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    Surya Tutoring

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    RaviShankarSharma
    Surya considered the advantages of two investment funds. Fund 1 offered higher promoter equity at 78.5% plus 9.5%, less board interference with only 1 investor director, and less stock dilution for Surya. Fund 1 also promised not to sell shares to Surya's competitors and offered a higher stock price of Rs. 3,000 per share compared to Rs. 2,151 from Fund 2. Fund 1 further provided low interference in Surya's future business plans and had experience investing in international education companies. Surya preferred Fund 1 as it believed more control should rest with promoters and valued relationships in business matters, seeing an opportunity for a strategic alliance.

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    Surya Tutoring

    Uploaded by

    RaviShankarSharma
    165 views5 pages
    Surya considered the advantages of two investment funds. Fund 1 offered higher promoter equity at 78.5% plus 9.5%, less board interference with only 1 investor director, and less stock dilution for Surya. Fund 1 also promised not to sell shares to Surya's competitors and offered a higher stock price of Rs. 3,000 per share compared to Rs. 2,151 from Fund 2. Fund 1 further provided low interference in Surya's future business plans and had experience investing in international education companies. Surya preferred Fund 1 as it believed more control should rest with promoters and valued relationships in business matters, seeing an opportunity for a strategic alliance.

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    Which equity fund to choose

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    Surya considered the advantages of two investment funds. Fund 1 offered higher promoter equity at 78.5% plus 9.5%, less board interference with only 1 investor director, and less stock dilution for Surya. Fund 1 also promised not to sell shares to Surya's competitors and offered a higher stock price of Rs. 3,000 per share compared to Rs. 2,151 from Fund 2. Fund 1 further provided low interference in Surya's future business plans and had experience investing in international education companies. Surya preferred Fund 1 as it believed more control should rest with promoters and valued relationships in business matters, seeing an opportunity for a strategic alliance.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    165 views5 pages

    Surya Tutoring

    Uploaded by

    RaviShankarSharma
    Surya considered the advantages of two investment funds. Fund 1 offered higher promoter equity at 78.5% plus 9.5%, less board interference with only 1 investor director, and less stock dilution for Surya. Fund 1 also promised not to sell shares to Surya's competitors and offered a higher stock price of Rs. 3,000 per share compared to Rs. 2,151 from Fund 2. Fund 1 further provided low interference in Surya's future business plans and had experience investing in international education companies. Surya preferred Fund 1 as it believed more control should rest with promoters and valued relationships in business matters, seeing an opportunity for a strategic alliance.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 5

    - By Group 2

    What were the advantages of each fund from


    Suryas point of view ?

    1. Higher Promoter Equity (78.5% + 9.5% )

    2. Less interference on Board (1 Investor
    Director)

    3. Less dilution of Suryas stock.

    4. Promise of not selling its share to Suryas
    Competitors.
    1. Higher Stock price offered.
    (3000/share vs. 2151/share)

    2. Low interference in future business plans of
    Surya.

    3. Good portfolio of international companies in
    education sector.

    1. More control should rests with Promoters.

    2. People value relationship esp. in business
    matters.

    3. Strategic Alliance.

    4. Negotiate with ZenCap using Blackgems
    offer.

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