Company 1- Aarti Industries Ltd.

1. Please refer to the FMI text book (PC Chapter 17) page 262 and compute its ‘book value’ for the last two
years. Display the computations and summarize your observations (within 50 words).

Book Value Per Share = (Paid-Up Equity Capital + Reserves and Surplus)/Number of Outstanding
Equity Shares

Reserves and
Paid-Up Capital Outstanding Book Value
FY Surplus (in
(in INR cr.) shares Per Share
INR cr.)
2019-20 87.12 2814.70 174,234,474 166.58 
2018-19 43.33 2517.08 86,668,647  295.32

The Book Value per share has decreased by almost 43.6% YoY. This is due to an increase in the
number of outstanding shares even though there is a rise in paid-up equity capital and reserves and surplus
of the company.

2. Please refer to the FMI text book (PC Chapter 17) page 265 ‘preference capital’. Does the company
selected by you have any of them? Give quick details for last two years. Summarize your observations
(within 50 words).

There are no preference capital shares in the company.

3. Please refer to the FMI text book (PC Chapter 17) page 266 ‘term loans’. Does the company selected by
you have any of them? Give quick details for last two years. Summarize your observations (within 50
words).

Yes, Aarti Industries has issued term loans.

Outstanding Outstanding
Particulars amount in FY20 amount in FY19 Type
(in cr. INR) (in cr. INR)
ECB/Term Loans
from
575.49 725.2 secured
Banks/Financial
Institutions
Vehicle loans from
Banks/Financial 2.09 2.55 secured
Institutions

The company has an outstanding term loan of INR 575.49 cr. in FY20 as opposed to INR 725.2 cr. in
FY19 thus having paid approx. 20.6% of the loan amount YoY. The reduction in term loan is due to
good performance of the company. The term loans are secured by way of Pari Passu Hypothecation
of the Movable Plant & Machinery, Machinery Spares, etc., both present and future. Vehicle loans
from Banks/Financial Institutions are secured by way of hypothecation of respective vehicles.

4. Please refer to the FMI text book (PC Chapter 17) page 269 ‘debentures’. Does the company selected by
you have any of them? Give quick details for last two years. Summarize your observations (within 50
words).

Yes, Aarti Industries has issued Debentures

 Outstanding Outstanding
Debentures amount in FY20 amount in FY19 Type
(in INR cr.) (in INR cr.)
Non-Convertible
NIL 80 Secured
Debentures

The company has issued STRPPS Non-Convertible Debentures of INR 200 cr. with a coupon rate of
11.75% p.a. secured by way of First Pari Passu Hypothecation of the Moveable Plant & Machinery,
Machinery Spares, etc., both present and future. NCDs were issued in the year 2014-15 and are
redeemable in five equal installments starting from the end of the 3rd year from the date of allotment.

5. Are there any money market instruments in your selected company? If yes, please provide summarized
details of the same (within 50 words).

There are no money market instruments in the company.

6. Are there any capital market instruments in your selected company? If yes, please provide summarized
details of the same (within 50 words).

There are no capital market instruments in the listed company

7. Please refer to the FMI text book (PC Chapter 18) page 276 ‘initial public offer’. Identify and mention
brief details of how the chosen company raised money (say, nature of the capital market offering, date of
offering, i-bankers involved and such)? Summarize your observations (within 50 words).

Nazara Technologies Ltd. IPO

The company raised Rs. 583 cr. from an Initial Public Offer by selling 5.3 million shares of face
value Rs. 4 each in a price band of Rs. 1,100-1,101 per share in the month of March, 2021. The
market lot size was 13 shares and the IPO was subscribed 176 times. It was a Book Built issue IPO.
Anchor investors involved were 16 foreign investors like GIC, Goldman Sachs, Fidelity, etc. and 8
mutual funds which included SBI, HDFC MF, Kotak MF, etc. The share allotment date was 24th
March, 2021 and company got listed on 30th March, 2021.

8. Please refer to the FMI text book (PC Chapter 18) page 283 ‘follow on public offer’. Provide one
example of a company that has recently gone through the process of issuing FPO. Give quick details.
Summarize your observations (within 50 words).

Yes Bank FPO

Yes Bank had issued an FPO from July 15th – 17th, 2020 with an issue size of Rs. 15,000 cr. The
issue type was Book Built Issue FPO at a price band of Rs. 12 to Rs. 13 per equity share with a
market lot of 1000 shares. SBI Capital Markets committed an underwriting amount of Rs. 3,000 cr.
in the issue. It managed to raise Rs. 14,272 cr. as it was subscribed only 95%. The proceeds collected
were to be utilized for growth and expansion, including enhancing its solvency and capital adequacy
ratio.

9. Please refer to the FMI text book (PC Chapter 18) page 284 ‘rights issue’. Provide one example of a
company that has recently gone through the process of rights issue. Give quick details. Summarize your
observations (within 50 words).

L&T Finance Rights Issue

 L&T Finance opened its rights issue of Rs. 2,998.61 cr. on 1st February and closed on 15th February.
The price was fixed at Rs. 65 per fully paid-up share including a premium of Rs. 55 per share of face
value Rs. 10. The issue was oversubscribed by 15% and the rights entitlement ratio was 17:74 (17
equity shares for every 74 shares fully paid-up equity share held by the eligible shareholders). The
funds raised by this rights issue aimed at repayment of commercial papers and redemption of
preference shares issued by company and ither general corporate affairs.

10. Please refer to the FMI text book (PC Chapter 18) page 288 ‘private placement’. Provide one example of
a company that has recently gone through the process of private placement. Give quick details.
Summarize your observations (within 50 words).

Utkarsh Small Finance Bank

The company raised around Rs. 240.47 cr. through a private placement of equity shares in February,
2021. The number of shares allotted were 89,061,647 at a price of Rs. 27 per share. There were 6
investors who took part in this issue - Olympus ACF Pte Ltd, ResponsAbility Participations
Mauritius; Aavishkaar Bharat Fund, Growth Catalyst Partners LLC, Triodos Sicav II - Triodos
Microfinance Fund, Triodos Funds BV. Kotak Mahindra Capital Company was the financial advisor
to the bank during this process.

11. Please refer to the FMI text book (PC Chapter 18) page 290 ‘obtaining a term loan’. Provide one example
of a company that has recently raised money by a term loan. Give quick details. Summarize your
observations (within 50 words).

Wipro Ltd.

Wipro has secured a 1 billion USD funding through a one-year overseas loan to acquire British IT
consultancy Capco. The loan is likely to be issued by a syndicate of banks such as Bank of America,
Citi, HSBC, MUFG and Standard Chartered Bank. The short-term loan will be priced after adding 60
basis points over and above one-month dollar-denominated LIBOR which is yielding 0.11%.
12. Please refer to the FMI text book (PC Chapter 18) page 294 ‘investment banking’. Provide one example
of an investment banker in India. Give quick details. Summarize your observations (within 50 words).

Axis Capital Limited

It is a subsidiary of Axis Bank, previously known as Enam Securities Private Limited. It is one of India’s
leading financial experts that provides customized solutions in Investment Banking and Institutional
Equities. It offers services in the areas of Equity Capital Markets, M&A, Private Equity, Structured
Finance and Institutional Equities. The authorized capital of the company stands at Rs 17,500 lakhs and
has 42.0% paid-up capital which is Rs 7,350 lakhs.