個案總覽

Just Dial was the largest phone and Internet based local search provider in India. The company started providing services in 1996, but the revenues of the company shot up in 2004 with the penetration of telecoms in the Indian market. Several private equity investors funded the growth of Just Dial. Almost 90% of Just Dial revenues came from Tier I cities in India. In order to mark its presence and expand its network to Tier II cities, Just Dial required funds. With funds already raised from private equity investors, Just Dial planned to take the IPO route for further fundraising. In March 2013, Just Dial's IPO was approved by SEBI after five previous unsuccessful attempts - twice on NASDAQ, two aborted filings in India in the last two years and one on a smaller exchange. The case is positioned in May 2013, just a few days before the IPO's launch, when there was a great deal of negative news in the market regarding Just Dial's overvaluation. The business model was completely new and there were no industry comparables in order to do a fair valuation. Analysts in the market repeatedly warned investors, suggesting they avoid the IPO because it was overvalued. Furthermore, they said that it was only meant to provide an exit option for the PE investors. Consequently, investors were sceptical of Just Dial's valuation. With this negative perception prevailing in the market, should Just Dial consider delaying the IPO or lowering the price range (thus reconsidering its valuation)?

Student spreadsheet for product 9B14N021.

In 2012, Manish Enterprises, a leading coal supplier firm located in Ludhiana, India, was facing a decline in growth. A year later, a business graduate was appointed as the chief executive officer of the company. He managed to reduce the cash cycle from six months to three months by running the operations of the firm efficiently. Sales increased by 127 per cent, and the firm began financing its growth by taking advances from customers. The firm was thus able to reduce its investment in current assets. However, despite adopting best practices, the profitability of the business was declining. The challenges then faced by Manish Enterprises were to manage growth and liquidity while retaining profitability.

In 2012, Manish Enterprises, a leading coal supplier firm located in Ludhiana, India, was facing a decline in growth. A year later, a business graduate was appointed as the chief executive officer of the company. He managed to reduce the cash cycle from six months to three months by running the operations of the firm efficiently. Sales increased by 127 per cent, and the firm began financing its growth by taking advances from customers. The firm was thus able to reduce its investment in current assets. However, despite adopting best practices, the profitability of the business was declining. The challenges then faced by Manish Enterprises were to manage growth and liquidity while retaining profitability.

Student spreadsheet for W14389.