Cases in Corporate Finance

Mayank Joshipura is a Professor of Finance, Associate Dean-Research, and Chairperson of the Ph.D. programme at the School of Business Management, NMIMS Deemed to be University, Mumbai. He holds a Ph.D. and an MBA in Finance and a Bachelor of Engineering degree in Power Electronics. He attended and completed a certificate programme on “Creating Value through Financial Management” from the Wharton Business School, USA, and the Glocoll progamme from Harvard Business School, USA. He has two and half decades of experience in management education, research, and consulting. Sachin Mathur is Associate Professor, Finance, at the School of Business Management, NMIMS Deemed to be University, Mumbai. He holds an MMS degree and a Ph.D. from NMIMS, Mumbai and a Bachelor of Technology degree in Chemical Engineering from Institute of Technology, BHU, Varanasi. He has over 15 years of industry experience including as Head of Research at CRISIL Ltd. He is a CFA charter holder.

List of Exhibits

Acknowledgements

Abbreviations

Introduction

PART I: Financial Planning and Working capital management

1 Monark Building Materials: Estimating Working Capital Fund Requirements

2 Amber Enterprises: Working Capital Assessment for Seasonal Business

3 ValueBuy Retail: Working Capital Requirement for High Growth Business

4 Ashok Leyland: Managing Liquidity through the Cycles

5 Shoppers Stop: The Covid-19 Halt

6 Cash Budgeting at Parishkar Cleantech

7 Spark Electricals: Reviewing FMEG Business Credit Policy

8 Break-Even Analysis of Sri Krishna Restaurant

9 Ikon Paints: Long-Term Financial Plan

10 Credit Rating of Dinesh Organics

11 Tata International

PART II: Capital Budgeting Decisions

12 Ranjit’s Delivery Vans: Making the Replacement Decision

13 Moody Singh’s Food Truck: Scaling up the Business

14 DBS Auto’s Electric Two-Wheelers: Cash Flow Projections

15 Evaluating Investment Choices for “The Oriental” Restaurant

16 BreathFresh: Evaluating Launch of Ayurvedic Toothpaste

17 AMEX: Evaluating New Business Opportunity

18 Safewheels: Evaluating Investment in Electric Vehicles (EV) Fleet

19 PVR Cinema: Should it Take OTT Plunge?

20 Neogene Tyres: Capital Budgeting Under Uncertainty

21 Ashian Biotech: The AntiCov Vaccine Project

PART III: Risk and Return, and Cost of Capital

22 InvestmentWaves (A): Assessing Client’s Life Insurance Requirement

23 InvestmentWaves (B): Assessing LIC’s New Jeevan Shanti

24 WealthFrog: Risk-Return Trade-off of Individual Assets vs Portofino of Assets

25 Kirtan’s Dilemma: How to Use Risk-Return Analysis to Build a Superior Portfolio?

26 BlueStar AMC: Assessing Impact of New Valuation Norms on Debt Funds

27 Apex Frozen Foods: The Cost of Capital

28 Huarache India Ltd: The Cost of Capital

29 Balaji Wafers Pvt. Ltd: The Cost of Capital

30 ITC Ltd: The Divisional Cost of Capital

31 DBS Auto’s Electric Two-Wheelers: Cost of Capital

32 Bhagyodya Stampings Pvt. Ltd: Hedge or not to Hedge?

33 Great Eastern Shipping – Risk Management

PART IV: Capital Structure and Dividend Decisions

34 The Hotel Industry’s Leverage at Play

35 Avenue Supermarts’ Capital Structure

36 Reliance Industries Limited: Capital Structure Decision

37 Yes Bank: The AT-1 Bonds Saga

38 InvestmentWaves (C): Evaluating Cash Dividend vs Homemade Dividend

39 Dividend Payout at Mahindra and Mahindra

40 Investor Payouts at Wipro

PART V: Business Valuation

41 The Valuation of KrissKross Hotels

42 Kotak Mahindra Bank Ltd: Challenges in Valuation of Financial Services Firm

43 Ashian Biotech: Acquisition of Myanti Biopharma

44 Valuation of 212 Degrees Fahrenheit

45 PVR’s Acquisition for SPI Cinema: An Expensive Southern Excursion?

46 Reliance Industries Limited (A): Valuation of RIL’s O2C Business

47 Reliance Industries Limited (B): Valuation of Jio Platforms

48 Reliance Industries Limited (C): Valuation of Reliance Retail

49 Swift Communications: Valuing Synergy Gains in an Acquisition

50 ITC Ltd: EVA Analysis of FMCG and Hotel Divisions

51 Venu’s ESOP Choices (A): ESOPs of a Listed Company

52 Venu’s ESOP Choices (B): ESOPs of a Start-Up

PART VI: Long-Term Financing

53 Rossari BioTech: An IPO in the Indian Stock Market

54 Reliance Industries Ltd: The Tale of India’s Largest Rights Issue

55 Bharti Airtel’s FCCB

56 BPL Limited: In Search of Innovative Financing Options

57 Financing Joyzz Nutrixx

58 Nirma’s Acquisition of Lafarge India

59 Financing Decision at BlackGold Petroleum Company Ltd: Corporate Finance vs Project Finance

60 PowerGrid InvIT: What Is in It for the Issuer and Investors?

Index