Product details

Product details
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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

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