Amalgamation (2007)

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B A LB H A R A T I C O LLE G E

.Submitted to Prof AARTI CHIKAL

. . . . .T Y B M S

,By

SHASHANK SARFARE 06

VIDHI VORA 07

DHAVAL SALLA 09


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Purpose of Amalgamation/Merger.Purpose of Amalgamation/Merger.

(1)Procurement of supplies:

(2)Revamping production facilities:

(3) Market expansion and strategy:

(4) Financial strength:

(5) General gains:


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Types of Amalgamation/Merger.Types of Amalgamation/Merger.

(A) Vertical combination:

(B) Horizontal combination :

(C) Circular combination:

(D) Conglomerate combination:


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ProcedureProcedure for Amalgamation/Merger.

for Amalgamation/Merger.

:u b lic a n n o u n c e m e n tTo m a ke a p u b lic a n n o u n cem e n t a n a cq u ire r

:sh a ll fo llo w th e fo llo w in g p ro ce d u re

.p p o in tm e n t o f m e rc h a n t b a n k e r

.se of media for announcement

.im ings of annou nceme nt


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FForward promptly notice and proceedings of meeting to SEsorward promptly notice and proceedings of meeting to SEs

RReport the result of the meeting to Courteport the result of the meeting to CourtMMove Court for approval of the scheme by filing petition in 7 days in Form 40ove Court for approval of the scheme by filing petition in 7 days in Form 40

AAdvertise the date of hearing fixed by the courtdvertise the date of hearing fixed by the court

OOn receipt of Order from High Court, file it with RoC.n receipt of Order from High Court, file it with RoC.

PProceed on effecting the scheme amalgamation / merger as approved by High Courtroceed on effecting the scheme amalgamation / merger as approved by High Court


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Major Laws InvolvedMajor Laws Involved

SSEBI (substantial Acquisition of shares &Takeovers) RegulationsEBI (substantial Acquisition of shares &Takeovers) Regulations

1997.1997.

TThe Securities and Exchange Board of India Act,1992 .he Securities and Exchange Board of India Act,1992 .

SSecurity Contract Regulation Act ,1956 .ecurity Contract Regulation Act ,1956 .

TThe Depositories Act,1956.he Depositories Act,1956.

SSEBI Disclosure and Investor Protection Guidelines 2000.EBI Disclosure and Investor Protection Guidelines 2000.

SSecurities and Exchange Board of India (Prohibition of Insiderecurities and Exchange Board of India (Prohibition of Insider

Trading Regulation ),1992.Trading Regulation ),1992.

SSecurities and Exchange Board of India (Merchant Bankers)ecurities and Exchange Board of India (Merchant Bankers)

Rules/Regulation 1992.Rules/Regulation 1992.

SSEBI (Delisting of Securities )Guidelines,2003.EBI (Delisting of Securities )Guidelines,2003.

FForeign Exchange Management Act,1999.oreign Exchange Management Act,1999.CCompanies Act,1956.ompanies Act,1956.


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&&


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Income Statement (In Crore) ec 0 9 a r 1 0 u n 10 e p 1 0 ec 1 0Sales Turnover , .1 149 90 , .1 163 87 , .1 093 57 , .1 491 77 , .1 181 23

Operating Profit .261 97 .277 53 .191 45 .271 89 .245 56

Net Profit .165 79 .231 83 .128 32 .183 95 .202 02

Earnings Per Share .13 56 .18 95 .10 34 .14 63 .16 05

Reserves , .2 550 02

Face Value 10 10 10 10 10

Net Profit Margin . %14 42 . %19 92 . %11 73 . %12 33 . %17 10

Average Margin . %5 1 0

Tech Mahindra Quarterly Income StatementNow that we have net margin of Satyam at 15.10%, we will take the revenue of 1193.50croreand calculate the net profit. From this, we can calculate the Earnings Per Share (EPS) as we havethe number of shares.Lets look at some numbers in 4 quarters.


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Mahindra Satyam Quarterly IncomeMahindra Satyam Quarterly IncomeStatementStatement

Income Statement (in Crore) ep 0 8 un 10 ep 10 ec 10Sales Turnover , .2 700 52 , .1 154 10 , .1 150 80 , .1 193 50

Operating Profit .649 27 .108 9 .71 2 .82 1

Net Profit .597 43 104 .28 5 .65 8

Earnings Per Share .8 87 .0 88 .0 24 .0 56

Reserves , .8 392 23

Face Value 2 2 2 2

Net Profit Margin . %22 12 . %9 01 . %2 48 . %5 51


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WhyMergersFails?


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List of Amalgamated CompaniesList of Amalgamated Companies(Success & Failure).(Success & Failure).

Glaxo India Limited and SmithKline Beecham Pharmaceuticals (India)(Came in to existence on December 2000) [Success].

Deutsche and Dresdner Bank (Came in to existence on 7th

March, 2000)[Failure].

London-based Standard Chartered Bank and ANZ Grind lays Bank(Came in to existence on August 2000 ) [Success].

TATA & UK-based TETLEY (Controversial Issue over Success AndFailure).(Came in to existence on Feb 2000).But Tata still calls it to be a success whereas in reality it is a Failure.


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BibliographyBibliography

http://www.managementparadise.com/forums/business-environment-b-e/951-mergers-acquisitions.html

"Mergers and acquisitions explained". http://www.m-and-a-explained.com/.Retrieved 2009-06-30.

Mahindra & Satyam Discuss Transithttp://www.mahindrasatyam.com/media/pr7Apr09.asp
http://www.m-and-a-explained.com/http://www.mahindrasatyam.com/media/pr7Apr09.asphttp://www.mahindrasatyam.com/media/pr7Apr09.asphttp://www.m-and-a-explained.com/


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Amalgamation (2007)

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