Cases in Corporate Finance includes 60 unique case studies that illustrate the application of finance theories, models, and frameworks to real-life business situations. The topics cover a wide range of sectors and different life cycle stages of firms. The book bridges a crucial gap in topical emerging market case coverage by presenting industry-relevant case studies in the Indian context and on themes pertinent to the current business environment.
Through the case studies included in the book, the authors offer insights into the essential areas of corporate finance, including risk and return, working capital management, capital budgeting and structure, dividend decisions, business valuation, and long-term financing. Cases included in the book are decision-focused and provide opportunities to carefully analyse risk-return trade-offs and apply tools to evaluate critical financial decisions.
The book will be helpful for students, researchers, and instructors of business management, commerce, and economics.
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
Biography
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.
