Cases in Corporate Finance

PART I 

Financial Planning and Working Capital Management 9 

1 Monark Building Materials: Estimating Working Capital Fund Requirements 11 

2 Amber Enterprises: Working Capital Assessment for Seasonal Business 15 

3 ValueBuy Retail: Working Capital Requirement for High Growth Business 24 

4 Ashok Leyland: Managing Liquidity through the Cycles 30 

5 Shoppers Stop: The Covid-19 Halt 41 

6 Cash Budgeting at Parishkar Cleantech 47 

7 Spark Electricals: Reviewing FMEG Business Credit Policy 51

8 Break-Even Analysis of Sri Krishna Restaurant 55 

9 Ikon Paints: Long-Term Financial Plan 59

10 Credit Rating of Dinesh Organics 65

11 Tata International 70

PART II

Capital Budgeting Decisions 87

12 Ranjit’s Delivery Vans: Making the Replacement Decision 89

13 Moody Singh’s Food Truck: Scaling up the Business 92

14 DBS Auto’s Electric Two-Wheelers: Cash Flow Projections 96

15 Evaluating Investment Choices for “The Oriental” Restaurant 102

16 BreathFresh: Evaluating Launch of Ayurvedic Toothpaste 108

17 AMEX: Evaluating New Business Opportunity 112

18 Safewheels: Evaluating Investment in Electric Vehicles (EV) Fleet 117

19 PVR Cinema: Should it Take OTT Plunge? 122

20 Neogene Tyres: Capital Budgeting Under Uncertainty 130

21 Ashian Biotech: The AntiCov Vaccine Project 139

PART III

Risk and Return, and Cost of Capital 145

22 InvestmentWaves (A): Assessing Client’s Life Insurance Requirement 147

23 InvestmentWaves (B): Assessing LIC’s New Jeevan Shanti 152

24 WealthFrog: Risk-Return Trade-off of Individual Assets vs Portfolio of Assets 158

25 Kirtan’s Dilemma: How to Use Risk-Return Analysis to Build a Superior Portfolio? 163

26 BlueStar AMC: Assessing Impact of New Valuation Norms on Debt Funds 168

27 Apex Frozen Foods: The Cost of Capital 177

28 Huarache India Ltd: The Cost of Capital 183

29 Balaji Wafers Pvt Ltd: The Cost of Capital 189

30 ITC Ltd: The Divisional Cost of Capital 194

31 DBS Auto’s Electric Two-Wheelers: Cost of Capital 200

32 Bhagyodya Stampings Pvt Ltd: Hedge or not to Hedge? 206

33 Great Eastern Shipping: Risk Management 209

PART IV

Capital Structure and Dividend Decisions 219

34 The Hotel Industry’s Leverage at Play 221

35 Avenue Supermarts’ Capital Structure 229

36 Reliance Industries Limited: Capital Structure Decision 241

37 Yes Bank: The AT-1 Bonds Saga 250

38 InvestmentWaves (C): Evaluating Cash Dividend vs Homemade Dividend 258

39 Dividend Payout at Mahindra and Mahindra 264

40 Investor Payouts at Wipro 272

PART V Business Valuation 279 41 The Valuation of KrissKross Hotels 281 42 Kotak Mahindra Bank Ltd: Challenges in Valuation of Financial Services Firm 292 43 Ashian Biotech: Acquisition of Myanti Biopharma 298 44 Valuation of 212 Degrees Fahrenheit 305 45 PVR’s Acquisition for SPI Cinema: An Expensive Southern Excursion? 310 46 Reliance Industries Limited (A): Valuation of RIL’s O2C Business 317 47 Reliance Industries Limited (B): Valuation of Jio Platforms 323 48 Reliance Industries Limited (C): Valuation of Reliance Retail 329 49 Swift Communications: Valuing Synergy Gains in an Acquisition 336 50 ITC Ltd: EVA Analysis of FMCG and Hotel Divisions 339 51 Venu’s ESOP Choices (A): ESOPs of a Listed Company 346 52 Venu’s ESOP Choices (B): ESOPs of a Start-Up 349 PART VI Long-Term Financing 355 53 Rossari BioTech: An IPO in the Indian Stock Market 357 54 Reliance Industries Ltd: The Tale of India’s Largest Rights Issue 366