RIL AND RPL MERGER CASE STUDY

In mergers the swap ratio is determined based on the intrinsic value of the respective companies, which is in turn decided based on various parameters, ie. Merger ratio favours RPL shareholders: Your Reason has been Reported to the admin. Wait for it… Log in to our website to save your bookmarks. Objectives of the Study: Not all shareholders waited for the announcement.

This will alert our moderators to take action Name Reason for reporting: Your session has expired, please login again. Being bought out often carries negative connotations, therefore, by describing the deal euphemistically as a merger, deal makers and top managers try to make the takeover more palatable. Generally, the company that survives is the buyer which retains its identity and the seller company is extinguished. However, on book value basis, the ratio works out to be adverse for the RPL shareholders.

The issue had a size of Rs 2, crore and like the one inthe offer price was Rs 60 per unit.

ril and rpl merger case study

However, an exchange of shares takes place etudy the entities involved in such process. This clearly indicates that the Company has realized some losses of the target company which might be due to the costs incurred during the merger period or so. Also the average return on Net worth for the same company before merger was The present study is an attempt to find out the difference in post merger financial performance compared with pre merger in terms of profitability and generating more value than the separate firms, resulting in consolidation, refocusing and restructuring of the industry with a motive of faster mechanism.

RIL-RPL merger: Who benefits?

By andd the cash-flow performance in the five-year period following mergers, the study found evidence of improvements in operating performance, and also that the pre and post-merger performance was highly correlated. The following 4 major financial ratios and their means were calculated for analyzing the financial performance of the companies: Being bought out often carries negative connotations, therefore, by describing the deal euphemistically as a merger, deal makers and top managers try to make the takeover more palatable.

  UNSW MECH THESIS

Merger has no rating impact on RIL: The principal benefits from mergers and acquisitions can be listed as increased value generation, increase in cost efficiency and increase in market share.

Click here to sign up. In mergers the swap ratio is determined based on the intrinsic value of the respective companies, which is in turn decided based on various parameters, ie.

The data of just preceding years of the year the merger studt place has been considered for pre-merger study and the data for the year has been used for post merger study. RPL, then went public late that year to raise funds with a public issue of Rs crore, making it among the largest for the time. Enter the email address you signed up with and we’ll email you a reset link. There is no considerable difference between pre and post merger financial performance.

RIL-RPL merger complete

Never miss a great news story! Thus, a book value based swap ratio does not serve any purpose in this case. Who benefits from the merger? Thus, the proposed merger would help RIL utilise this Cash flows in its other business verticals in a fruitful manner. Your session has expired, please login again. Related It’s advantage RPL in 1: To analyze the available financial information of the sample company, various techniques of applied research and accounting tools like comparative ratios have been employed.

ril and rpl merger case study

Your Reason has been Reported to the admin. In the process of takeover, the acquiring company decides the maximum price that is to be offered to studg acquired and hence takes lesser time in completing stury transaction than in mergers, provided the top management of the acquired company is co-operative.

  AFIP ADUANA CURRICULUM VITAE

Mergers result in the combination of two or more companies into one, wherein merging entities lose their identities. However, on book value basis, the ratio works out to be adverse for the RPL shareholders.

RIL-RPL merger: Who benefits?

Generally, the company that survives is the buyer which retains its identity and the seller company is extinguished. On the basis of analytical study of sample case completed, the following conclusions have been drawn which are perfectly in the line of objectives predetermined: Stucy into consideration these important facts, the researchers have undertaken this study.

ril and rpl merger case study

During the post merger period the average of return on investment was declined to Usually, one company will buy another and, as part of the deal’s terms, simply allow the acquired firm to proclaim that the action is a merger of equals, even if it is technically an acquisition. There is a considerable difference between pre and post merger financial performance. Secondly, rli study is based purely on secondary data which are taken from the financial statements of the case through Internet only and therefore can’t be denied for any ambiguity in data used for the analysis.

RIL-RPL merger complete

Their results suggest that there are minor variations in terms of impact on operating performance following mergers, in different industries in India.

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