The story behind the numbers
Plain-English definitions for the terms used in the articles.
Large institutional investor allotted IPO shares a day before the issue opens, to build confidence in the price.
Perpetual bank bond that can be written down in stress. Higher yield, higher risk.
The IPO process where investors bid within a price band and the final price is discovered from demand.
CFO divided by EBITDA. Shows how much of reported operating profit turned into cash.
Receivable days plus inventory days minus payable days. How long cash is stuck in operations.
Cash flow from operations. Cash the business actually generated from its core activities in the period.
Extra a buyer pays over market price to gain control of a company.
Splitting a company into two or more separate businesses, usually with shares allotted to existing shareholders.
Draft Red Herring Prospectus. The draft offer document filed with SEBI before an IPO.
Debt service coverage ratio. Cash available to pay interest and principal divided by the amount due.
Part of a purchase price paid later, and only if the acquired business meets agreed targets.
Earnings before interest, tax, depreciation and amortisation. A rough measure of operating profit before financing and accounting charges.
Money held by a neutral party until agreed conditions are met.
Employee stock option plan. Right to buy company shares at a fixed price after vesting.
Enterprise value: equity value plus debt minus cash. What it costs to buy the whole business.
Enterprise value divided by EBITDA. The most common way to compare what buyers pay for similar businesses.
EBIT divided by interest expense. How comfortably profit covers interest.
Average days stock sits before it is sold. Inventory divided by cost of goods, times 365.
Using borrowed money to fund the business. It lifts returns in good years and losses in bad ones.
Mandatory offer to public shareholders after an acquirer crosses a regulatory stake threshold.
The value of confirmed orders not yet delivered or billed. It shows revenue visibility, not cash.
Average days the company takes to pay suppliers. Payables divided by cost of goods, times 365.
Shares of the company that promoters have pledged to lenders as security for loans.
Average days customers take to pay. Receivables divided by sales, times 365.
A deal between a company and someone connected to it, such as a promoter or a group company. Minority shareholders often get the final vote.
The SEBI regulations that govern acquisitions of listed companies, including when an open offer is compulsory.
Receivables plus inventory minus payables. Money the business keeps tied up to operate day to day.