Valuation ratios of promotor / promotor group; open market operations; capital structure; asset securitization; capital asset based finance

1. Reduction of Capital
Cancel paid up capital due to
asset impairment /poor
operational control Reduce the liability on
unpaid share capital from
investors
Dispose the paid up capital
issued in excess of its warrants
to investors
Fixed price Offer
Open
Market
Operations
IPO
FPO
Tender offer
11/28/2015 1
• Takeovers
• Acquisitions
• & Mergers
for public issue
/primary markets
Promoter /
Promoter Group
• Lead Manager / Advisor
• Investor group
• Investment banker
• Financial institution /
Registrar
Net EPS1 P/E
• D/ E Ratio
• Working capital
• Asset turn over
• Capital adequacy
Earnings
& Financial
positionImprove Earnings
Interest rate
on capital
employed
Bank / Financier /
Finance house
Revolving credit /
Line of credit
(matched swap)
Loan repayment
[principal + Interest]
• Market Regulator
• Creditors
• Issuers & investors
• Financial instruments
• Finance house deposits
• Creditworthiness
FIINACIAL VALUATION , OPEN MARKET OPERATIONS & ASSET BASED LOAN SECURITIZATION
Buy back
Dividend payout
Cash dividend
Dividend per share
Capital structure, Customer base
Book building
Open Offer
Pledged /
Encumbered capital
Secondary market
1 Obtained after deducting from earnings
• Intangible assets & Tax
• Preferred share dividend
• Minority shareholder equity dividend
2. 2 - may be used for paying dividends;
3. 2’ – used for capital projects only.
Unlisted firms
Listed firms
• 2’Fresh issue - single bid
• Raises capital with prospectus
• 2Offer for sale
• Multiple bids
Floor price
Issue price
Undistributable
reserves, SPA,
CRR
Distributable reserves,
Revenue
SPA - Securities
Premium
CRR – Capital
Redemption