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Religare Enterprises Limited
June 2012
Business Mix- Split by Revenue
1
Religare Enterprises Limited Business overview
Business overview
• SME Lending
• Mutual Funds
• Retail Equity and commodity broking
• Health Insurance
• Life Insurance
• Wealth Management
• Alternate Investments
• Capital Markets
Portfolio companies business lines
• Religare Enterprises Limited is a Financial Services Holding Company, with operating subsidiaries based in India with broader emerging markets focus
• Promoted by the Singh Family, the erstwhile owners of Ranbaxy Laboratories, India’s largest generic pharma company
• Over 1.1 Mn clients serviced from over 2,500 locations with over 5,500 employees in India and abroad
• Net worth of USD 672 Mn; Current market capitalization of ca. USD 1.06 Bn
• Revenue of USD 590 Mn in FY12, with PBT of USD -17 Mn
6%8%
3%
64% 18%
Lending
Broking
Life Insurance
Capital Markets
Others
2
Our Evolution Religare has evolved from being an equity broking firm to a diversified financial services player
Religare Securities Retail equity broking
Religare Finvest Lending
Religare Securities Retail equity broking
Religare Commodities Retail commodity broking
Religare Finvest Lending
Religare Securities Retail equity broking
Religare AMC Asset Management
AEGON Religare Life Insurance
Religare Macquarie Wealth Management
Religare Commodities Retail commodity broking
Religare Finvest Lending
Religare Securities Retail equity broking
Religare GAM Alternate Investments
Religare Capital Markets Capital Markets
Religare AMC Asset Management
AEGON Religare Life Insurance
Religare Macquarie Wealth Management
Religare Commodities Retail commodity broking
Religare Finvest Lending
Religare Securities Retail equity broking
Religare Health Health Insurance
Religare GAM Alternate Investments
Religare Capital Markets Capital Markets
Religare AMC Asset Management
AEGON Religare Life Insurance
Religare Macquarie Wealth Management
Religare Commodities Retail commodity broking
Religare Finvest Lending
Religare Securities Retail equity broking
1994 2001 2004 2008 2010 2012 2007
ESOP Scheme:
Management holds
20% of equity
PE Investments in RFL
Jacob Ballas: USD 40 Mn
Avigo: USD 30 Mn
Religare IPO
Oversubscribed
159 times
3
Religare Enterprises Limited Corporate Structure and governance
Religare Enterprises Limited Board
Group Executive
Enterprise Risk
Mgmt, Finance
& Controls
M&A Strategy & IR HR Legal &
Compliance
Technology &
Shared Service
Religare Finvest Ltd.
Lending
Religare Securities Ltd.
Broking
Religare Asset Management Co.
Ltd.
Asset Management
Religare Health Insurance Co. Ltd.
Health Insurance
India Subsidiaries
India Joint Ventures
AEGON Religare Life Insurance Co. Ltd.
Life Insurance
Religare Macquarie Wealth Management
Ltd.
Wealth Mgmt.
Religare Global Asset Management
Inc.
Global Asset Management
Religare Capital Markets Ltd.
Capital Markets
International • Operating subsidiaries have their own
Boards and Management Committees
• Subsidiaries charged a largely variable fee for support services
• Religare Enterprises Limited (REL), the Holding Company is listed on both the BSE and the NSE in India
• REL ‘s professional management reports to the Board of Directors; The Promoters have no board presence
• In addition to capital, REL provides Corporate function support to operating subsidiaries
4
Section I : Strategic highlights
Section II : Key operating subsidiaries overview
Table of contents
5
Religare Enterprises Limited Key investment highlights
India’s long term growth potential presents tremendous opportunity for financial services 1
Capital flows from developed markets to emerging markets provides significant opportunities for financial services business 2
Robust platform built to capture these opportunities – amongst the fastest growing financial services businesses based out of India with critical mass in products and distribution • Amongst the largest SME focussed lending businesses in India, with a book size of ca. USD 2.5 Bn • Top 5 player in retail equities and top 3 player in retail commodity broking in India with a footprint of over 2,500 locations • 14th largest Asset Management company in India, with an AuM of ca. USD 2 Bn • 19th largest Life Insurance company, and amongst only 5 licensed stand-alone health insurers • Over USD 12 Bn in AuM from affiliates in alternate investment management globally
3
Best-in-class processes, technology and infrastructure to capture synergies across business lines 5
Unique combination of strong aligned professional management and committed long-term capital providers 4
6
India’s long term growth presents enormous opportunities for financial services Penetration levels of most financial products well below developed markets and other emerging market peers
1
India’s GDP is projected to grow rapidly in the long run
Massive increase in the ‘middle class’ Increased demand for financial services given
low penetration
5,699
>3x
2020E 2030E 2012
3,182
1,852
India GDP USD Mn at 2012 prices
Globals (>1000)
Strivers (500-1000)
Seekers (200-500)
Aspirers (90-200)
Deprived (< 90)
Globals (>1000)
Strivers (500-1000)
Seekers (200-500)
Aspirers (90-200)
Deprived (< 90)
20
05
E 2
02
5F
Household income brackets
thousands, INR (Year -2000)
Number of households
million
Aggregate disposable income
trillion, INR (Year -2000)
10.9
2.4
1.2
91.3
101.1
49.9
93.1
94.9
33.1
9.5
30.6
20.9
21.7
13.7
2.6
5.4
11.4
3.1
1.6
2.0
India middle class to swell to from 13 million households in 2005 to 128 million households by 2025 corresponding to 41% population
163740
S Korea Malaysia India
39
16
India Japan S Korea
313
32
S Korea India Japan
Mutual Fund - AuM / GDP %
55
168176
India Singapore S Korea
Insurance - Sum assured / GDP %
Brokerage – Share of stocks in household assets (%)
Lending – Loan Book/GDP (%)
Source: McKinsey, CIA World Factbook 2010, World Bank Indicators, Credit Suisse Global Wealth Databook 2010, Swiss Re, ICI Factbook 2010
Capital flows from developed markets to emerging markets are expected to quadruple in two decades Significant opportunities for financial services business with deep understanding of emerging markets
7
2
Emerging markets GDP over 50% of world GDP
61% 51% 41%
39% 49% 59%
2010E 2020E 2030E
Emerging Markets Developed Markets
Emerging markets equity market capitalisation to dominate
Provide platform for
facilitating the flow of
capital from developed to
the emerging markets
Significant revenue
potential in emerging
markets over next two
decades
• US$14tn of equity
issuance
• US$420bn revenue
opportunity from
primary issuance and
secondary market
commissions
69% 56% 45%
31% 44% 55%
2010E 2020E 2030E
Emerging Markets Developed Markets
Institutional investors to own substantial emerging
markets assets
Developed Markets Emerging Markets
REL Emerging markets Presence
1.3 3.7
10.6
2010E 2020E 2030E
(US$ tn)
Emerging markets will outweigh the developed markets in the next two decades
Developed market investments in emerging markets are likely to quadruple
Significant opportunities for financial services
Source: United Nations, International Monetary Fund, Goldman Sachs
8
Robust platform in place to capture both India and Emerging Market opportunities Multi-product manufacturing capabilities and distribution
3
Religare Finvest • One of India’s largest NBFC’s focused on
Small and Medium Enterprises (SMEs) • Loan book of c. USD 2.5 bn • Y-o-y growth of 46% • High quality portfolio
Religare Securities & Religare Commodities One of India’s largest retail and
commodities broking platform Distribution across 579 cities and 2500+
locations Over 900,000 clients; over 485,000 daily
trades
Asset Management
Lending
Retail Broking
Insurance Capital
markets
Life JV with AEGON; capital protection with
12% guaranteed return 19th largest life insurance co., 2x volumes
in past one year Health Potential access to 40 Mn customers Leverage Group’s healthcare assets
Religare AMC India’s 14th largest asset management
company; AUM of USD 2 Bn 3x increase in AUM since the acquisition
of Lotus Asset Management in 2008 Focus on increasing profitability by
winning offshore mandates
Religare Capital Markets Limited 302 member strong team and presence
across 10 countries Established research coverage; 200+
companies tracked in India and internationally
Alternative
Religare Global Asset Management Over USD 12 Bn of international AuM in
alternate assets Distribution across India, Japan,
Singapore, HK, and US
Wealth
Religare Macquarie Open architecture platform provides
competitive advantage Robust client base with significant growth
in AUM of 12% CQGR Focus on high quality annuity based
earnings
India
Emerging Markets
9
Ind
ia J
Vs
G
rou
p E
xe
cu
tive
s
Ex
ec
uti
ve
Dir
ec
tors
Sunil Godhwani
CMD
Joined Religare in 2001
Established the vision for the group and
provides strategic direction
Under his leadership, Religare transformed
from a standalone broking business to an
integrated financial services group
Leads and manages strategic acquisitions
and expansion, manages relationship with
new JV partners
Shachindra Nath
Group CEO
Joined Religare in 2000
Core member of the team responsible for the
transformation of Religare into India’s leading
financial services firm
Responsible for the formulation of corporate
strategy and management of day-to-day
activities of the group
Over 16 years of experience in the financial
services industry
Anil Saxena
Group CFO
Joined Religare in 2001
Core member of the team responsible for the
transformation of Religare into India’s leading financial
services firm
Responsible for the supervision of the overall finance
function & execution of all strategic matters
Over 20 years of experience in the financial services
industry
Inte
rna
tio
na
l
Ind
ia S
ub
s
Saurabh Nanavati
CEO, Religare AMC A
sset
Man
ag
em
en
t
Anuj Gulati
CEO, Religare Health Insurance
Healt
h I
nsu
ran
ce
Rajiv Jamkhedkar CEO, AEGON Religare Life Insurance
Over 20 years experience
Prior Experience:
Lif
e I
nsu
ran
ce
Robert Flynn
CEO, Religare Capital
Markets, Asia
Over 19 years experience
Prior Experience:
Investm
en
t
Ban
kin
g
Paresh Thakker
Head, Religare Global Asset
Management
Over 19 years experience
Prior Experience:
Glo
bal
Asset
Man
ag
em
en
t
Str
ate
gy &
IR
Over 18 years
experience
Prior Experience:
Basab Mitra
COO & Head of Strategy,
Religare
HR
Kamlesh Dangi
Chief People Officer,
Religare
Over 18 years
experience
Prior Experience:
Len
din
g
Kavi Arora
CEO, Religare Finvest
Wealt
h
Man
ag
em
en
t
Rohit Bhuta
CEO, Religare Macquarie Wealth
Management
Over 20 years experience
Prior Experience:
Genera
l C
ounsel
Over 23 years
experience
Prior Experience:
Raghuram Raju
General Counsel,
Religare
Strong aligned professional management and committed long-term capital providers Religare Enterprises is part of the Singh brothers business group and is run by a completely independent professional management
Senior management entitled to ca. 20% stake on fully diluted basis through ESOPs vesting over 3 years
4
RFL RAMC RHIL RGAM RCML RSL
10
Businesses are supported by a common platform around key functional requirements
Key awards and accolades for superior customer service
IT infrastructure deploys best in class technology and applications
Best-in-class processes, technology and infrastructure Platform is poised to capitalize on the India opportunity
5
Infra-facilities
Human resources
Information technology
Finance & Accounts
In-house 500+ resource shared service setup to support various transactional and processing requirements for the business
• 5,500 square feet of data center
• 1000 Servers hosted
• 1500 Network devices
• 1000 Mbps internet bandwidth
Shared Service Capability Matrix
RCML awarded the coveted Starmine award for the "Best Brokerage Research House” in 2011
RMPW adjusted as “Most Exciting Wealth Management Model” globally, by Private Bankers
International in 2009
RAMC runner up in the NDTV Profit Mutual Fund Awards 2010 in the Category - Equity: Tax Plannin
Strategy & Investor relations
11
Section I : Strategic highlights
Section II : Key operating subsidiaries overview
Table of contents
12
Business overview
SME Working Capital loans
SME Loan Against Property
SME CE/ CV Finance
Capital Market Lending
Key Service Offerings
Business Mix- Split by Book Size
One of India’s leading NBFC’s focused on SMEs with a loan book of c. US$2.56 bn as of March
31, 2012
Significant headroom for growth within the current distribution network; currently consists of
35 locations covering all major SME clusters in India
Current average loan disbursements run-rate of c.US$126 mn per month(2)
Successfully raised c.US$ 169 mn via a public bond offering in India in September 2011
13%
55%
22% 10%
SME CE/ CV Finance
SME Loan Against Property
SME Working Capital
Capital Market Lending
Total book size of US$1.95 bn.
Religare Finvest Limited One of India’s largest Non Banking Financial Company, focusing on the SME segment
13
Portfolio quality in control
Strong secular growth in markets especially
in the SME segment
Overall loan book higher by 35% Y-o-Y
Growth capital providers focused on SME
SME assets expected to grow at a CAGR
of 16% over the next five years
SME to contribute 22% of India’s GDP by
2012 up from 17% in 2009
Robust performance exhibited so far
Loan book growing a CQGR of 9%;
current loan book size c. US$2.3 bn
Y-o-Y client growth of 26%
Strong performance across credit and
operating benchmarks
Secured asset finance portfolio (86%)
Net NPA of 0.51% as at March 31, 2012
Reduction in opex/ANR(3) in asset finance
book highlights economies of scale as
business grows
Significant head-room for operating
leverage through tested Management
strength, processes and systems
Key highlights
Borrowing programme supported by superior ratings
Significant NIM expansion Overall loan book higher by 35% Y0Y
Rating Type Rating Rating Agency
Amount
(` mn)
Short term A1+ ICRA 50,000
Long Term Bank Loans AA- ICRA 73,500
Short term Bank Loans A1+ ICRA 6,000
Long Term AA- ICRA 25,000
Preference Shares A+ ICRA 1,250
Tier 2 Subordinate Debt rated ‘FITCH AA-(ind)’ *`4,500 mn.]
Additionally obtained Long Term rating of ‘CARE AA-’ [`15,000 mn.]
Listed NCDs rated ‘*ICRA+ AA- (stable)’ / ‘CARE AA-’ (outstanding amount: `7.54 bn.)
5.37%5.02%5.00%
4.65%4.30%
2.28%2.23%
3.10%3.21%
3.60%
Q4FY12 Q3FY12 Q2FY12 Q1FY12 Q4FY11
Opex/ ANR NIM
0.20.2
0.4
31-Mar-12
2.0
1.6
0.9
30-Sep-11
0.3 0.2
0.3
30-Jun-11
1.1
0.3
1.9
31-Dec-11
0.4
1.8
0.8
0.5 0.4
0.7
0.3
0.1
31-Mar-11
1.5
0.4
0.7
0.3 0.1
SME CE/CV Finance*
SME Loan Against Property SME Working Capital
Capital Market Lending
0.85%0.69%
0.27%0.21%
0.10% 0.51%0.45%
0.07%0.01%0.02%
31-Mar-11 31-Mar-12 30-Jun-11 30-Sep-11 31-Dec-11
Net NPAs Gross NPAs
US$ Bn.
Change in policy. NPA recognition at 90 days vs. 180 days as of Sept 30
Religare Finvest Limited Scalable Platform Delivering Superior Portfolio Quality
14
Business overview
Equity Broking
Commodity Broking
Currency Broking
Key Service Offerings
Business Mix- Split by Revenue
Comprehensive suite of broking services catering to retail customers across equities, derivatives, and commodities
Amongst India’s largest equity broking businesses with 1.9% market share with a client base of over 814,000
One of India’s leading commodity broking with 2.5% market share with a client base of over 157,000
The broking business also provides the distribution platform for mutual funds, insurance and other financial products
68%
6%
26%
Equity
Commodities
Currency
Total Brokerage of US$ 54.6 Mn.
Religare Securities Limited One of India’s largest owned Retail Distribution Networks
15
• Equity brokerage yield improved
consequent to re-pricing of customers;
blended market-share in equities
increased from 1.7% to 1.9% QOQ
• Increasing penetration in Commodities
broking – total client base at ~161,000
• Actions taken to ensure structural
reduction of over 15% in cost base
through reducing self branches and
focusing on franchisee business
• Religare honoured with two awards at
the Bloomberg-UTV Financial
Leadership Awards 2012 – ‘Best
Commodity Broker’ and ’Best Investor
Education & Category Enhancement
Currency Broker’
Key Highlights Market-wide turnover mix skewed towards F&O Brokerage yield moving in a narrow band
Pan India footprint through branches and franchisee Market share
12
33
18
5
2
Q2 FY12
39
16
37
8
7
18
3
Q4 FY11
3
5
9
33
Q1 FY12
6
18
10
Q4 FY12
36
10
17
6
Q3 FY12
36
Futures
Cash Equities
Commodities
Options US$ Bn.
3.66
3.11
3.433.543.55
1.611.601.531.65
Q4 FY11 Q2 FY12 Q4 FY12 Q1 FY12
1.50
Q3 FY12
Commodity Equity
1.71.92.22.1
2.52.63.0
3.33.9
Q2 FY12 Q1 FY12 Q4 FY11 Q4 FY12
1.9
Q3 FY12
Equity Commodity
396 369 327 245 240
31-Mar-11
1,589
30-Sep-11
1,566
30-Jun-11
1,821
31-Mar-12
1,613
1,822 1,958
1,581 1,577
1,940
31-Dec-11
1,962
Own Branches Franchisees
Religare Securities Limited Broking Affected by Current Softness but Structural Story Intact
16
Business overview
Potential access to the established customer base of the partners (Union Bank of India and Corporation Bank having a customer base of over 40 Mn, have subscribed to 5% stake each in the company)
Potential for significant synergies given promoters focus in the healthcare sector
Robust growth drivers coupled with increasing awareness towards health insurance
Strategic Highlights
Performance of standalone health insurers
Originally established as a wholly owned subsidiary of REL; Currently Union Bank of India and Corporation Bank, leading PSU banks, have subscribed to 5% stake each in the company
Current status of rollout
IRDA has accepted “requisition for registration application form IRDA/R2, R3” of RHIL
Plans to administer claims in-house for better control and service
Product Development for retail and group health plans and adoption of technology platform from CSC underway
Substantial market share of 13% captured by standalone companies in short time
Source: Industry Reports
PSU Private Standalone
No. of companies 4 13 3
No. of years since in existence 38 11 4
Market Share- FY11 58% 29% 13%
PSU- Public Sector bank, one in which, the Government of India holds a majority stake.
Religare Health Insurance Limited Positioned to capture significant Group Synergies
17
Business overview
Domestic
Equity Funds
Debt Funds
Exchange traded Funds
Funds of Funds
PMS
Off-shore funds
Key Service Offerings
Business Mix- Split by Revenue
Commenced operations in 2008 through acquisition of Lotus India Asset Management with an
AUM of c.US$800mn
Assets under management have since grown more than three-fold to reach US$2.6bn (March
2012)
Distribution network of 55 branches and 15,294 distributors
Religare Mutual Fund is ranked 14th in terms of AUM as of December 2011
Launched retail fund in Japan through a Japanese asset manager for the Indian mid- and small-
cap strategy in Feb 2011; fund size (including additional subscriptions) stood at US $ 172mn as
of 31-Dec-2011
8%
87%
5% Domestic
PMS
Offshore
Religare Asset Management Company Amongst the fastest growing Asset Managers
18
Religare Asset Management Company Achieved break-even within three years of operations under the Religare banner
Religare AMC has attained profitability in Q4FY12, and has achieved
breakeven for the full year FY12, within three years of operations under
the Religare banner
Maintained AuM in the face of adverse market conditions and changes
in regulations
Continue to focus on high-margin, differentiated offerings
Marked improvements anticipated as industry settles post regulatory
changes
Long term outlook remains strong – AUM to GDP ratio of only 8% in
India compared to 114% in the US and 84% in the UK
Opportunity to market India funds through global platform giving access
to higher fee pools
Mandated to advise US$530 Mn investment in India for a Japanese
offshore fund
Key Highlights Industry AUM at year ago levels after peaking in Q1 Fy12
AUM Composition largely stable
121124130135
127
Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12
Avg.Market AUM
31-Dec-11
6%
94%
30-Jun-11
95%
5%
30-Sep-10
6%
31-Mar-12
6% 6%
31-Mar-11
94% 94% 94%
Avg. Equity AUM Avg. Debt AUM
2.0 2.1 2.0 2.1 1.9
US$ Bn) Avg . AUM
US$ Bn.
19
Aegon Religare Life Insurance One of India’s fastest growing Life Insurance businesses
Business overview
Term Plans
Endowments
Unit Linked Plans
Pensions
Key Service Offerings
Commenced operations in 2008, amongst the fastest growing private sector life insurance companies in India
JV with AEGON (26%), BCCL (30%) with balance stake (44%) held by REL
Robust growth in customer acquisition backed by strong capital
Total business premium has witnessed a YoY growth of 18% in Q3FY12
Pioneer in deploying the online channel to drive sales – launched the first online term and unit linked insurance policy
Significant growth opportunity with Premium to GDP ratio at 5% as compared to c.9% for developed markets
Low cost operating model, side-stepping issues faced by first wave of entrants
REL’s investment fully protected with minimum 12% IRR assured by AEGON, upside remains with REL
Robust distribution platform; not dependent on any specific channel for distribution
20
Aegon Religare Life Insurance Strong growth in operating income with a lower, more sustainable cost base
• Multi-channel distribution in place
including a high quality agency, direct
to consumer, e-sales, corporate agents
and brokers
• Recognized in the market for its
pioneering efforts in online distribution
– in particular focus on protection
through the i-term product
• Significant investments in a robust
technology architecture to ensure a
differentiated consumer experience as
well as aiding channel productivity
• Well recognized brand popular for its
campaign focusing on prevalent under-
insurance and the need to have higher
levels of protection
Key Highlights Rapidly increasing customer base Balanced distribution mix
Quarterly premium income Share Capital
161 190
Q3 FY12 Q4 FY11
213
Q4 FY12 Q2 FY12
+9%
175 151
Q1 FY12
(No..of customers (‘000s)
33%31%
22%
9%
6%
Corporate Agents & Brokers
Direct Channel
Religare
E-Sales
Agency Distribution
3.4
12.8 1.1
19.8
Q1 FY12
0.9
10.7
33.9
5.3
Q4 FY11
6.4
19.1
Q2 FY12
8.5
0.3
9.6 10.2
Q4 FY12
33.1
12.4
19.1
1.6
Q3 FY12
18.2
7.7
First year premium
Renewal
Single
23.6
149.1
172.7
31-Mar-11
13.6
181.8
195.5
30-Sep-11
195.5
0.0 10.9
172.7
30-Jun-11
181.8 206.4
31-Mar-12 31-Dec-11
195.5
9.1
195.5
Fresh Capital
Existing Capital
US$ Mn. US$ Mn.
21
Religare Macquarie Private Wealth Management Open architecture platform targeting growing affluence
Business overview
Mutual Funds
Portfolio Management Services
Alternative Investments
Offshore Investment Services
Equities and Commodities
Derivatives
Capital Market Lending
Key Service Offerings
50-50 JV with Macquarie to provide wealth management services on an open architecture
platform
Niche positioning to capture customer segment; target customers include HNI’s with investible
surplus of between US$0.25 – 1mn
HNI population is expected to grow at a CAGR of 11% over the next 4-5 years
Total AUM has grown at a CQGR of 4% over the last 5 quarters ending March 31, 2012
Provides innovative and personalised wealth management solutions to HNIs through a holistic
and proactive advisory led approach
Over 4,400 HNI clients serviced by a team of 100 relationship managers
22
Size and scale aligned to market
opportunity – structural reduction of
over 25% in cost base between Q1FY12
and Q4FY12
Designed and executed various
principal-protected structured
products for HNI customers
Continue to be seen as trusted advisors
to clients, enabled by our proprietary
‘Protection, Growth and Aspirations’
(PGA) asset allocation methodology
Key Highlights Growing Client Base
AuM per Relationship Manager Award and Recognition
4,485
31-Mar-11
4,191
+3%
31-Mar-12
4,662
31-Dec-11
4,492
30-Sep-11
4,631
30-Jun-11
No. of Clients
4.94.4
4.1
3.1
2.4
31-Mar-12 31-Dec-11 30-Sep-11 30-Jun-11 31-Mar-11
AUM per RM US$ Mn.
0.470.440.440.43
0.39
+21%
31-Mar-12 31-Dec-11 30-Sep-11 30-Jun-11 31-Mar-11
Total AUM(USD Bn)
AUM up 21% versus year ago levels
RMPW adjusted as “Most Exciting Wealth Management Model” globally, by Private Bankers International in
2009
Religare Macquarie Private Wealth Management Strong growth in operating income with a lower, more sustainable cost base
23
Business overview
Institutional Equities
Investment Banking
M&A Advisory
Key Service Offerings
Asia focussed cash equities business headquartered in Singapore and Mumbai, with investment banking capabilities in the region
Equities
Global team size of 160 with full-services presence across equities sales, trading and research in India and focus markets in Asia and a sales & distribution presence in key global money centres
Empanelled with over 500 institutional investors
Investment Banking
India’s only global investment banking platform with 44-person strong global investment banking team focused on M&A and capital raising
Religare Capital Markets Limited Asia focussed Institutional Equities and Investment Banking
24
Religare Capital Markets Limited Creating a sustainable platform for global equities
Sharpened focus on profitability and greater sustainability:
• Significant traction in the ECM business in the last quarter of FY12
• India focused restructuring measures taken to maintain sustainable cost structures (Q1FY13)
Institutional Equities
• India research covers 163 stocks as of 31-Mar-2012, representing 75% of BSE market capitalization
• 277 stocks under active coverage globally
IBD and ECM:
Advised on several transactions during the quarter, notably
• Closed the first QIP in India in FY2012, Dewan Housing, which was also the first QIP with issue size > Rs. 1 bn. since August’11
• Sole book runner on the USD 51 mn. block trade for Swiber Holdings on SGX
• Acted as senior book runner for US$ 19 mn. Kreuz block trade (closed April 2012)
• Distributed the $100 mn. SGX IPO for Global Premium Hotels; brought in 4 out of the 6 anchor orders (closed in April 2012)
Key Highlights No. of client empanelment's
Business mix
442
31-Mar-11
469
30-Jun-11
401
31-Mar-12 30-Sep-11
512
31-Dec-11
548
No. of Institutional Empanelments*
* Previous quarters’ data restated following consolidation of client lists
61%
20%
20%
Headcount as of 31-Mar-2012: 225
Investment Banking
Institutional Equities
Support
25
Religare Global Asset Management Building a multi-boutique Alternate Asset Manager
Business overview
Multi-boutique asset management model focussed on acquiring best of breed players
(affiliates) in alternate assets
Affiliates screening criteria include
Highest institutional quality investment talent
Established track record of superior performance
Attractive investment strategies
Desire to grow and develop the franchise
RGAM acquisition philosophy
Acquire 51-75% stake
Align interest of management team with RGAM
Aid in succession planning by creating a structure to incentivize the broader team
Adhere to valuation discipline
Support development of affiliate firms by providing
Distribution support in Asia
Access to capital, local knowledge and deal flow in key emerging markets
Industry experience
26
Religare Global Asset Management Strategy Rollout Well Underway Through Acquisition Of Northgate And Landmark
Ownership
Firm Overview
70%
Investment Thesis
AUM: ~US$3.8bn
Products:
Primary Fund of Funds
Developed markets (primarily USA) based PE & VC Funds
Emerging markets PE and VC Funds
Presence: Offices in U.S. (Bay Area) and U.K. (London)
Track Record: Successfully raised funds during recent market
downturn
High-growth Alternatives platform with proven access to top-
quality PE and VC funds and investments
Unique capabilities in PE/VC in developed and emerging markets
Differentiated strategies with superior performance that attract
and retain sophisticated clients
Investment oriented and committed team
Loyal global clients and consultant relationships
~55%
AUM: ~US$ 9.1bn
Products:
Secondary Private Equity funds
Secondary Real Estate Funds
Presence: Headquartered in Simsbury, Connecticut, and has
offices in Boston, Massachusetts and London
Track Record: In a survey by Private Equity International, chosen
as “Best Secondaries Firm in North America” for 2009, 2010 and
2011
Pioneer in secondary private equity and real estate segment
Robust, defensible business with high growth opportunities
Diverse and growing global client relationships
Highly experienced team with aligned incentives
Strong track record and performance
27
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