BFSI Sector Trends - InvestmentGuruIndiavid.investmentguruindia.com/report/2019/June/BFSI Tracker...and at other centres does not exceed Rs 4.5mn and Rs 3mn, respectively, will be

BFSI Sector Trends

April 2019

Strictly Private and Confidential

Recent Developments in BFSI Space

News Run

1

Quick takeaways from events related to BFSI space

● RBI not in favour of special credit window for NBFCs

RBI is not in favour of providing special credit window to the NBFC sector to tide over the liquidity crunch as the cash crunch phenomenon is not systemic. Industry

players and government think-tank NITI Aayog made a case for giving special credit window for non-banking financial companies (NBFCs) facing liquidity crunch

following default by group of companies of IL&FS since Sept’18. Many NBFCs, including DHFL and Indiabulls Finance, came under severe liquidity pressure

compelling them to bring down their reliance on commercial papers.

● Public sector banks recover Rs 1.2 lakh cr from bad loans in 2018-19

Public sector banks have recovered close to Rs 1.2tn from stressed assets during the financial ended March, primarily helped by resolution under the Insolvency

and Bankruptcy Code (IBC). During the first half of the previous fiscal, banks recovered Rs 607.1bn from bad loans. Due to non-resolution of some big accounts

referred under NCLT (National Company Law Tribunal), PSBs could not achieve the resolution target of Rs 1.80tn

● Mobile-first approach: UPI transaction values beat cards in every month of Q4

According to NPCI and RBI data, the aggregate value of Unified Payments Interface (UPI) transactions crossed that of credit and debit card transactions in Jan’19

and remained higher through the first three months of 2019. In Jan’19, the value of UPI transactions stood at Rs 1.09tn, higher than Rs 1.05tn worth of transactions

recorded by the cards. The numbers in February were Rs 1.07tn for UPI and Rs 939.9bn for cards. In March, both modes of transactions crossed the Rs 1tn mark,

with UPI clocking Rs 1.33tn and cards notching up Rs 1.11tn in transaction value

● Slow income growth impending deposit growth: RBI study

According to a study by RBI, Decelerating income growth is the most important among the factors responsible for the slowdown in deposit mobilisation of the

banking system. The co-movement of deposit growth with the growth of nominal GDP is stronger than with the deposit interest rate, as per the study.

● NBFC liquidity crisis hits ‘loans against property’ market in FY19

As per a study conducted by India Ratings, a fall in recoveries due to weak property markets in metros, coupled with rising delinquencies, has led to weakening of

the loans against property (LAP) segment for financiers. Other segments, especially commercial vehicle loans which were not doing so good recently, are showing

signs of improvement. Delinquency indices for the LAP transactions rated by the agency have been on the rise and the 90-day overdue loans rising to 1.77% in

January from 1.05% in the year-ago period

Quick Takeaways

2

Source: Street research, Equirus Analysis

Quick takeaways from events related to BFSI space

● RBI enhances housing-loan limits under priority sector lending for RRBs, SFBs

RBI has decided to enhance the housing loan limits for Regional Rural Banks (RRBs) and Small Finance Banks (SFBs) for eligibility under priority sector lending, in a

bid to give them a level-playing field with other Scheduled Commercial Banks. Henceforth, housing loans given by RRBs and SFBs to individuals up to Rs 3.5mn in

metropolitan centres (with population of 1mn and above) and Rs 2.5mn in other centres, provided the overall cost of the dwelling unit in the metropolitan centres

and at other centres does not exceed Rs 4.5mn and Rs 3mn, respectively, will be eligible for classification under priority sector lending

● Bank credit to infra sector grows 18.5% in FY19: RBI data

RBI data suggests that Bank credit to infrastructure sector grew by 18.5% to Rs 10.55tn as of 2018-19, the highest since 2012-13 fiscal.

● Fall in housing finance companies’ loan growth can have spillover effects

According to ICRA, the deceleration in loan disbursements by housing finance companies (HFCs) could have a spillover impact on both retail home loan borrowers

and property developers. The housing finance sector has been facing challenges, which have led to contraction in spreads, a rise in funding cost and an increased

spotlight on their asset-liability mismatches

● Inflows into equity MF schemes down 60% on market turbulence, downgrades

Reflecting the turbulence in the capital market and the series of corporate rating downgrades, the inflow into equity schemes of mutual funds was down 60% in

April to Rs 46bn from Rs 115.7bn logged in March. Similarly, inflows into equity-linked tax-saving schemes dipped 83% last month to Rs 4.6bn from Rs 27.4bn

registered in March leading to a sharp drop in equity assets of mutual funds

● ICRA expects better realisations for lenders under IBC in FY20

As per ICRA, it expects financial creditors to realise more than Rs 800bn in FY20 from the IBC process, against the Rs 660bn realised in FY19. The optimism stems

from the expected conclusion of the Corporate Insolvency Resolution Processes (CIRPs) of two large accounts — Essar Steel and Bhushan Steel and Power Ltd. Both

these accounts are part of the RBI’s list of 12 large defaulting companies announced in Jun’17

● RBI withdraws circular to banks to disclose IL&FS exposure

With the National Company Law Appellate Tribunal (NCLAT) lifting the freeze on banks from declaring the accounts of debt-laden IL&FS and its group companies as

non-performing, the Reserve Bank of India withdrew its April 24 circular that required them to make specific disclosures in this regard

Quick Takeaways…(Cont’d)

3

Source: Street research, Equirus Analysis

Industry News

4

\

MSME credit growth remains robust but CIBIL warns of possible NPA stack up

Banks plan to have new benchmark model for deposit & lending rates CIBIL said, the outstanding loans to the MSMEs expanded 2.5 times in 5 yrs through 2018, while they also warned about debt build-ups leading to possible stress in the quality of assets. While the outstanding credit to MSMEs grew to Rs 25.2 lakh cr. at the end of 2018 from Rs 10.4 lakh cr. in 2013 at a CAGR of 19.6%, the consolidated NPAs in the sector increased to 9% from 7.3%. The mid and large corporate segment holds the biggest share of the overall credit at about 43% having an exposure of Rs. 47.5 lakh cr. Economic Times, April 12, 2019

At Rs 26,200 crore, NBFC-MFIs see 170% rise in securitisation deals in FY19

Amid the tight liquidity situation, NBFC-MFIs have raised close to Rs. 26,200 crore through securitization deals in the last financial year. As per ICRA report, this is a rise of 170% from Rs. 9,700 crore raised in 2017-18. According to MFIs, one of the factors behind the rise in securitisation deals was SBI’s decision to buy portfolio worth Rs. 45,000 crore from NBFCs

Business Standard, April 20, 2019

Source: Street research

Fintech startups spot a lucrative space in ‘open banking’

Fintech startups are offering a broader range of banking services beyond payments and lending enabling a deeper integration with lenders that can change the way customers access banking products. While banks are good with settlement, security and credit checks, fintech entities can help customers in ease of use through ‘open banking’. For instance, creation of a common platform for reconciliation between multiple current accounts, inventory management, payments and real-time settlements. Economic Times, April 18, 2019

RBI cuts repo rate by 25 basis points to 6%

RBI has maintained a neutral stance by cutting the repo rate by 25 bps to 6% while the market was expecting a more accommodative stance. This announcement is the second straight rate cute and is likely to have insignificant on the bourses Forbes India, April 04, 2019

Financial service companies are now betting big on data

Many players in BFSI have turned to data analytics which can precisely map demographics, individual preferences and financial tendencies that help risk projection and customer relationship management by using vast and diverse sources such as private weather bureaus, food app payment gateways, telecom bill payments and even social media records.

Economic Times, April 24, 2019

MFIs, small banks will need external capital of Rs 4,700 cr in three years

According to ICRA, Small finance banks and finance companies working as micro finance institutions will need external capital of upto to Rs 4,700 crore over the next three years to support over 25-30 per cent growth in loan books. ICRA in its outlook for the microfinance sector said that more than 90 per cent of the capital raised in FY2019 was by the MFIs with AUMs of greater than Rs 1,000 crore. Business Standard, April 24, 2019

Company News

5

Source: Street research

Zee horror show: Mutual fund investors in 6 Kotak debt plans get a scare

Read more at://economictimes.indiatimes.com/articleshow/68824178.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

The ripples from the Zee Group’s debt crisis has hit debt investors in some of the country’s leading mutual fund houses with Kotak Mutual Fund delaying full redemption in 6 of its fixed maturity plans (FMP). HDFC Mutual Fund, the country’s largest, also announced plans to roll over 1 of its FMPs that is coming up for redemption. Economic Times, Apr 12, 2019

ICRA downgrades Reliance Capital to A4 with negative implications

Rating agency ICRA has revised its ratings for Anil Ambani-led Reliance Capital and its subsidiaries from A2 to A4 with negative implications. This reflects slow pace of monetization of Reliance Capital's non-core investments (non-financial services businesses) and consequently no improvement in liquidity. In addition, the liquidity of key operating subsidiaries Reliance Commercial Finance and Reliance Home Finance also remains stretched as was earlier highlighted in rating rationale whereby the debt repayments in the next six months are higher than scheduled inflows. Business Standard, Apr 27, 2019

Banks have to mark IL&FS accounts as NPAs after default: RBI to NCLAT

Banks must reflect defaults of IL&FS Group companies as NPAs in their accounts, the RBI said in a submission to the NCLAT, seeking a modification of its previous order. NCLAT had in February prohibited banks from recognizing any IL&FS group accounts as non-performing assets without first seeking approval from the tribunal. RBI counsel Gopal Jain said allowing banks to recognize NPAs in their accounts would not impede the resolution process for the IL&FS group. The group has a total debt of Rs 94,216 crore. Economic Times, Apr 17, 2019

Bank of India to divest 25% in Star Union Dai-ichi Life for Rs 1,106 crore

State-owned lender Bank of India (BoI) is planning to sell 25.05 per cent equity stake in Star Union Dai-ichi Life Insurance for Rs 1,106 crore at Rs 170.50 floor price of each share. BoIhas 28.96 per cent equity stake in Star Union Dai-ichi Life insurance. Business Standard, Apr 06, 2019

Despite weaker Dena, BoB has minimal impact on NPAs post-merger

Read more at://economictimes.indiatimes.com/articleshow/68676737.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Bank of Baroda Monday said the amalgamation of Dena Bank and Vijaya Bank it from Monday is unlikely to bring in much changes in the financials of the combined entity, including non-performing assets. The three-way merger, the first in the country, makes BoB the third largest lender, with a combined business of Rs 15 lakh crore, of which deposits are Rs 8.75 lakh crore and advances are at Rs 6.25 lakh crore. The positive numbers of Vijaya are offsetting the minuses of Dena. Economic Times, Apr 01, 2019

5 NBFCs plan to tap overseas market for raising up to $2.5 billion

Five large non-banking finance companies (NBFCs), including Bajaj Finance and Piramal Capital Housing Finance, plan to raise up to $2.5 billion in maiden dollar-bond sales as they diversify financing base and cut reliance on local funds that had become difficult to obtain late last year. Others proposing to tap the overseas bond market in FY20 are Shriram Transport Finance, Hero Fin-Corp and Mahindra Finance Economic Times, Apr 03, 2019

BFSI Deal Activity

YTD FY2020

6

Private Equity and M&A deals

Private equity and M&A deals in April 2019 1

# of deals vis-à-vis last year1 Transaction value vis-à-vis last year1 (US$mn)

7

4554

45 44

58

6

20 1712 16

28

20

20

40

60

80

FY15 FY16 FY17 FY18 FY19 YTDFY20

PE M&A

1,9683,516

1,307

6,8684,026

182

3,705

1,928398

2,552

9,781

760

2,000

4,000

6,000

8,000

10,000

12,000

FY15 FY16 FY17 FY18 FY19 YTDFY20

PE M&A

Date Target Company Deal Type Acquirer Company Deal Size (US$ mn)

03-Apr Suryoday Small Finance Bank Ltd. PEDeutsche Investitions-und Entwicklungsgesllschaft mbH (DEG), Kotak Mahindra Life Insurance, ASK Pravi Private Equity, Gaja Advisors, HDFC Life Insurance, ResponsAbility India Business Advisors, IFC, Sarva Capital, Developing World Markets, Evolvence India, Kiran Vyapar, Lok Capital, TVS Shriram

35.7

04-Apr Resilient Innovations Pvt. Ltd (BharatPe) VC Insight Venture Management, Beenext Opportunity Fund, Sequoia Capital India 15.5

09-Apr Cashfree Payments India Pvt. Ltd. VC Y Combinator Continuity Fund, Smilegate Investments, Vellayan Subbiah 5.5

11-AprIncred Management and Technology Services Pvt. Ltd.

VCAlpha Capital Advisors, Netherlands Development Finance, V'Ocean Investments, Elevar Advisors, Moore Capital Management LP

85.6

12-Apr Finkurve Financial Services Ltd. (Finkurve) M&A Rishabh Jewellers, Nexpact Limited 6.3

12-Apr Wibmo Inc. M&A PayU Payments 70.0

23-AprCamden Town Technologies Pvt. Ltd. (Zestmoney)

VCOmidyar Network India Advisors, Ribbit Capital, PayU Payments, Quona Capital Management, Reinventure Group

20.0

30-Apr ArthImpact Finserve Pvt. Ltd. VC DMI Finance 20.0

1 PE and M&A deals covered have deal size of at least US$ 2.0mn. Excludes Payments space and related companies

Capital Market activity

Date Company Name Type of Issue Sub-sector Issue size (US$mn) Times Subscribed

25-Sep-18 Aavas Financiers IPO Housing Finance 247 0.97x

23-Aug-18 CreditAccess Grameen Ltd IPO Micro-Finance Institution 161 2.2x

30-Jul-18 HDFC Asset Management Company IPO Asset Management Company 400 83.0x

21-May-18 Indostar Capital Finance Limited IPO Diversified Financial Services 263 6.6x

4-Apr-18 ICICI Securities Limited IPO Diversified Financial Services 503 0.9x

19-Mar-18 Bandhan Bank Limited IPO Private Bank 639 14.6x

17-Nov-17 HDFC Standard Life Insurance Ltd IPO Insurance 1,242 3.8x

13-Nov-17 New India Assurance Company IPO Insurance 1,352 1.2x6-Nov-17 Reliance Nippon Life Asset Management IPO Insurance 221 57.3x

18-Oct-17 MAS Financial Services IPO Diversified 70 128.2x

3-Oct-17 General Insurance Corporation IPO Insurance 1,596 1.4x

3-Oct-17 SBI Life Insurance Company IPO Insurance 1,231 3.6x

27-Sep-17 ICICI Lombard General Insurance Company IPO Insurance 837 3.0x

10-Jul-17 AU Small Finance Bank Ltd. IPO Small Finance Bank 280 53.6x

30-Jun-17 Central Depository Services (India) Ltd. IPO Diversified Financial Services 74 119.4x

19-May-17 Housing and Urban Development Corporation Ltd. IPO NBFC 173 79.3x

8

Converted at 1 USD = 71 INR

Date Company Name Type of Issue Sub-sector Issue size (US$mn)

15-Mar-18 Lakshmi Vilas Bank Ltd QIP Regional Bank 65

30-Jul-18 HDFC Bank Ltd QIP Private Bank 391

5-Jun-18 U GRO Capital QIP Diversified Financial Services 17

5-Apr-18 Magma Fincorp Limited QIP Diversified Financial Services 72

8-Mar-18 L&T Finance Holdings Limited QIP Diversified Financial Services 143

5-Mar-18 HDFC Limited QIP Housing Finance Company 271

2-Feb-18 JM Financial Limited QIP Diversified Financial Services 92

12-Dec-17 Syndicate Bank QIP Public Sector Bank 164

11-Dec-17 Punjab National Bank QIP Public Sector Bank 715

7-Dec-17 Union Bank of India QIP Public Sector Bank 286

4-Dec-17 Bank Of Maharashtra QIP Public Sector Bank 45

30-Nov-17 Mahindra & Mahindra Financial Services QIP NBFC 151

15-Nov-17 Edelweiss Financial Services Ltd QIP Diversified 218

9-Nov-17 Muthoot Capital services QIP NBFC 24

10-Oct-17 Dena Bank QIP Public Sector Bank 58

4-Oct-17 Satin Creditcare Network Ltd. QIP Micro-Finance Institution 22

5-Sep-17 Bajaj Finance Limited QIP Diversified Financial Services 661

28-Aug-17 Vijaya Bank QIP Public Sector Bank 103

Recent QIP in BFSI space

Recent IPO in BFSI space

5,735 9,72521,029

97,760

14,872

21,12819,906

21,073

52,360

15,451

0

25,000

50,000

75,000

1,00,000

1,25,000

1,50,000

FY15 FY16 FY17 FY18 FY19

BFSI Other sectors

Total Capital Market fund raising through IPOs and QIPs with split between BFSI and other sectors (INR Crores)

IPO & QIPs over the last few years and contribution of the BFSI sector

9

Count

21%

150,120

29

66

42,102

12

36

29,631

3

40

26,862

9

41

33% 50%

65%

30,324

9

32

49%

IPO and QIP (INR Crores)

IPO & QIPs within the BFSI sector

10

14,572

53,547

11,0245,735 9,725

6,457

44,213

3,848

0

20,000

40,000

60,000

80,000

1,00,000

1,20,000

FY15 FY16 FY17 FY18 FY19

IPO QIP

5,735 9,725 21,029 97,760 14,872

Key PE and M&A deals in BFSI

11

Private equity deals

12

Date Target Deal type Buyer/ Investor Deal Value (US$mn)

03-Apr-19 Suryoday Small Finance Bank Ltd. PEDeutsche Investitions-und Entwicklungsgesllschaft mbH (DEG), Kotak Mahindra Life Insurance, and others

35.7

15-Nov-18 Kotak Mahindra Bank Ltd. Public Equity GIC Pvt. Ltd. 149.1

19-May-18 AU Small Finance Bank Ltd. Public Equity Temasek Holdings Pvt. Ltd. 147.3

2-May-18 Equitas Holdings Ltd. Public Equity Public 6.0

27-Mar-18 Punjab and Sind Bank Ltd. Public Equity The Government of India 120.4

17-Feb-18 The Catholic Syrian Bank Ltd. PE Fairfax India Holdings Corporation 187.0

10-Nov-17 Axis Bank PEAmerican Funds Distributors, Inc., Bain Capital LLC, Life Insurance Corp. of India, The Capital Group Companies Inc.

1,784.1

8-Nov-17 Ujjivan Financial Services Ltd. PE Creador LLC 33.2

29-Aug-17 RBL Bank Ltd. PE Norges Bank Investment Management 30.9

07-Jul-17 RBL Bank Ltd. Public Equity ABG Capital, CDC Group, HDFC Life, ICICI Lombard, Multiples, Steadview 258.8

14-Apr-17 Capital Small Finance Bank Ltd. PE ICICI Prudential Life Insurance, HDFC Standard Life Insurance, Pi Ventures Investment Trust 10.0

02-Mar-17Fincare Business Services Ltd.(part of Fincare platform)

PEKotak Mahindra Old Mutual Life Insurance, SIDBI Venture Capital, Leapfrog, Tata Opportunities Fund, TA Associates, Edelweiss Tokio Life Insurance, ECap Equities, Jhelum Investment Fund, Tata Capital, Religare Health Insurance

74.9


16-Mar-19 PNB Metlife India Insurance Company Ltd. PE Oman India Joint Investment Fund 26.6

13-Mar-19 Acko Technology and Services Pvt. Ltd. VCSAIF Partners India, Accel India, Techpro Ventures, Amazon.com NV Investment Holdings, RPS Investment Fund, Intact Ventures, Binny Bansal

65.0

01-Mar-19 SBI Life Insurance Company Ltd. PE Carlyle Asia Partners, CPP Investment Board 817.6

26-Feb-19 Max Bupa Health Insurance Company Ltd. PE True North 75.4

16-Jan-19 Turtlemint PE Nexus Ventures, Blume Ventures, Sequoia Capital India Advisors 25.0

28-Nov-18 Turtlemint PE Sequoia Capital 6.0

26-Sep-18 SBI General Insurance Co. Ltd. PE PI Opportunities Fund I, Axis Asset Management Company Ltd. 66.3

29-Aug-18 Aditya Birla ARC Ltd. PE Varde Partners Inc. 14.0

25-Jul-18 Go Digit Infoworks Services Pvt. Ltd. PE Fairfax India Holdings Corporation 45.0

31-May-18 IndiaFirst Life Insurance Co. Ltd. PE Warburg Pincus India Pvt. Ltd. 104.7

16-Oct-17 Mahindra Insurance Brokers Ltd. PE Leapfrog Financial Inclusion Fund 10.0

Insurance and ARCs2

Banks and SFBs1

1 Small Finance Banks2 Asset Restructuring Companies


30-Apr-19 ArthImpact Finserve Pvt. Ltd. VC DMI Finance Pvt. Ltd. 20.0

29-Mar-19 PNB Housing Finance Ltd. Public General Atlantic Pvt. Ltd., Varde Partners Inc. 267.7

19-Mar-19 Sewa Grih Rin Ltd. VCHDFC Holdings, Omidyar Network India, HDFC Life Insurance Co, Women World Banking Capital Partners, Oikocredit International

9.7

12-Feb-19 Svasti Microfinance Pvt. Ltd. VC Nordic Microfinance Initiative AS, Adar Cyrus Poonawalla 4.8

02-Feb-19 Aadhar Housing Finance Ltd. PE Blackstone Advisors India Pvt. Ltd. 378.0

04-Dec-18 Fusion Microfinance Pvt. Ltd. VC Creation Investments Capital Management LLC, Warburg Pincus India Pvt. Ltd. 74.5

15-Oct-18 Kadaieshwar Homefin Pvt. Ltd. VC IIFL India Private Equity Fund 13.6

10-Sep-18 Satya Microcapital Ltd. PE MF Initiative for Asia Debt Fund, Japan ASEAN Women Empowerment Fund 4.7

05-Sep-18 Ummeed Housing Finance Pvt. Ltd. VC Lok Capital Growth Fund, LGT Impact Ventures 9.2

04-Aug-18 Vivriti Capital PE Creation Investments, Capital Management 29.2

11-Jul-18 Sambandh Finserve Pvt. Ltd. PE Bopa Pte. Ltd. 2.5

2-Jul-18 Village Financial Services Ltd. PE Capital First Ltd. 2.2

11-Jun-18 Aye Finance Pvt. Ltd. VC SAIF Partners India Ltd., CapitalG, LGT Impact Ventures 21.7

8-May-18 PNB Housing Finance Ltd. Public General Atlantic Pvt. Ltd. 33.1

4-May-18 Indiabulls Ventures Ltd. PublicSteadview Capital Master Fund, Valiant Capital Partners LP, Clermont Group, Toscafund Asset Management LLP, TIMF LP, ABG Capital, JS Capital Management

308.7

08-Feb-18 Fusion Microfinance Pvt. Ltd. VC Oikocredit International, Creation Investments Capital, GAWA Capital Partners 12.4

06-Feb-18 Aviom India Housing Finance Pvt. Ltd. VC Insitor Fund 2.3

02-Feb-18 Repco Home Finance Ltd. Public Apax Partners 6.1

13-Jan-18 Housing Development Finance Corporation Ltd. PublicGIC Pvt. Ltd., Azim Premji Foundation, PI Opportunities, KKR India Advisors Pvt. Ltd., Carmignac Gestion S.A., OMERS Administration Corporation

1,743.0

28-Nov-17 PNB Housing Finance Ltd. PE General Atlantic Pvt. Ltd. 51.9

30-Nov-17 Arohan Financial Services Pvt. Ltd. PE Maj Invest Financial Inclusion 3.4

24-Nov-17 Satin Creditcare Network Ltd. PE NMI Frontier Fund, IndusInd Bank Ltd. 22.4

30-Oct-17 Grameen Koota Financial Services Pvt. Ltd. PE Creation Investments Social Ventures 16.9

20-Sep-17 Save Solutions Pvt. Ltd. PE AGRIF Fund 6.0

11-Sep-17 Janalakshmi Financial Services Pvt. Ltd. PE Tree Line Asia, QRG Enterprises, Morgan Stanley PE, TPG Asia Buyout, Bajaj Allianz, 161.0


13

MFIs1 and HFCs2

1 Micro Finance Companies2 Housing Finance Companies


14

NBFCs1


25-Apr-19 L and T Infra Debt Fund Ltd. Public Equity Apis Growth Fund II LP 110.0

29-Mar-19 Visage Holdings and Finance Pvt. Ltd. VC Patamar Capital, Michael and Susan Dell Foundation, Gaja Capital, GAWA Capital Partners 14.5

26-Mar-19 Northern ARC Capital Ltd. PE IIFL Asset Management, Standard Chartered PE, Affirma Capital, IIFL Special Opportunities Fund 131.2

25-Mar-19 Finova Capital Pvt. Ltd. VC Sequoia Capital India, Faering Capital India 14.7

16-Mar-19 Avanse Financial Services Ltd. PE Warburg Pincus LLC NA

13-Mar-19 Vivriti Capital Pvt. Ltd. VC Creation Investments Social Ventures Fund 15.7

05-Mar-19 ECL Finance Ltd. PE Quebec Deposit and Investment Fund 253.0

3-Feb-19 Annapurna Finance Pvt. Ltd. PEOikocredit International, Bamboo Finance SA, Oman India Joint Investment Fund, Asian Development Bank

29.6

14-Jan-19 DMI Finance Pvt. Ltd. PE N.I.S. New Investment Solutions Liechtenstein Ltd. 230.0

06-Dec-18 Wheelsemi Pvt. Ltd. VC Elevar Equity, Faering Capital 14.0

29-Nov-18 Kogta Financial India Ltd. PE IIFL Seed Ventures Fund, Morgan Stanley Private Equity Asia 21.8

01-Nov-18 Veritas Finance Pvt. Ltd. PE CDC Group Plc, Norwest Venture Partners, Panemangalore Surendra Pai 27.2

23-Oct-18 Ess Kay Fincorp Ltd. PE Norwest Venture Partners, Evolvence India Fund, TPG Growth 42.0

04-Sep-18 JM Financial Ltd. PE SAIF Partners India Ltd. 9.1

01-Sep-18 Belstar Investment and Finance Pvt. Ltd. PE Muthoot Finance Ltd., Maj Invest Financial Inclusion Fund 28.0

25-Jul-18 BlackSoil Capital Pvt. Ltd. VC Shashi Kiran Janardhan Shetty 16.7

28-Jul-18 Five Star Business Finance Ltd. PEMorgan Stanley Private Equity Asia, Sequoia Capital India Ltd., Norwest Venture Partners LP, TPG Asia SF Pte. Ltd.

100.0

18-Jun-18 Digikredit Finance Pvt. Ltd. VC ACCION Technical Advisors India, Capital First Ltd. 7.0

24-May-18 U GRO Capital PE Chhatisgarh Invest., Asteya Invest., Indiabulls Ventures., Acorn Invest 28.3

15-Apr-18 RattanIndia Finance Pvt. Ltd. PE Lone Star Global Acquisitions Ltd. 199.3

06-Apr-18 Magma Fincorp Ltd. Public Equity NA 92.40

24-Jan-18 NeoGrowth Credit Pvt. Ltd. VC Aspada Fund, Accion Frontier Inclusion Fund LP, Leapfrog Investments Ltd. 47.0

3-Jan-18 Ess Kay Fincorp Ltd. PE Norwest Venture Partners, Baring PE, Evolvence India Advisors Inc. 32.0

31-Dec-17 U GRO Capital PE IndGrowth Capital, NewQuest Asia Fund, ADV Partners 68.1

12-Oct-17 Thirumeni Finance Pvt. Ltd. PE Michael and Susan Dell Foundation 3.0

9-Oct-17 Satya Microcapital Ltd. PE Dia Vikas Capital Pvt. Ltd. 2.4

22-Sep-17 Shiksha Financial Services India Pvt. Ltd. PE Michael and Susan Dell Foundation 2.5

2-Sep-17 Finova Capital Pvt. Ltd. PE Sequoia Capital India Ltd. 2.5

9-Aug-17 Five Star Business Finance Ltd. PE Morgan Stanley PE Asia, Matrix Partners, Sequoia, Norwest Venture Partners 52.2

29-Jun-17 Aditya Birla Capital Ltd. PE PI Opportunities 109.0

1 Non-Banking Finance Companies


15

Financial Technologies


23-Apr-19 Camden Town Technologies Pvt. Ltd. (Zestmoney.in) VCOmidyar Network India Advisors, Ribbit Capital, PayU Payments, Quona Capital Management, Reinventure Group

20.0

11-Apr-19Incred Management and Technology Services Pvt. Ltd.

VCAlpha Capital Advisors, Netherlands Development Finance, V'Ocean Investments, ElevarAdvisors, Moore Capital Management

85.6

09-Apr-19 Cashfree Payments India Pvt. Ltd. VC Y Combinator Continuity Fund, Smilegate Investments, Vellayan Subbiah 5.5

04-Apr-19 Resilient Innovations Pvt. Ltd (BharatPe) VC Insight Venture Management, Beenext Opportunity Fund, Sequoia Capital India Advisors 15.5

13-Mar-19 Mswipe Technologies Pvt. Ltd. VC DSG Partners Asia, Falcon Edge Capital, B Capital Group Partners, Epiq Capital 31.3

08-Mar-19 Arevuk Advisory Services Pvt. Ltd. PE Eight Roads Ventures India 4.5

23-Jan-19 Nextbillion Technology Pvt. Ltd. (Groww.in) VCY Combinator, Sequoia Capital India Advisors, Propel Venture Partners, Kauffman Fellows Program

6.2

23-Jan-19 MoneyOnClick PE Kalaari Capital Advisors, Orios Venture Advisors, 3ONE4 Capital Advisors LLP 2.3

24-Dec-18 Scripbox Advisors Pvt. Ltd. VCAccel India Venture Fund, Omidyar Network India Advisors, NLI Strategic Venture Investments Fund, Accel India, Nagaraja H. S., Balakrishna Adiga

20.9

22-Nov-18 InstaRem Pte. Ltd. PEVertex Ventures US Fund, The SBI FMO Fund, Beijing Century GSR Ventures Management Co. Ltd., MDI Ventures, Beacon Venture Capital, Rocket Internet SE

45.0

30-Oct-18 Mobikwik PE Sequoia Capital, GMO Venture Parnters 3.3

29-Oct-18 Finzoom Investment Advisors Pvt. Ltd. PE Steadview Capital Master Fund Ltd. 30.0

23-Oct-18 Defmacro Software Pvt. Ltd. PE Composite Capital Management HK Ltd. 54.4

22-Oct-18 Cube Consumer Services Pvt. Ltd. PE Beenext Pte. Ltd, 500 Startups, Asuka Holdings Inc 2.0

27-Aug-18 Datasigns Technologies Pvt. Ltd. (Shubh Loans) VC SRI Capital Partners LLC, Beenext Pte. Ltd., Pravega Ventures, Saama Capital Management Ltd. 4.2

18-May-18 Cointribe Technologies Pvt. Ltd. VC Sabre Capital India Investment Advisors Pvt. Ltd., Puneet Yadu Dalmia 10.0

21-Mar-18 BASIX Sub-K iTransactions Ltd. VC ACCION Technical Advisors, Norwegian Microfinance Initiative 5.4

14-Mar-18 Goddard Technical Solutions Pvt. Ltd. VCMatrix India, Bhavish Aggarwal, Ankit Bhati, Binny Bansal, Kunal Naresh Shah, Manish Manubhai Patel

17.2

12-Feb-18 Lendingkart Technologies Pvt. Ltd. VCFullerton Financial Holdings, Bertelsmann Corporate Services, India Quotient Fund, Mayfield Fund, Saama Capital, Sistema Asia Fund

87.8

13-Oct-17 ETechAces Marketing and Consulting (Policybazaar) PEInfo Edge, Tiger Global Management, Temasek,, True North Managers, IDG Ventures, Wellington Management, PremjiInvest

79.0

10-Aug-17 Zen Lefin Pvt. Ltd. VC Sequoia Capital, Creation Investments, Saif Partners, Ribbit Capital 45.7

28-June-17 Bestdealfinance.com Pvt. Ltd. VC Kalaari Capital Partners 3.0

31-Jul-17 One Mobikwik Systems Pvt. Ltd. VC Bajaj Finance Ltd. 35.0

1-Jul-17 Innoviti Payment Solutions Pvt. Ltd. PE Catamaran Investments Pvt. Ltd., Bessemer Venture Partners, The SBI FMO Fund 18.6

29-Jun-17 Paradime Technologies Pvt. Ltd. VC Sequoia Capital India Ltd., KAE Capital Fund 3.2


16

Exchanges


15-Feb-18 National Stock Exchange of India Ltd. PE IIFL Special Opportunities Fund 100.0

22-Nov-16 National Stock Exchange of India Ltd. PE Legatum Ventures 30.0

23-Jun-16 NCD Exchange Ltd. PE NA 8.1

31-Mar-16 National Stock Exchange of India Ltd. PEChrysCapital Investment Advisors India Pvt. Ltd., Life Insurance Corp. of India, Ward Ferry Management Ltd., ICICI Lombard General Insurance Company Ltd.

194.3

Others


24-Oct-18 Indiabulls Ventures Ltd. PE ABG Capital, Clermont Group, Steadview Capital Master Fund Ltd. 209.5

21-Jun-18 Drip Capital Inc. VCAccel India Management Co. Pvt. Ltd., Y Combinator Continuity Fund I LP, Wing Venture Partners LP, Sequoia Capital India Advisors Pvt. Ltd.

15.0

20-Jun-18 APAC Financial Services Pvt. Ltd. PE Multiples Alternate Asset Management Pvt. Ltd. 36.7

19-Jun-18 IIFL Wealth Management Ltd. PEGeneral Atlantic Pvt. Ltd., Ward Ferry Management Ltd., Amansa Capital Pte. Ltd., Steadview Capital Management LLC, HDFC Standard Life Insurance Co. Ltd.

109.2

4-Apr-18 Sanctum Wealth Management Pvt. Ltd. PE Multiples Alternate Asset Management Pvt. Ltd. 11.2

6-Apr-18 SMC Global Securities Ltd. PE Capital18 Media Advisors Pvt. Ltd. 2.4

19-Feb-18 Religare Enterprises Ltd. PE

Bay Capital Partners, 21st Century Management, Bhagat Industrial Corporation, Chanakya Corporate Services, John Tinson And Company, M.B. Finmart, Milky Investment And Trading Company, Puran Associates, Quick Realtors, Vindhyachal Hydro Power, Mysore Petro Chemicals

142.0

14-Dec-17 Religare Enterprises Ltd. PE Bay Capital Partners Ltd. ~2.0

16-Aug-17 Reliance Nippon Life AMC PE IIFL Special Opportunities Fund 60.8

4-Aug-17 Karvy Computershare Ltd. PE General Atlantic 240

31-Dec-16 Aavishkaar-Intellecap Holdings PE Shell Foundation, Triodos Microfinance Fund 25.0

M&A deals

17

BanksDeals across segment in BFSI space1

1 Includes only financial services aggregators and fintech lending companies

Date Type Target Buyer/ Investor M&A type Deal Value (US$ mn)

12-Apr-19 Diversified Finkurve Financial Services Ltd. Rishabh Jewellers, Nexpact Limited Domestic 6.3

12-Apr-19 Fintech Wibmo Inc. PayU Payments Pvt. Ltd. Outbound 70.0

29-Mar-19 Diversified JM Financial Asset Reconstruction Company Ltd. JM Financial Ltd. Domestic 5.2

28-Mar-19 NBFC Stater N. V. Infosys Ltd. Outbound 144.0

27-Mar-19 HFC Mahindra Rural Housing Finance Ltd. Mahindra and Mahindra Financial Services Ltd. Domestic 41.5

20-Mar-19 Fintech Transerv Pvt. Ltd. Indiabulls Consumer Finance Ltd. Domestic 6.7

08-Mar-19 NBFC Upasana Finance Ltd. Dhevanathan Yadav Domestic 2.0

04-Mar-19 NBFC Kisan Rural Finance Ltd. ICICI Bank Ltd. Domestic 2.5

21-Feb-19 Diversified DHFL Pramerica Asset Managers Pvt. Ltd. Prudential Financial Inc. Inbound NA

3-Feb-19 NBFC India Infoline Finance Ltd., CV Finance Business IndoStar Capital Finance Ltd. Domestic NA

30-Jan-19 PE IDFC Alternatives Ltd. Investcorp Private Equity Inbound NA

21-Jan-19 Diversified IDBI Bank Ltd Life Insurance Corporation of India Domestic 4,400.00

09-Jan-19 Fintech Evolusolve Technologies (Wealthtrust) Alpha Fintech Pvt. Ltd. Domestic NA

07-Jan-19 HFC Gruh Finance Ltd. Bandhan Bank Ltd. Domestic 3,001.00

20-Dec-18 Fintech LivQuik Technology India Pvt. Ltd. Future Enterprises Ltd. Domestic 2.7

18-Dec-18 Diversified IDFC First Bank IDFC Bank Ltd Domestic 1,460.0

27-Nov-18 Fintech Hxaxe Holdings Ltd. Majesco Ltd. Outbound 13.227-Nov-18 Fintech Atom Technologies Ltd. (63 Moons) NTT Data Corporation Inbound 9.220-Nov-18 Diversified The Clearing Corporation of India Ltd. HDFC Bank Ltd. Domestic 17.314-Nov-18 Insurance Royal Sundaram General Insurance Co. Ltd. Ageas SA/NV Inbound 209.816-Oct-18 Diversified Wealth Advisors India Pvt. Ltd. IIFL Wealth Management Ltd. Domestic 34.415-Sep-18 Microfinance Ant Creditex Technologies Pvt. Ltd. E-City Ventures Domestic 3.004-Sep-18 Diversified Trans Financial Resources Ltd. Rishi Parikh, Siddharth Hans Domestic 2.021-Aug-18 Fintech Thumbworks Technologies Pvt. Ltd. (walnut) Capfloat Financial Services Pvt. Ltd. Domestic 30.002-Jul-18 NBFC Indian School Finance Company Pvt. Ltd. Manappuram Finance Ltd. Domestic 30.918-Jul-18 MFI China Houze Group OCL India Ltd. Outbound 90.02-Jul-18 Diversified Indian School Finance Company Pvt. Ltd. Manappuram Finance Ltd. Domestic 30.92-Jun-18 Diversified Capital India Finance Ltd. Dharampal Satyapal Ltd., Sudhir Power Ltd., RJ Corp Ltd. Domestic 11.518-May-18 Diversified Tourism Finance Corporation of India Ltd. Redkite Capital Pvt. Ltd., SSG Capital Partners Domestic 48.52-Apr-18 Diversified Centrumdirect Ltd. Inbound Inbound 184.4

23-Mar-18 NBFC SV Creditline Pvt. Ltd. ICICI Prudential Life Insurance Company Ltd. Domestic NA

13-Jan-18 NBFC Capital First IDFC Bank Ltd. Domestic 1,460.0

31-Dec-17 NBFC U GRO Capital Poshika Advisory Services LLP Domestic 5.9

16-Dec-17 Diversified Fullerton Securities and Wealth Advisors Ltd. BlueBlood Ventures Ltd. Domestic 35.1

50

100

150

200

250

300

350

400

450

500

550

Oct-14 Dec-14 Mar-15May-15Aug-15 Nov-15 Jan-16 Apr-16 Jul-16 Sep-16 Dec-16 Feb-17 May-17Aug-17 Oct-17 Jan-18 Apr-18 Jun-18 Sep-18 Nov-18 Feb-19 May-19

Indices movement vis-à-vis Sensex

Micro-Finance: Best performing BFSI segment since October 2014 and has outperformed other segments as well as broader markets

Indices movement vis-a-vis Sensex

HFC

18

Companies considered for various index segments are as under:

For indexes, the company classification is same as mentioned in the subsequent slides covering trading comparable

Public Banks

Bank Nifty

SFB

NBFC

IFCs

Diversified

Sensex

MFI

Private Banks

Source: Bloomberg

Nifty

Public Sector Banks

Trading Comparables

19

CompanyNetworth FY18 A

Mcap (US$ mn) (US$ mn) PAT (US$ mn) P/E P/B ROE % ROA %

State Bank of India 39,545 30,863 -922 NM 1.3x -3.0% -0.2%

Punjab National Bank 5,369 5,785 -1,730 NM 0.9x -29.9% -1.7%

Bank of Baroda 5,248 8,403 -511 NM 0.6x -6.1% -0.4%

IDBI Bank 3,852 2,987 -1,160 NM 1.3x -38.8% -2.8%

Bank of India 3,759 5,177 -855 NM 0.7x -16.5% -1.0%

Canara Bank 2,622 5,197 -576 NM 0.5x -11.1% -0.7%

Allahabad Bank 2,267 1,446 -658 NM 1.6x -45.5% -1.9%

Corp Bank 2,195 1,528 -571 NM 1.4x -37.4% -2.0%

Union Bank of India 1,791 3,535 -735 NM 0.5x -20.8% -1.1%

Oriental Bank of Commerce 1,759 1,660 -827 NM 1.1x -49.8% -2.7%

Indian Overseas Bank 1,616 1,859 -887 NM 0.9x -47.7% -2.8%

Central Bank of India 1,596 2,533 -719 NM 0.6x -28.4% -1.7%

Indian Bank 1,583 2,598 177 8.9x 0.6x 6.8% 0.5%

UCO Bank 1,314 2,107 -625 NM 0.6x -29.7% -2.3%

Syndicate Bank 1,268 2,334 -438 NM 0.5x -18.8% -1.0%

United Bank of India 1,128 1,222 -205 NM 0.9x -16.8% -1.1%

Andhra Bank 1,006 1,524 -481 NM 0.7x -31.5% -1.5%

Bank of Maharashtra 614 1,401 -161 NM 0.4x -11.5% -0.8%

Jammu & Kashmir Bank 426 868 29 14.9x 0.5x 3.3% 0.2%

Punjab & Sind Bank 211 871 -105 NM 0.2x -12.0% -0.7%

Total / Average 11.9x 0.8x -22.3% -1.3%

Median 11.9x 0.6x -19.8% -1.1%

Source: Bloomberg, Company filings, Equirus analysisNote: 1 USD = 71 INR

Private Sector Banks

Trading Comparables

20

Source: Bloomberg, Company filings, Equirus analysis Note: 1 USD = 71 INR



HDFC Bank 88,355 15,436 2,614 33.8x 5.7x 16.9% 1.7%

Kotak Mahindra Bank 37,511 7,111 866 43.3x 5.3x 12.2% 1.9%

ICICI Bank 34,827 15,582 1,086 32.1x 2.2x 7.0% 0.8%

Axis Bank 26,570 8,936 39 NM 3.0x 0.4% 0.0%

IndusInd Bank 12,204 3,358 508 24.0x 3.6x 15.1% 1.7%

Bandhan Bank 9,316 1,321 190 49.2x 7.1x 14.3% 3.1%

Yes Bank 4,829 3,628 595 8.1x 1.3x 16.4% 1.4%

RBL Bank 3,938 941 89 44.0x 4.2x 9.5% 1.1%

IDFC First Bank 2,815 2,504 167 16.8x 1.1x 6.7% 0.8%

Federal Bank 2,736 1,729 128 21.4x 1.6x 7.4% 0.7%

City Union Bank 2,025 586 83 24.3x 3.5x 14.2% 1.5%

DCB Bank 965 395 35 27.9x 2.4x 8.7% 0.8%

Karur Vysya Bank 875 882 49 18.0x 1.0x 5.5% 0.5%

Karnataka Bank 597 762 46 13.0x 0.8x 6.0% 0.5%

South India Bank 345 738 47 7.3x 0.5x 6.4% 0.4%

Lakshmi Vilas Bank 319 328 -82 NM 1.0x -25.1% -1.5%

Total / Average 25.9x 2.8x 7.6% 1.0%

Median 24.2x 2.3x 8.1% 0.8%

NBFCs

Source: Bloomberg, Company filings, Equirus analysisNote: 1 USD = 71 INR

Trading Comparables

21



Bajaj Finance 23,906 2,330 377 63.5x 10.3x 16.2% 3.1%

L&T Finance Holdings 3,306 1,913 206 16.0x 1.7x 10.8% 1.7%

M&M Financial Services 3,282 1,397 141 23.3x 2.3x 10.1% 1.6%

Shriram Transport 3,256 1,771 219 14.9x 1.8x 12.4% 1.8%

Muthoot Finance 3,226 1,093 242 13.3x 3.0x 22.2% 5.7%

Cholamandalam Invest. and Fin Co 2,834 727 137 20.7x 3.9x 18.9% 2.6%

Sundaram Finance 2,206 806 108 20.4x 2.7x 13.4% 2.2%

Manappuram Finance 1,438 537 99 14.6x 2.7x 18.4% 5.0%

Shriram City Union Finance 1,347 810 97 13.9x 1.7x 12.0% 2.3%

Magma Fincorp 482 327 32 14.8x 1.5x 9.9% 1.8%

Indostar Capital 455 301 32 14.4x 1.5x 10.5% 3.1%

MAS Financial Services 405 103 15 27.2x 3.9x 14.5% 3.8%

Muthoot Capital Services Ltd. 169 55 8 22.3x 3.0x 13.6% 2.8%

Total / Average 21.5x 3.1x 14.1% 2.9%

Median 16.0x 2.7x 13.4% 2.6%

Small Finance Banks



AU Small Finance Bank 2,688 321 41 65.3x 8.4x 12.8% 1.6%

Equitas Holdings 620 321 4 NM 1.9x 1.4% 0.2%

Ujjivan Financial 534 248 1 NM 2.2x 0.4% 0.1%

Total / Average 65.3x 4.2x 4.9% 0.6%

Median 65.3x 2.2x 1.4% 0.2%

Trading Comparables

Diversified Financials - NBFC/WM/Cap. Mkt.

Infrastructure Finance Institutions

CompanyTotal Debt FY18 A

Mcap (US$ mn) (US$ mn) IEA (US$ mn) P/E P/B ROA % Leverage

Edelweiss Financial 2,074 5,948 5,683 17.2x 2.2x 2.1% 6.3x

IIFL Holdings 1,819 4,644 5,667 20.7x 2.6x 1.6% 6.5x

Motilal Oswal 1,405 835 1,192 18.4x 4.4x 6.4% 2.6x

JM Financial 961 2,067 2,834 10.8x 1.2x 3.1% 2.5x

Reliance Capital 383 6,535 11,773 2.2x 0.2x 1.5% 2.7x

Total / Average 13.9x 2.1x 2.9% 4.1x

Median 17.2x 2.2x 2.1% 2.7x



Power Finance Corporation 3,988 5,662 823 4.8x 0.7x 14.5% 2.1%

Rural Electrification Corporation 3,750 5,052 660 5.7x 0.7x 13.1% 2.2%

IDFC Ltd 841 1,595 148 5.7x 0.5x 9.2% 0.8%

SREI Infra 165 687 56 2.9x 0.2x 8.2% 1.1%

PTC India 141 330 3 40.4x 0.4x 1.1% 0.2%

Tourism Finance Corp of India 127 88 11 12.0x 1.4x 12.0% 3.8%

Total / Average 11.9x 0.7x 9.7% 1.7%

Median 5.7x 0.6x 10.6% 1.6%

22



Housing Finance Companies

Micro Finance Companies

Trading Comparables



HDFC Ltd 47,868 8,648 1,195 40.1x 5.5x 13.8% 2.1%

IndiaBulls Housing Finance 4,088 1,891 539 7.6x 2.2x 28.5% 2.9%

LIC Housing 3,414 1,787 280 12.2x 1.9x 15.7% 1.2%

Gruh Finance 3,098 194 51 60.7x 15.9x 26.2% 2.3%

PNB Housing 1,815 888 117 15.5x 2.0x 13.2% 1.4%

Canfin Homes 581 190 43 13.7x 3.1x 22.4% 2.0%

Dewan Housing 486 1,239 165 2.9x 0.4x 13.3% 1.1%

Repco Home 353 187 29 12.2x 1.9x 15.5% 2.1%

GIC Housing 182 139 26 7.0x 1.3x 18.6% 1.6%

Reliance Home Finance 121 272 25 4.8x 0.4x 9.4% 1.2%

Total / Average 17.7x 3.5x 17.7% 1.8%

Median 12.2x 2.0x 15.6% 1.8%



Bharat Financial 1,748 422 64 27.2x 4.1x 15.2% 4.1%

Credit Access Grameen 910 290 18 NM 3.1x 6.1% 2.4%

Satin Creditcare 202 153 0 NM 1.3x -0.3% -0.1%

Total / Average 27.2x 2.9x 7.0% 2.1%

27.2x 3.1x 6.1% 2.4%

23

Equirus Group

BFSI Credentials

24

Vast transaction experience in the BFSI space (1/2)

25

Kogta Financial (India) Ltd.

PE funding by IIFL & Term Loan

Financing

March 2017 & October 2016

Equitas Holdings Ltd.

Block transactions for sale of stake

by Caspian Impact Investment

April 2017

Niyogin Fintech Ltd.

Preferential allotment of

INR 2,350mn

May 2017

MAS Financial Services Ltd.

Direct Assignment of

Asset Based Portfolio

June 2017, December & August 2016

Altico Capital India Pvt. Ltd.

Fund raise &Term Loan

Raising

Sept & June 2017

Manapuram Finance Ltd.

Sale of CV portfolio to

Bank of India

July 2017

Bank of Maharashtra Ltd.

QIP of INR 3,135mn

December 2017

Lead Manager to the Issue

Chokhani Securities Ltd. (CSL)

Advisor for Acquisition & Open Offer

of CSL plus Fund raising in CSL

December 2017

Syndicate Bank Ltd.

QIP of INR 11,508mn

Lead Manager to the Issue

December 2017

Arohan Financial Services Pvt. Ltd.

Secondary stake sale of

Caspian’s in the Company

July 2017

Ujjivan Financial Services Ltd.

Block deal transaction for sale of

stake by Caspian Impact Investment

January 2018

CapFloat Financial Services Pvt. Ltd.

Term loan from L& T Finance

March 2018

U Gro Capital (erstwhile Chokhani

Securities Pvt. Ltd.)

Preferential Issue

July 2018

DCB Bank Ltd.

Advisors for stake acquisition in

Annapurna Microfinance

March 2016

Acquisition of M3 Global Finance &

subsequent fund raising in

M3 Global Finance

February 2017 & August 2016

ESAF Microfinance &

Investments Pvt. Ltd.

Portfolio Sale of Micro finance to

Bank of India

March 2017

Wealth Advisors (India) Pvt. Ltd.

October 2018

Advisor for 100% acquisition by IIFL

Wealth Management Ltd.

Electronica Finance Pvt. Ltd.

Sale of SME Portfolio

March 2018 & March 2017

Kogta Financial (India) Ltd.

November 2018

Private Equity Investment by Morgan

Stanley Private Equity Asia and IIFL

Seed Ventures

Fullteron India Ltd.

Direct Assignment of Loan

against Property Portfolio to

State Bank of India

December 2015

Vast transaction experience in the BFSI space (2/2)

26

NMCE

Equity Placement to

Bajaj Holdings and Investment Ltd.

October 2010

L&T Finance Ltd.

Acquisition of DBS Cholamandalam

Asset Management Ltd.

September 2009

Way2Wealth

Acquisition of

Techno Shares & Stocks

October 2011

L&T Finance Holdings Ltd.

Co-Bookrunning Lead Manager

for IPO

August 2011

L&T Finance Holdings Ltd.

Acquisition of Family Credit

from Societe Generale

December 2012

Magma Fincorp Ltd.


Vehicle Loan Portfolio

June, April & February 2015

Reliance Capital Ltd.

Sole Advisor for Direct

Assignment of Loan against

Property Portfolio

June 2015

Prizm Payment Services Pvt. Ltd.

Investment by

Sequoia Capital

April 2013

DCB Bank Ltd.

Follow on Preferential allotment to

Tano Capital, TVS Capital &

Wolfensohn

November and March 2012

Karvy Financial Services Ltd.

Term Loan Financing

September, July & March 2015

Sharekhan

Equity Placement to Barings,

CVCI, IDFC & Others

February 2008

Suryoday Microfinance Pvt. Ltd.

Sole Advisor for

Debt Financing

June 2015

City Venture Capital International

Secondary Sale in Sharekhan

to Barings

February 2008

L&T Finance Ltd.

Lead Brokers for Issuance of Non-

Convertible Debentures

August 2009

Au Financiers (India) Ltd.


MSME Portfolio

November 2015

http://www.aufin.in/index.php

BFSI Companies under coverage

BFSI: Research Coverage

27

Company NameLatest

Coverage Date Rating Target Price CMP

23-Apr-19 Long 700 653

3-May-19 Add 385 309

30-Apr-19 Add 1,495 1287

18-May-19 Add 210 195

20-Apr-19 Long 260 199

14-May-19 Long 170 129

21-Apr-19 Add 2,500 2302

07-May-19 Long 460 384

23-May-19 Long 1950 1436

Company NameLatest

Coverage Date Rating Target Price CMP

17-May-19 Reduce 75 78

02-May-19 Long 180 118

16-May-19 Add 140 127

30-May-19 Long 145 107

19-Sep-18 Long 160 135

09-May-19 Add 1,150 1019

12-May-19 Add 16 14

30-May-19 Add 375 313

28-Apr-19 Add 260 148

Note: CMP updated as of 15th May 2019

28

A focused Lifecycle Banking approach

Unlisted

High Growth Maturity

Rev

en

ue

Siz

e

August, 2009 : Lead brokers for issuance of Non-convertible Debentures

September, 2009 : Acquisition of DBS Cholamandalam Asset Management

October, 2012 : Acquisition of Family Credit from Societe Generale.

Listed

PE Syndication

Mergers & Acquisitions● Domestic● Cross Border

Capital Markets

● Fund Raising

● Buy-back; delisting

Institutional Equities

● Research

● Trading

Transactions for L&T Finance Holdings/ Subsidiaries

Acquisition of DBS Cholamandalam Asset Management Ltd.

Multiple structured debt transactions financed by L&T Finance/

L&T Infra Finance

Lead brokers for the 1st NCD issue by L&T Finance

Transactions for L&T Finance Holdings/Subsidiaries

Lead Manager for INR 15,250mn IPO

Acquisition of Family Credit from Societe Generale

Walking the talk with L&T Finance

July, 2011 : Co-book running lead manager for proposed IPO

One of the most respected investment

bankers in the country; has led multiple

marquee transactions

Key recent transactions include IPO of

Shankara Building, L&T Finance, TD Power,

QIP of Minda Industries, Gammon Infra,

Poddar Developers and PE transactions for

BIBA, Dalmia Cements, Sharekhan etc.

Highly experienced BFSI focused team

29

Top management attention throughout the transaction supported by seasoned execution team

Nirav has over 13 years of experience in

the IBanking, Capital Markets and Banking.

Prior to Equirus, he has been associated

with Centrum Capital, Karvy & HDFC Bank.

He is CFA from ICFAI University and

Commerce graduate from N. M. College,

Mumbai

Nirav Shah

Director

Donald has over 23 years of experience in

Investment banking. Prior to Equirus he

has been associated with HDFC Bank as

Head of Equity Capital Markets, Investment

Banking division. He had held key positions

at IIFL, Kotak, CLSA and JM Financial.

Donald is an alumnus of IIM, Ahmedabad

Donald D'Souza

Managing Director

Rohan has 8+ years of experience in sell-

side equity research and Banking. He has

prior work experience with Yes Bank, ICICI

bank and quant Capital. He is alumni of

XLRI, Jamshedpur and has completed his

Engineering from DA-IICT

Rohan Mandora

Research Analyst

Dinesh has over 6 yrs experience in

Corporate and Investment Banking. He has

prior work experience with IDBI Capital and

Exim Bank. He is an MBA from

Bharathidasan Institute of Management

(BIM),Trichy and a B.E. from PSG College of

Technology, Coimbatore

Dinesh Rathinam

Senior Associate

Ajay Garg

Managing Director

Aniket has over 3 years of experience in

investment banking experience of working

in BFSI, Infrastructure and consumer

sectors. He is Commerce graduate from HL

Institute of Commerce, Ahmedabad and

Associate Chartered Accountant

Aniket Beyani

Senior Associate

Dishant has over 1.5 years of prior work

experience in Financial Due Diligence with

KPMG. He is a Chartered Accountant, has

cleared Level 3 of CFA examination and is

an MBA from NMIMS Mumbai.

Dishant Dave

Associate

Contact Equirus

Disclaimer:

This presentation has been prepared by Equirus Capital Pvt. Ltd. (Equirus) for restricted distribution. No representation or warranty, either expressed or implied, is made norresponsibility of any kind is accepted by Equirus Group company, its directors or employees either as to the accuracy or completeness of any information stated in this document.Neither Equirus nor any of its affiliates and/or their directors, officers, employees shall in any way be responsible or liable for any losses or damages whatsoever which any person maysuffer or incur as a result of acting or otherwise relying upon anything stated or inferred in or omitted from this presentation.

Opinions and projections found in this presentation reflect our opinion as of the presentation date and are subject to change without notice. This presentation is neither intended norshould be considered as an offer or solicitation, or as the basis for any contract, for purchase of any security, loan or other financial instrument.

30

Mumbai

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BangaloreWorkden, MNR Pride,#14, 3rd floor, Domlur Service Road, Domlur Layout,

Bangalore - 560071

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Documents

BFSI Sector Trends - InvestmentGuruIndiavid.investmentguruindia.com/report/2019/June/BFSI Tracker...and at other centres does not exceed Rs 4.5mn and Rs 3mn, respectively, will be