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Surya Tutoring

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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RaviShankarSharma
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189 views

Surya Tutoring

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.

Uploaded by

RaviShankarSharma
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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- 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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