Globalization of business, revolution of Information and Communication Technology (ICT), changing in Govt. regulations, impact of prices and fluctuation in foreign currencies rates, requirement of funding for business expansion, all these factors compelling the corporate world to change and reconstruct their capital structure. Companies often change capital structure by issuing new shares through Initial Public Offer (IPO) usually with Bank's joint venture. Shares sometime issue on discount, means below face value, or by purchasing of its own shares from stock market. Amalgamation is one of the common technique for alteration of capital structure. It is a process in which two companies combines together and form new company with new funding, new resources for expansion of business. Both companies (Amalgamating and Amalgamated) assets and liabilities are revalued and restated in order to represent true financial position. The reason for amalgamation may be to expand business...
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