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Vedanta Limited (VEDL), an Indian conglomerate, operated in natural resources business segments, including aluminum, power, steel, oil and gas, and base metals segments such as copper, zinc, lead, silver. In September 2023, the company's market value was approximately half of its intrinsic value, as its individual business segments were estimated to be worth significantly more operating independently.<br><br>The chair of VEDL needed to take the necessary steps to enhance shareholder value by unlocking conglomerate discounts. The combined segments were perceived to generate negative synergies for the conglomerate, as indicated by the trading multiples of comparable companies. In looking for viable ways to eliminate the discount, he had to choose among the following options: (1) a share repurchase, (2) divestiture, (3) a spinoff of one or more segments, or (4) a spinoff of all segments.

The case highlights deliberations led by Brett Barakett, CEO and chief investment officer of Tremblant Capital, just months prior to launching an actively managed ETF, Tremblant Global (TOGA). However, his team continued to have reservations around the launch. On the one hand, TOGA would provide investors compelled by Tremblant's investment philosophy a more tax-efficient, liquid, and transparent product, at a lower cost than its long-only fund. On the other hand, there were concerns that TOGA might cannibalize Tremblant's higher-fee hedge fund business, increase its disclosure requirements, and expose the firm to greater counterparty risk.

Spreadsheet supplement for case W36955

Instacart is an online grocery delivery platform that is seeking to go public through an initial public offering (IPO). Instacart has hired an investment bank to be its lead bookrunner, and the bank is responsible for coming up with an IPO price range. Maya Martinez, an investment banking analyst at the firm, has been tasked with building financial models to come up with an appropriate share range for the firm's managing directors to present at the IPO roadshow.

Spreadsheet supplement for case 124005.

This note introduces interest-rate swaps, financial contracts wherein two parties agree to exchange interest-rate cash flows, typically in the form of an exchange between fixed-rate payments and floating-rate payments. Interest-rate swaps are valuable risk-management tools for entities seeking to alter the composition of their interest-rate exposure, as swaps enable them to hedge against fluctuations in interest rates. This note covers how these swaps are priced, the understanding of which is essential for effective risk management and corporate financing decision-making. At the Darden School of Business, this technical note is taught in the first-year "Valuation in Financial Markets" class; it would also be suitable in a module covering interest rates in a derivatives elective course.

Spreadsheet supplement for case W36975

On March 8, 2023, Silicon Valley Bank (SVB) disclosed its plans to raise USD 1.75 billion to seal a hole in its balance sheet from an unsuccessful sale of a fixed-income portfolio that had reportedly resulted in substantial losses. This unexpected move triggered a massive withdrawal of deposits, especially by technology and venture capital firms. The liquidity problem was expected to leave losses amounting to USD 20 billion. A fund manager intended to examine the level of financial distress in SVB and identify the possibility of recovery. His clients believed that SVB could still be a good buy at the current valuation. The fund manager examined various risks and applied the probability of financial distress model for analysis.

Presentation to accompany product W36975.

Spreadsheet to accompany product W36975.

On March 8, 2023, Silicon Valley Bank (SVB) disclosed its plans to raise USD 1.75 billion to seal a hole in its balance sheet from an unsuccessful sale of a fixed-income portfolio that had reportedly resulted in substantial losses. This unexpected move triggered a massive withdrawal of deposits, especially by technology and venture capital firms. The liquidity problem was expected to leave losses amounting to USD 20 billion. A fund manager intended to examine the level of financial distress in SVB and identify the possibility of recovery. His clients believed that SVB could still be a good buy at the current valuation. The fund manager examined various risks and applied the probability of financial distress model for analysis.

Why Canadian companies are increasingly utilizing litigation financing to transform legal disputes into assets.

On April 23, 2020, Franklin Templeton India Mutual Fund (FT) shocked investors by winding up six of its debt mutual fund schemes, amounting to assets under management of INR 267.79 billion, with over 300000 investors. The decision was based on the liquidity squeeze in the financial markets as COVID-19 forced the world, including India, into lockdown. FT was facing redemption pressures it could no longer meet without making distress sales of its underlying investments. The management deemed a distress sale to be far more detrimental to investor interests than freezing their investments in the fund. The question arises if there were other compelling reasons that brought FT to this unfortunate decision.

On April 23, 2020, Franklin Templeton India Mutual Fund (FT) shocked investors by winding up six of its debt mutual fund schemes, amounting to assets under management of INR 267.79 billion, with over 300000 investors. The decision was based on the liquidity squeeze in the financial markets as COVID-19 forced the world, including India, into lockdown. FT was facing redemption pressures it could no longer meet without making distress sales of its underlying investments. The management deemed a distress sale to be far more detrimental to investor interests than freezing their investments in the fund. The question arises if there were other compelling reasons that brought FT to this unfortunate decision.

In this note, we cover how bond prices change as yields change. Students are shown that the price of a bond is a function of its promised payments and the prevailing required rate of return by investors: the bond's yield. Since the promised payments are generally fixed, changes in the price of a bond relate to changes in its yield. The note introduces the most common measures of interest-rate risk (the sensitivity of bond prices to changes in yield), the Macauley duration and modified duration, and it guides students through calculating their value for two bonds issued by Amazon.com. At the Darden School of Business, this technical note is taught in the first-year "Valuation in Financial Markets" class; it would also be suitable in a module covering bond pricing and interest rates within the first-year core finance course of an MBA program, or to introduce the pricing of bonds in an investment course.

This case accompanies "GameStop: Social Media Finds a Cheat Code (A)," no. 124-005. It provides an update on pertinent events from 2021 to 2023.

Spreadsheet to accompany product W37098.

In October 2022, The Kroger Company and Albertsons Companies Inc. announced their intention to merge their grocery businesses in the United States. By the fall of 2023, the proposed merger was facing lawsuits and protests from various stakeholders including politicians, employee labour unions, and consumers. The merger agreement required the deal to be completed by mid-January 2024, although this date could be extended if both sides agreed. This seemed an appropriate time for an analyst to take a closer look at the merger’s potential benefits, including evaluating potential synergies to be gained from the proposed merger. However, the analysis would have to consider the industry’s regulations. An analysis of the proposed merger would have to carefully consider both the qualitative and quantitative benefits that could arise from The Kroger Company and Albertsons Companies Inc. joining forces in the highly competitive US grocery market.