Master of Business Administration

(2023-25)
Corporate Finance
[D1PK202T] IA-2 Project

Topic: Unravelling the Financial Puzzle: Exploring Capital Structure

Strategies and Outcomes

SUBMITTED TO: Dr. Ruchi Atri

SUBMITTED BY: Group 7
Nusrat Praween: 23GSOB2010496
Surya Chaudhary: 23GSOB2010504
Shreya Kumari: 23GSOB2011410
Nudrat Parween: 23GSOB2010495
Md Badruddoja: 23GSOB2011396
INTRODUCTION
This project explores the capital structure strategies of five prominent
Nifty 500 companies, each having engaged in significant financial
maneuvers like leveraging for expansion, debt restructuring, or equity
issuance. By analyzing these case studies, we aim to understand how
different capital structure choices impact key financial outcomes and
provide practical recommendations for optimizing capital structure
decisions.

Key components of capital structure include equity (common stock,

preferred stock, retained earnings) and debt (bonds, loans, financial
obligations). The significance in corporate finance is multifaceted.
This analysis seeks to provide insights and practical guidance for
firms to balance competing priorities and make informed capital
structure decisions.
Data collection and Empirical Analysis
We have collected the data from various sources like:-

www.slideshare.in
www.wikipedia.in
www.financemanagement.in
www.business.in

Case study Selection and Analysis

Context: Expansion in digital and retail sectors.
Actions: Raised ₹53,125 crore through a rights issue; issued bonds
and took loans.
Impact: Diversified revenue streams, reducing dependence on oil and
gas.
Tata Motors: Debt Restructuring

Context: Financial stress at Jaguar Land Rover due to declining sales

and high debt.
Actions: Restructured debt with better terms, cut costs, improved
operations.
Impact: Stabilized finances, improved liquidity, focused on electric
vehicle development.
Bharti Airtel: Issuance of Equity and Hybrid Instruments
Context: Need for capital for network expansion and 5G technology.
Actions: Raised ₹21,000 crore via rights issue, issued convertible
bonds.
Impact: Enhanced network, improved service quality, prepared for 5G
rollout.
Vedanta Limited: Debt Restructuring and Issuance of Debt

Context: High debt from acquisitions and commodity price volatility.

Actions: Restructured debt, issued new debt to refinance high-cost
debt.
Impact: Improved financial stability, lowered interest costs, ensured
liquidity.
ICICI Bank: Issuance of New Equity

Context: Strengthen capital base for growth and risk management.

Actions: Raised ₹15,000 crore via Qualified Institutional Placement.
Impact: Bolstered Tier-1 capital ratio, enhanced lending capacity,
provided NPA buffer.

METHODLOGY
This study utilized a mixed-methods approach to explore capital
structures. A literature review of academic journals, financial
textbooks, and industry reports provided a theoretical foundation.
Data was collected from financial statements, market analyses,
historical performance records, surveys, and interviews with key
stakeholders. Financial modeling, ratio analysis, and risk assessment
techniques were employed for quantitative analysis, while thematic
analysis was used for qualitative data. Ethical considerations included
obtaining informed consent and maintaining participant
confidentiality.

CONCLUSION

The analysis conducted in this project provides valuable insights into

the customer satisfaction levels and usage patterns associated with
the new mobile app. Through a combination of quantitative survey
data and qualitative interview responses, we have gained a
comprehensive understanding of users' experiences and perceptions.
The findings indicate a high level of satisfaction among users with the
mobile app. The majority of respondents reported being either
satisfied or very satisfied with the app's performance, user interface
design, and overall user experience. This positive sentiment reflects
the app's ability to meet user expectations and deliver on its
intended functionality