Arpwood

Role: Investment Banking Analyst/Associate

College: SRCC (Shri Ram College of Commerce)

Interview Date: Not Specified

Interview Type: On-Campus, Full-Time

Result: Not Specified

Difficulty: Medium

Rounds: 3 interview rounds + Aptitude Test

Topics Asked: Data Interpretation, Logical Reasoning, Quantitative Ability (Probability, Permutation & Combination, Sequences & Series, Equations), Beta, Enterprise Value, Trading Multiples (P/E, P/Sales), DCF Model, Startup Valuation, NPV vs IRR, WACC, Cash Flow Statement, Balance Sheet, Income Statement, Financial Ratios (Liquidity, Solvency, Activity), Tax Structure, Long term and short term capital gains, Economics (Anti-dumping duty, Interest rates, Currency movements, Inflation, Fiscal and Monetary methods), M&A Industry (Tata Steel's UK Disinvestment, Idea-Vodafone), Why Investment Banking, Why Arpwood Capital, Internship questions, Biggest Failure, Corporate Communication Cell, Family business, Future Plans, Why should we take you/USP.

Experience:

This interview experience outlines the selection process for Arpwood Capital, an investment banking firm, likely for an Analyst or Associate role through an on-campus recruitment drive at SRCC. The process involved several stages: CV shortlisting, an Aptitude Test, a Case + Technical Interview, and an HR Interview.

Round 1: CV Shortlisting
Candidates were initially shortlisted based on their resumes.

Round 2: Aptitude Test
The aptitude test consisted of 18 questions covering topics such as data interpretation, logical reasoning, and quantitative ability. Quantitative topics included probability, permutation and combination, sequences and series, and equations.

Round 3: Case + Technical Interview
This round delved into both technical finance concepts and case study questions. Specific technical questions included:

• Explanation of Beta, its logic, calculation, and use as a hedging strategy.
• Enterprise Value (EV) explanation with its formula, and types of companies valued using EV.
• Trading multiples used for valuation, such as P/E and P/Sales.
• DCF Model and topics related to startup valuation.
• Major differences between NPV and IRR, with a capital budgeting example.
• Calculation of WACC (Weighted Average Cost of Capital).
• Cash Flow Statement, Balance Sheet, Income Statement related topics, and financial ratios formula and explanation (liquidity, solvency, activity, etc.).
• Tax structure, long-term and short-term capital gains, and taxes on them.
• General economics questions covering anti-dumping duty, interest rates, currency movements, inflation, and fiscal and monetary methods adopted by the central bank.
• Discussions on major M&A industry events, such as Tata Steel's UK Disinvestment and the Idea-Vodafone merger.

Round 4: HR Interview
The HR round focused on behavioral and motivational aspects. Questions included:

• "Why Investment Banking?"
• "Why Arpwood Capital and not any bulge bracket IB firm?"
• Questions about prior internships.
• "Biggest Failure."
• Questions on involvement with the Corporate Communication Cell (Union) and the work involved.
• General discussion about family business.
• "Future Plans."
• "Why should we take you/USP (Unique Selling Proposition)?"

Tips and Suggestions:
Candidates were advised to stick to basics and keep their concepts clear. Preparation tips included:

• Practicing aptitude questions online or using CAT/GMAT books.
• For case studies, reading case books (Ace Your Case volumes, Case In Point, HBS case book, IIM A case book, etc.) and practicing cases, guesstimates, and brain teasers in a group.
• For finance-related preparation, reading Vault Guide to Finance Interviews, CFA Level 1 books (Financial Reporting and Analysis, Corporate Finance), and supplementing with corporate finance videos by Aswath Damodaran.
• Revisiting Financial Accounting, Corporate Accounting, Management Accounting, and Financial Management books from academic semesters.
• Reading financial newspapers like Mint or Economic Times to connect theory with practical topics.
• Preparing a list of HR questions, framing logical and concise answers, and practicing mock interviews with friends.