engage in buyouts of public companies, resulting in the delisting of public equity. Institutional and retail investors provide the capital for private equity, and the capital can be utilized to fund new technology, make acquisitions, expand working capital, and to bolster and solidify a balance sheet.

Private equity investment comes primarily from institutional investors and accredited investors, who can dedicate substantial sums of money for extended time periods. In most cases, considerably long holding periods are often required for private equity investments in order to ensure a turnaround for distressed companies or to enable liquidity events such as an initial public offering (IPO) or a sale to a public company.


It is a private or institutional investment made into early-stage / start-up companies (new ventures). As defined, ventures involve risk (having uncertain outcome) in the expectation of a sizeable gain. Venture Capital is money invested in businesses that are small; or exist only as an initiative, but have huge potential to grow. The people who invest this money are called venture capitalists (VCs). The venture capital investment is made when a venture capitalist buys shares of such a company and becomes a financial partner in the business.

Venture Capital investment is also referred to risk capital or patient risk capital, as it includes the risk of losing the money if the venture doesn’t succeed and takes medium to long term period for the investments to fructify.
It is the money provided by an outside investor to finance a new, growing, or troubled business. The venture capitalist provides the funding knowing that there’s a significant risk associated with the company’s future profits and cash flow. Capital is invested in exchange for an equity stake in the business rather than given as a loan.

Venture Capital is the most suitable option for funding a costly capital source for companies and most for businesses having large up-front capital requirements which have no other cheap alternatives.


Financing is a crucial aspect of running your company from start-up through the growth, expansion, and exit stages of the business. In recent years, financing has been exceedingly more difficult to obtain and maintain. DSB has established banking relationships with lenders and we are experienced with raising capital and restructuring debt. Let our experience help you to find opportunities to reduce the overall cost of financing, to improve cash flow, and to secure lender financing.

We will:

Evaluate your specific capital needs
Investigate financing options & market conditions
Assist with negotiations so you obtain the best financing deal
Help business owners to stay focused on the business
Assist with lender requirements & requests, including current financial statements, updated financial projections or an updated business plan

Budgeting & Projections

A budget details your plans to acquire and use resources. At the beginning of the period, the budget is a plan. At the end of the period, it serves as a control device to help measure your company’s performance against the plan so that future performance may be improved. DSB would work with your management team to develop a budget. Often, budgets are used to advise the board of directors and we can help to interpret the financial results and position of your operations.

Trend Analysis & Benchmarking

Tracking the financial trends and key ratios of your business are great ways to monitor your business’s progress and performance. Your company’s key ratios are even more informative when compared with others in a similar industry. At DSB we assist you in determining the key financial data to monitor; we help you to calculate and chart the results; and we provide comparisons of companies that are similar in size and industry.

A snapshot of your company’s trends, ratios, and benchmark data helps to present a clear financial picture of your business. Knowing your relationship to competitors in your market also helps you to focus on your strengths and identify areas for improvement.