In India

Presented By:Kanchan and Vipin

 Corporate

finance is the field of finance dealing with financial decisions that business enterprises makes and it deals with the tools and analysis used to make these decisions. The primary goal of corporate finance is to maximize corporate value while managing the firm's financial risks .

 Arranging

funds for business. Raising funds of business.

 Merger

and acquisition Joint ventures Brought out deal Venture Capital Invoice Discounting and Invoice Factoring Hire Purchase and Leasing

In India

MERGER
A merger is when you integrate the business with another and share control of the combined businesses with other owner. A merger involves the mutual decision of two companies to combine and become one entity.
Merger: 2 firms combine all Assets and Liabilities Acquirer Target Usually take a new name

Types of Mergers
Horizontal Merger Combination of two or more firms operating in the same stage of production.

Example: The merger of ACC with Damodar Cements.

Vertical Merger Combination of two firms that operate in different stages of production. Example: Cement manufacturing company acquires a company engaged in civil construction.

Cont.
Conglomerate Merger

Merger of firms in unrelated lines of business that are neither competitors nor potential or actual customers or suppliers of each other. Example: General Electric buying NBC television.
Product Extension Merger It is executed among companies which sell different products of a related category. Market Extension Merger It occurs between two companies that sell identical products in different markets.

ACQUISITION
Acquisition may be defined as an act of acquiring effective control over assets or management of a company by another company without any combination of businesses or companies.

Types of Acquisition
Friendly Acquisition The acquisition of a target company that is willing to be taken over.

Hostile Acquisition
A takeover in which the target has no desire to be acquired and actively rebuffs the acquirer and refuses to provide any confidential information.

 If

the acquirer acquires more than 75% shares of the target company, then, either he shall off load extra shareholding back into the market, or otherwise he shall pick up the remaining shares from market as per SEBI(delisting of securities) Guidelines, 2003 by the way of reverse book building.

Some M&A in India

The proposed merger between Bharti Airtel and South Africa's MTN would be India's biggest-ever M&A deal. The potential value of the Bharti Airtel-MTN deal would amount to $23 billion. As per the exploring agreement, MTN and its shareholders would acquire around 36 per cent economic interest in Bharti Airtel, while, the Sunil Mittal - promoted Bharti Airtel would acquire 49 per cent stake in South African telecom giant MTN.

Tata Steel-Corus: $12.2 billion.

On January 30, 2007, Tata Steel purchased a 100% stake in the Corus Group at 608 pence per share in an all cash deal,

cumulatively valued at $12.2 billion.The deal is the largest Indian takeover of a foreign company till date and made Tata Steel the world's fifth-largest steel group

Vodafone-Hutchison Essar: $11.1 billion.

On February 11, 2007, Vodafone agreed to buy out the controlling interest of 67% held by Li Ka Shing Holdings in Hutch-Essar for $11.1 billion.
This is the second-largest M&A deal ever involving an Indian company. Vodafone Essar is owned by Vodafone 52%, Essar Group 33% and other Indian nationals 15%.

HDFC Bank-Centurion Bank of Punjab: $2.4 billion.

HDFC Bank approved the acquisition of Centurion Bank of Punjab for Rs 9,510 crore ($2.4 billion) in one of the largest mergers in the financial sector in India in February, 2008. Post-acquisition, HDFC Bank became the second-largest private sector bank in India.

MAJOR MERGERS AND ACQUISITIONS IN INDIA

Recently the Indian companies have undertaken some important acquisitions. Some of those are as follows:
#Hindalco acquired Canada based Novelis. The deal involved transaction of $5,982 million. #Tata Steel acquired Corus Group plc. The acquisition deal amounted to $12,000 million. #Dr. Reddy's Labs acquired Betapharm through a deal worth of $597 million. # Ranbaxy Labs acquired Terapia SA. The deal amounted to $324 million. # Suzlon Energy acquired Hansen Group through a deal of $565 million. # The acquisition of Daewoo Electronics Corp. by Videocon involved transaction of $729 million. # HPCL acquired Kenya Petroleum Refinery Ltd.. The deal amounted to $500 million. # VSNL acquired Teleglobe through a deal of $239 million.

in India

joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity . They exercise control over the enterprise and consequently share revenues, expenses and assets.

 Sony-Ericsson

is a joint venture by the Japanese consumer electronics company Sony Corporation and the Swedish telecommunications company Ericsson to make mobile phones. The stated reason for this venture is to combine Sony's consumer electronics expertise with Ericsson's technological leadership in the communications sector. Both companies have stopped making their own mobile phones.

 Virgin

Mobile India Limited is a cellular telephone service provider company which is a joint venture between Tata Tele service and Richard Branson's Service Group. Currently, the company uses Tata's CDMA network to offer its services under the brand name Virgin Mobile, and it has also started GSM services in some states.