Loading article...
Loading article...
Stream/Area:
-
Subject:
-
Paper ID:
IJSREM68096
Volume:
10 |
10 |
Oct 2026
Pages:
1-8
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
Master of Business Administration
LOVELY PROFESSIONAL UNIVERSITY
Master of Business Administration
LOVELY PROFESSIONAL UNIVERSITY
Master of Business Administration
LOVELY PROFESSIONAL UNIVERSITY
Master of Business Administration
LOVELY PROFESSIONAL UNIVERSITY
This study examines the sources of finance used by ABC Solutions Limited and their role in supporting business operations and growth. Using a descriptive and analytical research design, the study analyses secondary data from annual reports, financial statements and public disclosures over FY2021–22 to FY2025–26. The findings show that ABC relied on a combination of equity capital, institutional funding, debt, trade credit and internally generated funds. Equity remained the dominant source, with shareholders' equity rising from ₹294.81 crore in FY2022 to ₹885.17 crore in FY2026, while the debt-equity ratio remained moderate, declining to 0.35 after the FY2025–26 IPO. Private equity and institutional investors such as KKR, Temasek, Alpha Wave Global, ADIA, ChrysCapital and Fidelity supported its high-growth phase, and the IPO further strengthened its equity base and access to public capital markets. Internal finance gained importance as profitability improved and operating cash flow turned positive, reaching ₹886.70 crore in FY2026. Overall, ABC shifted from greater reliance on external institutional funding toward a more equity-oriented and diversified financing structure with moderate debt and stronger internal cash generation. The study concludes that a balanced mix of equity and debt, improved working-capital efficiency and prudent leverage will remain important for sustaining ABC's expansion and financial flexibility.
KEYWORDS
The study concludes that ABC Solutions Limited developed a stronger and more equity-focused financing structure during FY2021–22 to FY2025–26. The company used a combination of equity, institutional funding, debt, trade credit and internal funds to support its expansion, working capital, technology and day-to-day operations. Equity became more important following the FY2025–26 IPO, while debt remained moderate, with the debt-equity ratio falling to 0.35. Improved profitability and operating cash generation also strengthened the company’s ability to finance its needs internally and reduced its relative dependence on debt. Overall, ABC gradually moved from greater reliance on institutional funding toward a more diversified financing structure. The IPO strengthened its equity base, while controlled debt and improved internal cash generation provide support for future growth. Going forward, maintaining a suitable balance between equity, debt and internal funds will be important for managing financial risk while supporting continued expansion.
· Graham, J. R., & Leary, M. T. (2011). A review of empirical capital structure research and directions for the future. Annual Review of Financial Economics, 3, 309–345. · Harris, M., & Raviv, A. (1991). The theory of capital structure. The Journal of Finance, 46(1), 297–355. https://doi.org/10.1111/j.1540-6261.1991.tb03753.x · Jagannathan, R., Matsa, D. A., Meier, I., & Tarhan, V. (2017). Why do firms use high debt? Journal of Financial Economics, 124(1), 1–21. · Kumar, S., Colombage, S., & Rao, P. (2017). Research on capital structure determinants: A review and future directions. International Journal of Managerial Finance, 13(2), 106–132. https://doi.org/10.1108/IJMF-09-2014-0135 · Myers, S. C. (2003). Financing of corporations. In G. M. Constantinides, M. Harris, & R. M. Stulz (Eds.), Handbook of the Economics of Finance (Vol. 1, pp. 215–253). Elsevier. · Nguyen, B., et al. (2020). Research on trade credit: A systematic review and bibliometric analysis. Qualitative Research in Financial Markets, 12(4), 367–390. https://doi.org/10.1108/QRFM-09-2019-0103.
Publication Date
10/19/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
Documents
Article Views
1
Total views since publication
PDF Downloads
7
Total downloads since publication
Geographic Reach
5
Digital Preservation: This article is permanently archived on Zenodo and complies with all data preservation standards across major indexing platforms.
Plagiarism Screening
This manuscript has been checked for plagiarism using TurnitinPlagiarismChecker software.
Conflict of Interest
The authors declare no conflict of interest related to this research work.
Funding Information
No funding information available for this research.
Related research in the same subject area
Loading similar articles...