Subject category:
Finance, Accounting and Control
Published by:
IBS Center for Management Research
Length: 12 pages
Data source: Published sources
Share a link:
https://casecent.re/p/165221
Write a review
|
No reviews for this item
This product has not been used yet
Abstract
The case study, Vardhman Textiles Ltd's Buyback of Shares, discusses the share buyback offer issued by VTL, one of the leading textile companies in India. The management of VTL believed that the company was doing well on the basis of various financial parameters, but its share price did not reflect the correct value of the company. Also, VTL had sold its stake in one of its joint ventures and got cash of INR4.13 billion. The growing cash balance and reserves and low debt to equity ratio motivated the management of VTL to go in for a share buyback in place of a regular dividend. The case provides information to understand the complete process of share buyback and to analyze whether the decision taken by VTL's management was the right one or not.
Teaching and learning
This item is suitable for undergraduate, postgraduate and executive education courses.Time period
The events covered by this case took place in 2016-2017.Geographical setting
Region:
Asia
Country:
India
Featured company
Vardhman Textiles Limited
Employees:
10000+
Turnover:
INR 66.37 billion
Type:
Public company
Industry:
Textiles & apparel
About
Abstract
The case study, Vardhman Textiles Ltd's Buyback of Shares, discusses the share buyback offer issued by VTL, one of the leading textile companies in India. The management of VTL believed that the company was doing well on the basis of various financial parameters, but its share price did not reflect the correct value of the company. Also, VTL had sold its stake in one of its joint ventures and got cash of INR4.13 billion. The growing cash balance and reserves and low debt to equity ratio motivated the management of VTL to go in for a share buyback in place of a regular dividend. The case provides information to understand the complete process of share buyback and to analyze whether the decision taken by VTL's management was the right one or not.
Teaching and learning
This item is suitable for undergraduate, postgraduate and executive education courses.Settings
Time period
The events covered by this case took place in 2016-2017.Geographical setting
Region:
Asia
Country:
India
Featured company
Vardhman Textiles Limited
Employees:
10000+
Turnover:
INR 66.37 billion
Type:
Public company
Industry:
Textiles & apparel