Premier Explosives: Finance for Organic Growth
商品編號：9B16N001
出版日期：2016/02/23
再版日期：2016/02/17
商品來源：Ivey
商品主題：Entrepreneurship; Finance; International Business
商品類型：Case (Field)
涵蓋議題：Private placement, risk mitigation, bank guarantee, performance evaluation, Make in India, defence, hazardous risk, exchange rate risk, HDX, NHN, obsolescence risk, market risk, profit versus volume, emerging markets, industrial products
難易度：5 - MBA/Postgraduate
內容長度：13 頁
地域：India
產業：Manufacturing;
事件年度：2014
In February 2015, Premier Explosives Limited (PEL) was preparing for a sudden expansion. The Indian company was the sixth-largest manufacturer of explosives in the country and also made defence products such as solid propellants and pyrogen igniters. PEL had many prominent customers in the mining industry and defence business, and exported bulk explosives to a number of countries. PEL signed a joint venture agreement with the well-regarded Kalyani Group, to manufacture additional defence products. To fund the expansion, PEL approached the Commercial Bank of India for a preferential allotment of equity shares to mobilize ?510 million and an enhancement of working capital limits from ?460 million to ?740 million. The Central Bank of India's president of the investment banking group perused the proposal, but was presented with a dilemma due to the recent slowdown in the mining and infrastructure sectors -- the main industries that used PEL's products. Given the decline and the associated risks, should the banker reject the funding proposal for PEL to expand?
教學手冊：8B16N001;
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