India Infoline Limited

A. K. Stockmart

A.K. Stockmart Pvt. Ltd.

Public Issue of Secured Redeemable Non-Convertible Debentures India Infoline Investment Services Limited

India Infoline Limited

A. K. Stockmart

INVESTMENT RATIONALE
Opportunity to invest in one of the Indias leading financial services company This NCDs are proposed to be listed on the National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE) The issue has attractive interest rates ranging from [ ]% to [ ]%

COMPANY PROFILE
India Infoline Investment Services Limited (IIISL) is an non-deposit taking NBFC incorporated on July 7, 2004 as a private limited company and was changed to public limited company on May 15, 2007 The company is a downstream subsidiary of IIFL, with investment in India Infoline Housing Finance Ltd (license received in 2009), Moneyline Credit Ltd. (an NBFC) & India Infoline Distribution Co. Ltd The company offers a broad range of lending and other financial products to both corporate and retail clients including retail mortgage loan, gold loan, Healthcare Finance & Corporate Mortgage Loans etc As on June 30, 2011, IIFL has presence in over 3,000 Business Locations which include over 450 branches and over 2,500 franchisees, spread across 506 cities in 29 states and union territories in India The Consolidated Income from Operation and Profit After Tax has grown at a 3 year CAGR of 43.16% and 56.78% respectively to ` ` 469.77 crore and ` 92.25 crore during FY 10-11 The consolidated loan book of the company has expanded almost by double its size to ` 3,288.97 crore during FY 10-11 as compared to ` 1,626.78 crore a year ago The standalone CRAR of the company stood at 29.95% as on 31st March2011 well above the prescribed RBI norm of 15% and the consolidated net worth of the company rose to ` 1,341.20 crore in FY 10-11 over ` 1,264.43 crore in FY 09-10 The Consolidated Net NPA of the company has improved to 0.36% as on 31st Mar2011 over 0.46% a year ago
Source: Draft Prospectus dated July 20, 2011

India Infoline Limited

STRENGTHS
Parental Support:

A. K. Stockmart

The company is expected to draw benefits from its Promoter group, IIFL, which is a diversified financial services company with a pan-India presence. It helps the company in drawing upon a range of resources and shared resources from IIFL and further leverage upon the branch network of IIFL for expansion, new product launch & building scale.
Adequate Capitalization to fund the growth:

As of March 31, 2011 our capital adequacy ratio computed on the basis of applicable RBI requirement was 29.95% as compared to a minimum of capital adequacy requirement of 15% stipulated by RBI for FY11 indicating companys strong ability in writing new business and support its growth.
Strong Asset Quality: Since 2008, the company has been providing only secured finance which ensures lower NPAs and lesser recovery related problems. As of March 31, 2011, over 99% of its Loan Book on a consolidated basis is secured. As on March 31, 2011 on a consolidated basis the net NPA constituted 0.36% of the Loan Book, as compared to 0.46% as on March 31, 2010. Access to cost effective funding sources The funding requirements are predominantly sourced through term loans from banks, issue of redeemable non-convertible debentures on a private placement basis and cash credit from banks including working capital loans. The companys ability to develop a stable long term relationships with its lenders and a consistent track record of timely servicing of debts has reduced its average cost of borrowing to 9.43% in FY 10-11 as compared to 9.52% in FY 09-10. Experienced Management Team The Board of Directors comprises of 6 directors with significant experience in the banking and finance sector. The extensive relevant experience and financial acumen of the companys management and executives provides it with a distinct competitive advantage.

ISSUE SALIENT FEATURES

Interest rate range from [ ]% to [ ]% depending on the series applied for (Option I & Option III) Higher interest rates for individuals applying up to Rs. 500,000 Credit Ratings of AA- by CARE and AA-/Stable by ICRA NCDs are allotted on first cum first serve basis NCDs are allotted on demat mode only NCDs have three series of options: 36 months, 40 months and 60 months
Source: Draft Prospectus dated July 20, 2011

India Infoline Limited

ISSUE TIME TABLE
Issue Opening Date Issue Closing Date

A. K. Stockmart

Deemed Date of Allotment Issue Size Instrument Credit Rating Tenor/Redemption Date Trustee Interest on Application Money

[] [], 2011, or such earlier date that the Board of Directors/ authorized Committee of the Board of Directors of our Company decide, as the case may be, and communicated to the prospective investors and the Stock Exchanges through notice of such early closure given on such early date of closure through advertisement/s in a leading national daily newspaper Deemed date of allotment shall be the date of issue of the Allotment Advice / regret Base issue size of Rs. 3,750 million with an option to retain over-subscription upto Rs. 3,750 million for issuance of additional NCDs aggregating to a total of upto Rs. 7,500 million. Public Issue of Non-Convertible Debentures AA-/Stable by ICRA and AA- by CARE 36 Months for Option I; 40 Months for Option II; 60 Months for Option III IDBI Trusteeship Services Limited @ [] % on application money on the amount allotted, subject to the deduction of Income Tax under the provisions of the Income Tax Act 1961, as amended, as applicable, from the date of realization of the application amount or from three days from the date of receipt of the application, whichever is later, up to one day prior to the Deemed Date of Allotment @ [] % on application money which is liable to be refunded in accordance with the provisions of the Debt Regulations and/or the Companies Act, or other applicable statutory and/or regulatory requirements, subject to the deduction of Income Tax under the provisions of the Income Tax Act 1961, as amended, as applicable, from the date of realization of the application amount or from three days from the date of receipt of the application, whichever is later, up to one day prior to the Deemed Date of Allotment

Interest on Application Money which is liable to be refunded

Source: Draft Prospectus dated July 20, 2011

India Infoline Limited

ISSUE CATEGORIES AND ALLOTMENT
Category I Public Financial Institutions, Statutory Corporations, Commercial Banks, Co-operative Banks and Regional Rural Banks, which are authorised to invest in the NCDs; Provident Funds, Pension Funds, Superannuation Funds and Gratuity Fund, which are authorised to invest in the NCDs; Venture Capital funds registered with SEBI; Insurance Companies registered with the IRDA; National Investment Fund; and

A. K. Stockmart
II III * Companies; bodies corporate and Resident Indian individuals; and societies registered under the applicable laws in India and authorised to invest in the NCDs; Public/private charitable/religious trusts which are authorised to invest in the NCDs; Scientific and/or industrial research organisations, which are authorised to invest in the NCDs; Partnership firms in the name of the partners; and Limited liability partnerships formed and registered under the provisions of the Limited Liability Partnership Act, 2008 (No. 6 of 2009) Hindu Undivided Families through the Karta

Mutual Funds

Allotment for Category 20%

I 20%

II

III * 40% Reserved Individual Portion (Individuals and HUF) 20% Unreserved Individual Portion (HNIs)

* With respect to applications received from Category III applicants, applications by applicants who apply for NCDs aggregating to a value not more than Rs. 500,000, across all series of NCDs, (Option I and/or Option II and/or Option III), shall be grouped together, (Reserved Individual Portion) while applications by applicants who apply for NCDs aggregating to a value exceeding Rs. 500,000, across all series of NCDs, (Option I and/or Option II and/or Option III), shall be separately grouped together, (Unreserved Individual Portion).
Source: Draft Prospectus dated July 20, 2011

India Infoline Limited

ISSUE INVESTMENT OPTIONS
Options
Minimum Application Face Value/Issue Price In Multiples Of Interest/Coupon Rate Offered * Effective Yield * Frequency of Interest Payment Tenor/Redemption Date [] % per annum [] % per annum Annual 36 Months

A. K. Stockmart
I II
Rs. 5,000 (5 NCDs) Rs. 1,000 (1 NCD) Rs. 1,000 (1 NCD) NA/Premium on Redemption [] % per annum NA 40 Months [] % per annum [] % per annum Annual 60 Months

III

* Differential interest rates and effective yields for i) Institutional and Non Institutional ii) Unreserved Individual Portion (HNIs) iii) Reserved Individual Portion (Individuals and HUF)

APPLICATIONS CANNOT BE MADE BY

Minors without a guardian name; Foreign nationals; Persons resident outside India; Foreign Institutional Investors; Non Resident Indians; and Overseas Corporate Bodies

UNDER SUBSCRIPTION
Under subscription, if any, in Reserved Individual Portion or Unreserved Individual Portion shall first be met by inter-se adjustment between these two sub-categories. Thereafter, if there is any under subscription in any Portion, priority in allotments will be given to the Category III, with preference in allotments to Reserved Individual Portion applicants, and balance, if any, shall be first made to applicants of the Non-Institutional Portion (Category II), and thereafter to Institutional Portion (Category I) on a first come first serve basis, on proportionate basis.

OVER SUBSCRIPTION
In case of an oversubscription, allotments to the maximum extent, as possible, will be made on a first-come first-serve basis and thereafter on proportionate basis, i.e. full allotment of NCDs to the applicants on a first come first basis up to the date falling one day prior to the date of oversubscription and proportionate allotment of NCDs to the applicants on the date of oversubscription (based on the date of presentation of each application to the Bankers to the Issue, in each Portion).
Source: Draft Prospectus dated July 20, 2011

India Infoline Limited

FINANCIAL HIGHLIGHTS (Consolidated)

A. K. Stockmart
(Rs. in Crores)

As on/For the year/Period ended

Share Capital Reserve and Surplus Net Worth Secured Loans Unsecured Loans Total Loans Fixed Assets (Net Block) Investments

March 31, 2011

237.15 1,104.05 1,341.20 1,399.84 893.20 2,293.04 16.37 149.07

March 31, 2010

23.72 1,240.71 1,264.43 360.94 659.00 1,019.94 1.92 112.98

March 31, 2009

23.72 1,187.10 1,210.81 225.69 225.69 3.70 238.14

March 31, 2008

23.72 1,118.93 1,135.42 100.00 604.58 704.58 2.74 829.23

Current Assets Loans & Advances Current Assets, Loans & Advances

136.58 3,597.78 3,734.36

218.47 2,013.53 2,232.00

192.31 1,118.33 1,310.64

88.90 971.17 1,060.07

Total Income Total Expenditure (including depreciation and interest) Profit Before Tax Profit After Tax Net Non Performing Assets (NPA) % Capital Adequacy Ratio (CAR) %*

519.49 385.45 134.04 92.24 0.36% 29.95%

233.96 157.36 76.60 53.79 0.46% 47.65%

238.13 152.17 85.96 69.12 97.77%

164.49 136.75 27.75 23.94 -

Amounts might not add up due to rounding off Source: Draft Prospectus dated July 20, 2011
*standalone

India Infoline Limited

DISCLAIMER:

A. K. Stockmart

The investors shall invest only on the basis of information contained in the draft prospectus/prospectus
This document has been prepared by A. K. STOCKMART (P) LTD. This document is subject to changes without prior notice and is intended only for the person or entity to which it is addressed to. No portion of this document shall be reproduced, reprinted, duplicated, sold or redistributed. Also, this publication may not be distributed to the public media or quoted or used by the public media without the express written consent of A. K. STOCKMART (P) LTD. Kindly note this document does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. A. K. STOCKMART (P) LTD. will not treat recipients as customers by virtue of their receiving this report. The information contained herein is from publicly available data. 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India Infoline Limited

A. K. Stockmart

A. K. Stockmart Pvt. Ltd.

30-39, Free Press House, 3rd Floor, Free Press Journal Marg, 215, Nariman Point, Mumbai 400 021 Tel. No.: 91-22-67546500 / 67544744 Fax.: 91-22-67544666 Toll Free No.: 1800-209-3113 Customer Care ID.: brokinghelpdesk@akgroup.co.in Investor Grievances: investorgrievance@akgroup.co.in