Abstract

The case Reliance Petroleum’s TOCD issue (B) analyzes the new option provided to the TOCD holders after an extra ordinary general meeting of RPL held in April 1998. It provides a detailed explanation of the alternatives and the options available to the investor, which were evaluated on the basis of their yield to maturity. The case is designed to help students critically analyze alternative options available to an investor at the time of exercising an option for conversion. Analyzing various options of conversion available to the investors of RPL TOCD on the basis of yield to maturity and drawing suitable conclusions. To gain an understanding in the mechanics of financial analysis and develop skills in making suitable decisions based on the returns earned on an investment.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Convertible securities
• Public issues
• Financing.

Keywords

Reliance Petroleum, TOCD, innovative convertible security, September 1993, refinery project, Jamnagar, Gujarat, instrument, options, investor, yield to maturity, finance, public investors, organization