tg-me.com/bibarsov/74
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BY Bibarsov
![](https://photo.tg-me.com/u/cdn4.cdn-telegram.org/file/t04KkFIg9_afgz6Prg2vFRTSl0KNYKezpxJnlhuX7izPg2LmZIfGxrOxkhmt3bWFVv_SWdpPOo_F-B4pglXBJn8eR0sepRFxhEF6dv3hFKlpCl_dZb8AS7iMuA-3YmREpovmS6pXo7sqaR9-HXyBawCzrZA6eTPsH6j4JizVbs3-1mYPChTcyfc23U7EC7pEjqfgvEEIzBMpP-UnQ4Lv_FhvUiTMBcPI2Ctf9qT5KSn9As6w92C244kUzd-MwSj_t4KlljTRPzsqyVzZHDIjqsf5Gj1r_ZzkVwEvbNTrwu9I7uMcvkCDDJFBZV6UoxFnneouWSdstxRCSi1NFb0Avg.jpg)
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tg-me.com/bibarsov/74
BY Bibarsov
Tata Power whose core business is to generate, transmit and distribute electricity has made no money to investors in the last one decade. That is a big blunder considering it is one of the largest power generation companies in the country. One of the reasons is the company's huge debt levels which stood at ₹43,559 crore at the end of March 2021 compared to the company’s market capitalisation of ₹44,447 crore.
That strategy is the acquisition of a value-priced company by a growth company. Using the growth company's higher-priced stock for the acquisition can produce outsized revenue and earnings growth. Even better is the use of cash, particularly in a growth period when financial aggressiveness is accepted and even positively viewed.he key public rationale behind this strategy is synergy - the 1+1=3 view. In many cases, synergy does occur and is valuable. However, in other cases, particularly as the strategy gains popularity, it doesn't. Joining two different organizations, workforces and cultures is a challenge. Simply putting two separate organizations together necessarily creates disruptions and conflicts that can undermine both operations.
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