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Business Strategy

Business Strategy

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Published by: anandgupta512 on Dec 28, 2010
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06/22/2013

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Spin-Off –

Spin-Off – A spin off is the creation of a new entity; in which the
A spin off is the creation of a new entity; in which the
equity is allotted amongst the existing shareholders on a pro-rata

equity is allotted amongst the existing shareholders on a pro-rata
basis

basis (Eg. Reliance Ent).
(Eg. Reliance Ent).

–Split-Off –

Split-Off – In a split-off, the existing shareholders receive equity
In a split-off, the existing shareholders receive equity
in the subsidiary in exchange for the stocks of the parent

in the subsidiary in exchange for the stocks of the parent
company.

company.
–Split-Up –

Split-Up – In a split-up, the entire parent company loses its
In a split-up, the entire parent company loses its
identity after being split into a number of subsidiaries. Most of

identity after being split into a number of subsidiaries. Most of
these practices are not in consonance with Indian laws.

these practices are not in consonance with Indian laws.

Equity Carve –

Equity Carve – It involves selling a minority stake to a third party
It involves selling a minority stake to a third party

while retaining control

while retaining control (Eg. Tata Industries selling 20% stake to
(Eg. Tata Industries selling 20% stake to

Jardine Matheson).

Jardine Matheson).

204

204

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