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Securitization is a complex financial process that transforms illiquid assets into marketable securities. It's a key tool for financial institutions to manage risk, improve liquidity, and raise capital. Concept and Process of Securitization What is it? Securit...

Theories of Mergers and Acquisitions Differential Efficiency Theory: This theory posits that acquisitions happen when a more efficiently managed firm (A) acquires a less efficient firm (B). The idea is that A's superior management practices will improve B'...

The Merger and Acquisition Process Develop an Acquisition Strategy: The acquiring company defines its objectives for the M&A transaction. What are they hoping to achieve? (e.g., new products, market access, increased scale). This strategy guides the entire...

Fast Track Merger The Companies Act, 2013, introduced a "fast track" merger process under Section 233 and Rule 25 of the Companies (Arrangements, Amalgamations and Compromises) Rules, 2016. This streamlined approach offers significant advantages, particularly ...

Due Diligence in Mergers and Acquisitions Due diligence is the process of gathering and analyzing information before making a decision, particularly in investment and M&A contexts. It's a crucial risk assessment tool, involving a thorough examination of the t...

Analysis of Mergers and Acquisitions under the Companies Act, 2013 This essay analyzes the impact of the Companies Act, 2013 on mergers and acquisitions (M&A) in India, focusing on the changes introduced and comparing them with the previous Companies Act of 19...

SEBI Takeover Code 2011 The SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (Takeover Code) represent a significant evolution from the 1997 regulations, aiming to modernize and align India's M&A landscape with global best practices. Th...

Competition Act 2002: Provisions for Mergers and Acquisitions The Competition Act, 2002, represents a paradigm shift in India's approach to regulating market competition. Moving away from the restrictive focus of the Monopolies and Restrictive Trade Practices...

Takeover Defence Strategies/Tactics 1. Poison Pill A poison pill is a tactic used to make a takeover attempt less appealing by imposing significant costs or difficulties on the acquirer after the takeover. This is achieved through various mechanisms: Shareh...

Leasing Concepts Core Idea: Leasing is a contractual agreement granting the right to use an asset for a specified period in exchange for periodic payments (rentals). It's an alternative to outright purchase. Key Players: Lessor: The owner of the asset wh...

How a Lease Ends: A Explanation of Section 111 of the Transfer of Property Act Section 111 of the Transfer of Property Act outlines the different ways a lease agreement can be terminated, meaning the lessee (renter) must give the property back to the lessor (l...

Let's dive deeper into how a lessee (the renter) evaluates the lease vs. buy decision. We'll explore the methods, models, and practical considerations that help a lessee make the most informed choice. I. Core Concepts Revisited Lessee Focus: The lessee is co...

Lease Evaluation: The Lessor's Angle This topic concerns how a lessor (the entity owning the asset and renting it out) determines the profitability and feasibility of offering a lease. It's about pricing the lease correctly and managing risks to ensure a worth...

Hire purchase is a method of buying goods where you pay in installments, but you only own the item after you've made all the payments. Think of it as a long-term rental with the option to buy. What it is: It's a type of installment credit. You agree to "hir...

1. Hire Purchase (HP) Concept: Buying an asset over time with installments, where ownership transfers after all payments are made. The math involves calculating installments, interest, and rebates. Terms: Cash Price: The price if you bought the asset outri...

A. What is Housing Finance? Housing finance encompasses a comprehensive range of financial services and products aimed at facilitating the acquisition, construction, improvement, or renovation of residential properties. This can also be refered as Home Loans, ...

1. Public Issue: The Primary Method Definition: A Public Issue refers to a fundraising process where a company invites the general public to subscribe to its shares. It's the most common method of mobilizing capital for new ventures and expansion projects. ...

Let's explore these IPO components in greater detail, aiming for clarity and understanding. 1. Minimum Public Offer: Broadening Ownership Concept: When a company initiates an IPO, it's mandated to offer a specific percentage of its shares to the general pub...

What is Book Building? Think of Book Building like an auction for company shares! Instead of setting a fixed price upfront, the company asks investors to say how much they're willing to pay. This helps the company find the "right" price based on how much dema...

Imagine you're part of a club, and the club needs money to improve its facilities (like buying new equipment or fixing the clubhouse). The club decides to raise money by offering you, the existing members, a chance to buy more shares (ownership) in the club a...