Report Submitted by: Group 9

Vibhor Arora – 17pgp264

Mayank Kumar – 17pgp073
Sreyans M Rai – 17pgp258
Arnab Ghosh – 17pgp243
Chayanika Singh- 17pgp041
G.P.S.Vamsi Krishna- 17pgp057
 Analysing a Firm’s Current Financing Choices
1. Where does the Firm get its current Financing?
o APL Apollo is a public traded company and is installing 1 more plant in
Raipur Chhattisgarh to increase the production capacity, for that Company
issued Common shares worth of 0.16 crores
o Issued Non-convertible Debentures of 75 crores to decrease the bank loan
from 101 crores to 29 crores
o Short term borrowings increased by 90 crores
o Long term provisions increased by 2 crores
From 2016 to 2017, share holder equity is increased and total debt is
decreased so the Project undertaken might be financed with

Term loan which is ending in 2019 is issued at 10.25%

Detailed Description of Current Financing:

Non-Convertible Debentures issued at 8.20% Coupon rate, Face value of 10
lakhs each.
Non-Convertible Debentures are secured by both movable and immovable
assets of the company
 2. Would these Financing choices be classified as debt, equity or hybrid securities?
Common shares issued would come under Equity financing and Non-Convertible Debentures
issued would come under Debt Financing.

Capital Structure Choices

1. How large in qualitative or quantitative terms are the advantages to the company from
using debt?

Marginal tax rate: 37%

Tax rate : 27%

PEER PERFORMANCE
Shareholding Pattern

Beta – 1.24
Market Capitalization – Rs 44,106.14 Mil
Shares outstanding – 23.59 mil
Divident – 12
Yield – 0.64%
P/E Industry – 28.58
P/E Sector – 16.64
ROI Industry – 2.56
ROI Sector – 10.66