Decoding the source of value for VNL, an R&D-focused functional beverage company / Sanjay Mishra.

Format:

Book

Author/Creator:

Mishra, Sanjay Kumar, active 2024, author.

Series:

SAGE Business cases.

SAGE Business cases

Language:

English

Subjects (All):

Portfolio management--Case studies.

Portfolio management.

Investment analysis--Case studies.

Investment analysis.

Valuation--Case studies.

Valuation.

Physical Description:

1 online resource.

Place of Publication:

London : SAGE Publications: SAGE Business Cases Originals, 2024.

Summary:

Sanjay Kumar Sinha, a member of the informal group AN Angel Investors, has taken a lead to conduct the valuation of Valencia Nutrition Ltd. (VNL), a Bengaluru-based start-up, which was listed in Bombay Stock Exchange Start-Up Exchange on January 6, 2020. VNL is an applied biotechnology start-up company and offers multinutrient functional beverages to prevent or manage lifestyle-related diseases. Recently, VNL has faced a series of disruptions, including the major disruption in business due to the COVID-19 pandemic shutdown. This has resulted in negative earnings and cash flow from operating activities. Deteriorating financial health has led to a significant fall in the share price of VNL, which decreased from INR 46.45 on the day of listing to INR 19 per share by the end of March 2021. Sanjay is wondering whether this is the right time for the members of AN Angel Investors to invest in VNL. This dilemma necessitated Sanjay to estimate the fair value of VNL. However, the company's negative earnings and cash flow, coupled with significant off-balance sheet intangible assets, posed a challenge to Sanjay during the valuation process. Students will be asked to explain the value creation process used by VNL, identify the sources of value for VNL shareholders, and help Sanjay choose the appropriate valuation method to estimate the fair value of VNL shares.

Notes:

Description based on XML content.

ISBN:

1-0719-4185-2

9781071941850

OCLC:

1417357969