Abstract

The case examines the financial performance of two petroleum refineries - MRPL and RPL - established by the private sector in India during the mid-1990s. Though the shares of both these refineries were oversubscribed by investors during their public issue, the financial performance of these companies was very different during the period 1999-2002. The case studies the returns provided by the shares of both these companies and compare them with the overall stock market returns during the period 1996-2002. It analyzes the systematic risk (Beta) involved when investing in the shares of these companies.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Analyzing returns and risk on the shares of MRPL and RPL.

Keywords

MRPL, RPL, private sector, India, mid-1990s, refineries, oversubscribed, investors, public issue, financial performance, 1999-2002, shares, stock market, 1996-2002, systematic risk, Beta, investing