The situation
Agreed enterprise value is ₹180 crore. Closing net debt is ₹35 crore. Actual eligible working capital is ₹16 crore versus a ₹20 crore peg. Assume a rupee-for-rupee adjustment.
Your task
Calculate the seller’s closing equity proceeds.
Reveal step-by-step solution
Set up the problem
Base equity = ₹180 − ₹35 = ₹145 crore.
Work through the numbers
Working capital adjustment = ₹16 − ₹20 = −₹4 crore.
Interpret the result
Closing equity proceeds are ₹141 crore. Reconcile the working capital and net debt schedules for overlapping items.
What to remember
Start from enterprise value and apply signed adjustments under the agreement definitions.