Edelweiss

Financial
Services
Limited
Edelweiss Financial
Services
Ltd
Debt Advisory Credentials

Edelweiss Financial Services Limited A Leading Diversified Financial Services Firm

Overview

Group Businesses

Founded in 1995 and has evolved into a diversified financial services firm

~4,001 professionals with 216 offices spread across India & overseas

Credit & Fixed Income group of ~100 professionals

Group Net worth INR 30.95 bn as on March 2014 (including Minority)

Voted as Indias Best Managed Company by Finance Asia in 2013 &

Credit & Fixed

Income

Investment
Banking

2014 Two years in a row in mid cap/upto $ 500 mn market cap Cos.

Financial Performance (INR mn)

Total Income (LHS)

Key Institutional
Investors

PAT (RHS)

30,000

3,000

25,000

2,500

20,000

2,000

BIH SA

15,000

1,500

GPC

10,000

1,000

SAIF Partners

5,000
0

Institutional
Equity

Corporate Loan Book Size of ~ INR 58 bn

Leading debt arranger in DCM space with overall

market share of ~9%

Debt Advisory services spanning Syndication and

Restructuring with ~INR 110 bn mandated
transactions

Successfully completed
transactions to date

Strong capital raising track record in infrastructure

space

Amongst the largest

brokerage houses

Research coverage of over 187 companies across

20 sectors

Network of 216 offices & ~5,700 sub-brokers

Ranked #1 in non institutional distribution in FY11

and #2 in retail distribution of IPOs in FY12

Ranked #1 in IPO
distribution in FY14 in
Retail+HNI Categories taken together

Alternative Assets AuM/AuAs of over USD 1.96

bn equivalent spread across multiple funds,
Structured Products & ARC

Life Insurance JV with Tokio Marine; INR 5.5 bn

start-up equity infusion in the company by the JV
partners; further infusion of INR 2.5 bn in FY14

Sourcing and distribution of agri commodities and

precious metals

Distribution

500

2004

2007

2013

2014

Others

more

domestic

than

200

institutional

Credit & Fixed Income (CFI) Overview

ADVISORY
Fixed Income
Advisory Syndication

Project Financing
Working Capital Financing
Balance Sheet Financing
External Commercial Borrowings
Refinancing / Securitization / Alternate Capital

Debt Capital Markets

Long Term
Short Term
Sales & Broking

Fixed Income
Markets

Fixed Income
Advisory Restructuring

Corporate Debt Restructuring (CDR)

Bilateral Restructuring/ One Time Settlements/ Negotiated Settlements
Recapitalization

CAPITAL
Corporate
Finance & Credit

Key Success Factors

Corporate and Lender Relationships
Structuring Capabilities
Experienced Team
Domain Knowledge & Expertise

Collateralised Lending
Structured Financing
Bridge and Episodic Financing

Process Efficiencies

Effective Risk Management

Real Estate

Real Estate Financing

Real Estate Investment

Leasing &
Equipment
Finance

Leasing Solutions
Equipment Financing

Product Offering

NCDs/ Bonds/ Corporate Loan

Restructuring / CDR

GROWTH

Acquisition
Financing

Recapitalization

Expansion
Financing
Resetting of
Credit Lines

Greenfield
Project Financing

Debt Syndication

Fixed Income Markets

Debt Restructuring

CORPORATE LIFE CYCLE

Complete debt solutions across growth and stress situations

Fixed Income Advisory - Syndication

Team Credentials Syndication

Syndication Experience
(> INR 240 bn)

4%

3% 2%

Diversified experience: Executed mandates in Infrastructure, Real

Estate, Chemicals, Metals etc

5%
37%
6%

Mandated transactions in excess of INR 25 bn across sectors:

Infrastructure,

6%

Real

Estate,

Renewable

Energy,

Hospitality,

Manufacturing, Textiles, NBFC, Retail, etc

8%

18%

9%

Strong relationship with Banks (PSU/Private), Institutions and Lending

Agencies

10%

Infrastructure
Others
Metals

NBFC
Chemicals
Sugars

Diversified
Manufacturing
Cement

Real Estate
Media

Expertise of 25+ members team, to execute the transaction from

initiation stage to deal structuring to debt placement

Diverse sector experience & strong lender relationships

Select Experience in Real Estate Sector

Structured Finance

Construction Finance

Structured Finance

Construction Finance

INR 1,300 mn

INR 800 mn

INR 1,600 mn

INR 1,200 mn

Construction Finance
Advisory

Structured Finance
Advisory

Structured Finance
Advisory

Construction Finance
Advisory

INR 7,000 mn

INR 500 mn

INR 420 mn

INR 880 mn

Select Transactions

Select Transactions

Select Transactions

Case Study : Project Finance

Overview

Kayem Foods Industries Pvt Ltd (KFIPL), successfully completed debt raise of INR 2,142
million Project Finance for KFIPLs Breakfast Cereals Manufacturing Unit from consortium
of lenders including Central Bank of India (lead bank), Bank of Baroda, Indian Overseas
Bank & Vijaya Bank.

About the Company

Incorporated in 1986, KFIPL is promoted by Mr. Rakesh Mahajan having over 40 years of
experience in food processing industry. Mahajan Group companies viz. KFIPL & Pan Foods
Ltd. have extensive presence in Baby Cereal Ingredients, Mayonnaise, Ketchups, Jams &
de-hydrated fruits & vegetables.

The company is setting up a new facility at Rai, Haryana to manufacture high growth and
high margin Breakfast Cereals, Oats & Cereal Bars with an aggregate capacity of 42,300
TPA

About the Transaction

Breakfast Cereals is a relatively nascent industry in India. It is difficult to identify industry

peers & establish benchmarks. Domestic lenders are also unfamiliar with industry
dynamics.

In such an environment, raising funds for a small player looking to scale up 8-10 times of
existing operations, presented a unique set of challenges.

Case Study : Non Banking Finance Company

Overview

HDB Financial Services Limited (HDBFS) successfully raised INR 4,500 mn from Bank of
Baroda and Punjab & Sind Bank to meet their fund raising requirements

About the Company

HDB Financial Services (HDBFS or the Company) is a non-banking financial company
established by HDFC Bank in June 2007. HDFC Bank owns 97.38 per cent share in
HDBFSs as on December 31, 2013
The company is rated AAA/A1+ (Crisil)

About the Transaction

Edelweiss Financial Services Limited acted as a Sole Financial Advisor and Arranger

Edelweiss aided the company in structuring and attaining optimum pricing for the
term loan facilities. Major challenge was bringing the pricing offered by the Lenders in
line with the expectations of the Company

Case Study : Structured Finance

Overview

Aditya Birla Retail Limited (ABRL ) successfully raised INR 2,150 mn from Indusind Bank
to meet their capex and long term working capital requirements.

About the Company

ABRL is the retail venture of Aditya Birla Group (US$ 40 billion Group). ABRL operates
a chain of supermarkets and hypermarkets at a national level.

About the Transaction

The major challenge was the Company not achieving break even as yet and majority
of its borrowings being short term or medium term thereby putting strain on
operational cash flows.
Edelweiss was instrumental in structuring a term loan of 6 year door-to-door tenor
with diluted security and very competitive pricing.

Case Study : Project Finance

Overview

Nitin Spinners Limited (NSL), successfully raised INR 2,000 mn Term Debt from
Consortium of Lenders - Punjab National Bank, Bank of Baroda, State Bank of Bikaner
and Jaipur and Syndicate Bank for expansion of existing spinning capacity at Bhilwara,
Rajasthan.

About the Company

NSL is engaged in the manufacturing of cotton yarn and cotton knitted fabrics with
installed manufacturing capacity of 22,650 tons of yarn per annum

About the Transaction

Company undertook a major expansion programme to double the capacity with a
project cost of INR 2860.00 mn
Textile industry has faced challenges in terms of higher input costs, unstable demand
and heavy competition. Several textile companies have underperformed and
continue to be under liquidity stress
Despite the challenges, Edelweiss managed to raise funds for the company, which
had exited Corporate Debt Restructuring Forum in the same year at very competitive
terms from lenders

Case Study : Non Banking Finance Company

Overview
Fullerton India Credit Company Limited (FICCL) successfully raised INR 5,000 mn from
State Bank of India, State Bank of Hyderabad and State Bank of Bikaner & Jaipur to
meet their fund raising requirements

About the Company

FICCL is a non-banking financial company established by Temasek Holdings (Pte) Ltd in
Dec 2005. Temasek Holdings is an investment company owned by the Government of
Singapore with a Net Portfolio of $179 billion as on 31st March, 2014
FICCL is rated AA+/A1+ (ICRA / Fitch Ratings)

About the Transaction

Edelweiss Financial Services Limited acted as a Sole Financial Advisor and Arranger

FICCL being a Loan Company, major challenge faced was arranging term loan facilities
from SBI & its subsidiaries at competitive pricing with largest exposure from a single
lender, since its inception.

Case Study : Project Finance

Overview

Essel MP Energy Limited (EMPEL) successfully raised INR 1,961 mn Term Debt from
Consortium of Lenders for setting up 20 MW Solar Power Project at Maharashtra.

About the Company

EMPEL is a part of Essel Group and is a 100% subsidiary of Essel Infraprojects Limited,
one of the leading Infrastructure Companies in India.

About the Transaction

EMPEL was awarded development of 20 MW solar power project by NTPC Vidyut

Vypar Nigam Limited (NVVN) under Jawaharlal Nehru National Solar Mission.
The financial closure was achieved in less than 3 months despite power industry
related concerns such as sectoral exposure limits and land acquisition issues.

Case Study : Balance Sheet Funding

Overview

Edelweiss arranged Balance Sheet funding (Corporate loan facility) of INR 800 million for
augmenting the net working capital position as well as meeting repayment obligations

About the Company

Incorporated in 1982, JBF Industries Limited (JBF) is one of the largest polyester value
chain companies in India having presence in India and few other countries. JBF Group is
engaged in the manufacturing of polyester yarn, polyester chips and polyester films.
The Group has manufacturing facilities at Gujarat, UAE, Bahrain and Belgium with a current
polymerization capacity of 1.5 MMTPA and downstream capacity of 0.5 MMTPA.
The Companys bank facilities have been rated A-/A1 by CARE and FITCH.

About the Transaction

Edelweiss arranged Balance Sheet funding (Corporate loan facility) of INR 800 million for
augmenting the net working capital position as well as meeting repayment obligations.
The major challenge was obtaining funding at competitive terms, especially when the Banks
are apprehensive in giving corporate loans. Edelweiss successfully managed to arrange the
corporate loan within the envisaged time frame.

Case Study : Working Capital

Overview
Diamond Power Infrastructure Limited (DPIL), successfully raised INR 1,000 mn
Working Capital Loan from State Bank of Hyderabad to meet their working capital
requirements and refinancing of its select existing facilities

About the Company

DPIL is engaged in the manufacture of aluminum conductor steel reinforced
transmission conductors, low tension and high tension cables and transmission towers
One of the top five power cable manufacturers and largest and only integrated
manufacturer of Power equipment in India

About the Transaction

The major challenges were the power sector exposure for Bank, replacement of
existing bank with new one and better pricing structure
Edelweiss arranged working capital funds for the company at very competitive terms
despite the challenges involved

Case Study : Recapitalization

Overview

PIX Transmissions Limited successfully sold its Hydraulic Hose & Fitting Division to
Parker-Hannifin India Pvt. Ltd. (a 100% subsidiary of US based Parker Hannifin Corp.
with a market cap of ~ USD 12 bn).

About the Company

PIX Transmissions Limited is engaged in the business of Mechanical & Fluid Power
Transmission products. These products find application primarily in industrial,
automotive and agricultural space.

About the Transaction

Upon evaluation of various alternatives, it was decided to partner / sale Hydraulic
Hose & Fitting Business to reduce the stress on the cash flows and recapitalize its
major business i.e. Belt business for future growth engine.
Top 3 out of 4 global players evinced interest in partnering / acquiring the Companys
Hydraulic Hose & Fitting Business. The transaction value (for 1/3rd of the business)
was higher than the Enterprise Value of the entire Company.
Transaction posed challenges such as smaller operation size of the Company in
relation to the acquirer, bridging price expectations & overall transaction structuring.

Fixed Income Markets

Success in Debt Capital Markets

Appointed as Arranger to key Primary Issues for FY 2015 and FY2014

FY15

In FY15 we lead managed the Public Issues of ECL Finance Sub Debt, Shriram Transport Finance, IFCI and SREI Infrastructure Finance
Secured NCDs

We garnered more than 40% of the total allotted amount in these issues

We arranged NCD issuances of more than INR 23,000 crs through private placement for issuers including Family Credit, India Infoline,
REC , PFC, KMPL, KRCL, PGCIL, Andhra Bank, OBC, Vijaya Bank etc

FY14

Of the 35 public issues in FY14, Edelweiss lead managed 11 issues

We placed NCDs of: PFC, REC, PGCIL, HUDCO, HDFC,SREI, Aditya Birla Finance, Aditya Birla Nuvo, Tata Capital, Tata Motors, Marico
Industries, L&T Infra, Sundaram Finance, SBI Global Factors, Hero Cycle, Bajaj Finance etc

League table summary H2FY 2015# (Source: Prime Database)

Number of Deals
Public Issue
Private Placement
Short Term
*Excluding banks

6
60
207

Total Amt Mobilized

(INR cr)
5,462
63,978
323

League Table
Ranking
1
6*
6

#Updated upto Feb 15

One of the strongest distribution networks on the street

Institutional: Relationships with 500+ clients including NBFCs, FIs, Banks, Insurance Companies, MFs and FIIs across US, Europe and South East
Asia

Non-Institutional: Currently ~INR 32,000 mn of AuA across a broad based clientele. Also, one of the largest IPO financiers to the non
institutional segment

Case Studies

Managed to place the issue at much

finer yields when compared to peers
in real estate sector
Issued 3 year bonds with a coupon of
10.30% and 5 year paper at 10.20%
on the same day
Sizable quality credit transaction in
the real estate space one of the
highlights of the year

Amongst the few transactions in the

healthcare space. In addition, the
thin supply in the 5-year corporate
segment adds further rarity value to
the deal
The bond has a call option at the end
of 3 years as to most issues which
have both a call and a put. In a first of
sorts, the coupon step downs after
the call exercise

Executed the deal leveraging our

relationship with HNIs
Coordinated with multiple arrangers
to smoothly execute the deal in tight
deadlines
These Cumulative Non- convertible
Redeemable Preference Shares were
issued at a premium of Rs 10/- & face
value of Rs 10/-,

Debt Market Public Issue of Bonds

Debt Market - Select Transactions Closure (PSU)

Debt Market - Select Transactions Closure (Private Sector)

Debt Market - Select Transactions Closure (Private Sector)

Debt Market Public Issue of Bonds (PSU Tax-Free)

Senior Management Team

Ravi Bubna
Managing Director & CEO - Credit & Fixed Income.
Over 23 years of experience in Credit & Fixed Income, Corporate Finance, Quantitative Financing, Risk & General Management.
Instrumental in establishing the Edelweiss Groups credit business and spearheading its accelerated growth.
Prior to joining Edelweiss, worked as Joint President and Country Head - Birla Global Finance Ltd. (Aditya Birla Group)

Akhil Mangla

Sanjeev Rastogi

Head - North India

Over 20 years of
experience
in
Corporate Finance
and Credit; has
been instrumental
in establishing the
Corporate Finance
practice in the
North India

Om Prakash Jain
Head - Origination
Over 17 years of
experience in Debt
Advisory;
has
originated
and
successfully
executed
transactions worth
more than INR 180
bn

Head - Real Estate

Over 18 years of
experience in Real
Estate and Financial
services; has raised
and managed ~INR 23
bn equivalent RE
Equity
Fund
and
deployed ~INR 10 bn
in
RE
debt
transactions

Rohit Mehta

Sanjay Phadke
Head CFC & CSG,
Mumbai
Over
16
years
of
experience in Corporate
Finance,
Structured
Finance,
IB
and
Derivative Sales
Previous
assignments
with IDFC, JP Morgan,
HSBC and ICICI Securities

Shrenik Vora
Head - Restructuring
Over 19 years of
experience in Debt
Advisory;
has
successfully
executed
transactions worth
more than
INR
150 bn

Head - Syndication
Over 16 years of
experience in Debt
Advisory;
has
successfully
executed
transactions worth
more than
INR
200 bn

Ram Yadav
CEO Real Estate
Over 18 years of
experience in Real
Estate sector
Previous assignment
with
Orbit
Corporation Ltd. ,
Shapoorji Pallonji &
Co Ltd and Mohatta &
Heckel Ltd.

Ajay Manglunia
Head - FIM
Over 20 years of
experience;
established the FIM
Desk at Edelweiss;
executed
transactions worth
more than INR 80 bn
in FY13

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