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Journal ArticleDOI

NTPC-SAIL Power Company Limited (NSPCL): Born or Bound to Succeed?

19 Feb 2017-Asian Journal of Management Cases (SAGE PublicationsSage India: New Delhi, India)-Vol. 14, Iss: 1, pp 13-24
TL;DR: In this paper, the authors present an evaluation by the management of the National Thermal Power Corporation (NTPC) in the year 2001 for a joint venture with the Steel Authority of India Ltd (SAIL) in captive power plants.
Abstract: The case presents an evaluation by the management of the National Thermal Power Corporation (NTPC) in the year 2001 for a joint venture with the Steel Authority of India Ltd (SAIL) in captive power...
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Journal ArticleDOI
01 Jan 2001
TL;DR: In this article, the impact of mergers on corporate performance was studied and it was shown that the competitive process is not impeded with merger even when no strong anti-trust laws are present, and that mergers seem to lead to financial synergies and a one-time growth.
Abstract: This paper studies the impact of mergers on corporate performance. It compares the pre- and post-merger operating performance of the corporations involved in merger to identify their financial characteristics. Also, the effect on merger-induced monopoly profits is identified by looking at the persistence profile of the profits. Taking a sample of 36 cases of merger between 1992 and 1995, it is seen that there are no significant differences in the financial characteristics of the two firms involved in merger. The mergers seem to lead to financial synergies and a one-time growth. The analysis of the regression to norm shows that there is no increase in the postmerger profits. The competitive process is not impeded with merger even when no strong anti-trust laws are present.

136 citations


"NTPC-SAIL Power Company Limited (NS..." refers background in this paper

  • ...Since post-merger performances of many mergers in India were dismal (Pawaskar, 2001), a demerger of the sort envisaged by SAIL by offloading its non-core assets would have been expected to yield positive results....

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Journal ArticleDOI
01 Jul 2001
TL;DR: Pandey et al. as discussed by the authors found that substantial part of these gains are wiped out subsequently indicating that valuation gains associated with takeovers in large part reflect private value of control, expected to be high in the Indian context The fact that only one large open offer (out of 16 in all) was associated with an attempted unsuccessful hostile takeover bid suggests that given relatively large insiders' shareholdings, takeovers as governance mechanisms are not likely to be effective and private value-of control may be the driver in the market for tt l Ajay Pandey is a member of the
Abstract: The empirical studies in the context of developed countries have consistently pointed out substantial valuation gains for target firms, particularly in case of successful takeovers. This effect has been "found to be higher for tender offers compared to mergers and proxy contests, the other forms of plays in the market for corporate control. Subsequent to enactment of takeover enabling regulations in 1997 in India, takeovers and substantial acquisition of shares necessitate making open offer to the investors. Based on the empirical investigation of 14 large (above Rs 10 crore) takeover related open offers using event study methodology, we document significant announcement effect (» 10%) associated with the takeovers in Indian capital market. We also find that the target firm valuations increase in the runup to announcement. However, unlike developed countries, substantial part of these gains are wiped out subsequently indicating that valuation gains associated with takeovers in large part reflect private value of control, expected to be high in the Indian context The fact that only one large open offer (out of 16 in all) was associated with an attempted unsuccessful hostile takeover bid suggests that given relatively large insiders' shareholdings, takeovers as governance mechanisms are not likely to be effective and private value of control may be the driver in the market for tt l Ajay Pandey is a member of the faculty in the Finance Area of the Indian Institute of Management, Ahmedabad. e-mail: Apandey@nmahd.ernet.in

34 citations

Journal ArticleDOI
TL;DR: In this article, the authors explored and documented the evolution and trends of CBMAs for the period of 1990-2011 and analyzed the emerging patterns of cross-border engagement of Indian enterprises with a comparative domain to uncover the reasons and future directions.
Abstract: The global reforms in the last two and half decades have resulted in the adoption of different growth and expansion strategies by enterprises in the emerging economies. In this backdrop, Indian enterprises have been undertaking restructuring exercises primarily through M&As to make their presence felt even across the borders. This new trend of cross-border mergers and acquisitions (CBMAs) activity occurred in India with the advancement of liberalization and globalization process. This paper has been successful in exploring and documenting the evolution and trends of CBMAs for the period of 1990–2011 and analyzes the emerging patterns of cross-border engagement of Indian enterprises with a comparative domain to unearth the reasons and future directions. Direction from this paper indicates that firms from emerging countries like India go for international diversification to obtain intangible assets and resources which they do not possess.

9 citations