DOCSLIB.ORG

Piramal Enterprises Limited

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Piramal Enterprises Limited Draft Letter of Offer Dated November 7, 2017 For Eligible Equity Shareholders only PIRAMAL ENTERPRISES LIMITED Piramal Enterprises Limited was originally incorporated as Indian Schering Limited on April 26, 1947 under the provisions of the Companies Act, 1913. Subsequently, the name of our Company was changed to Nicholas Laboratories India Limited with effect from September 27, 1979 and to Nicholas Piramal India Limited with effect from December 2, 1992. Subsequently, the name of our Company was changed to Piramal Healthcare Limited with effect from May 13, 2008 and to Piramal Enterprises Limited with effect from July 31, 2012. Registered Office: Piramal Ananta, Agastya Corporate Park, Opposite Fire Brigade, Kamani Junction, LBS Marg, Kurla (West), Mumbai – 400 070 Contact Person: Leonard D’Souza, Company Secretary and Compliance Officer Tel: (91 22) 3046 6666 | Fax: (91 22) 2490 2363 E-mail: [email protected] | Website: www.piramal.com | Corporate Identity Number: L24110MH1947PLC005719 PROMOTER OF OUR COMPANY: AJAY PIRAMAL FOR PRIVATE CIRCULATION TO THE ELIGIBLE EQUITY SHAREHOLDERS OF PIRAMAL ENTERPRISES LIMITED (THE “COMPANY” OR THE “ISSUER”) ONLY ISSUE OF UP TO [●] EQUITY SHARES OF FACE VALUE OF ₹ 2 EACH OF OUR COMPANY (THE “EQUITY SHARES”) FOR CASH AT A PRICE OF ₹ 2,380 PER EQUITY SHARE (INCLUDING A PREMIUM OF ₹ 2,378 PER EQUITY SHARE) NOT EXCEEDING ₹ 20,000 MILLION ON A RIGHTS BASIS TO THE ELIGIBLE EQUITY SHAREHOLDERS OF OUR COMPANY IN THE RATIO OF [●] EQUITY SHARES FOR EVERY [●] FULLY PAID-UP EQUITY SHARES HELD BY THE ELIGIBLE EQUITY SHAREHOLDERS ON THE RECORD DATE, THAT IS ON [●], 2017 (THE “ISSUE”). FOR FURTHER DETAILS, SEE “TERMS OF THE ISSUE” BEGINNING ON PAGE 380. GENERAL RISKS Investment in equity and equity related securities involve a degree of risk and investors should not invest any funds in the Issue unless they can afford to take the risk of losing their investment. Investors are advised to read the risk factors carefully before taking an investment decision in the Issue. For taking an investment decision, investors must rely on their own examination of our Company and the Issue including the risks involved. The securities being offered in the Issue have not been recommended or approved by the Securities and Exchange Board of India (“SEBI”) nor does SEBI guarantee the accuracy or adequacy of this Draft Letter of Offer. Investors are advised to refer to “Risk Factors” beginning on page 11 before making an investment in this Issue. ISSUER’S ABSOLUTE RESPONSIBILITY Our Company, having made all reasonable inquiries, accepts responsibility for and confirms that this Draft Letter of Offer contains all information with regard to our Company and the Issue, which is material in the context of the Issue, that the information contained in this Draft Letter of Offer is true and correct in all material aspects and is not misleading in any material respect, that the opinions and intentions expressed herein are honestly held and that there are no other facts, the omission of which makes this Draft Letter of Offer as a whole or any such information or the expression of any such opinions or intentions misleading in any material respect. LISTING The existing Equity Shares of our Company are listed on BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”) (collectively, the “Stock Exchanges”). Our Company has received “in-principle” approvals from BSE and NSE for listing the Equity Shares to be allotted pursuant to the Issue through their letters dated [●] and [●], respectively. For the purposes of the Issue, the Designated Stock Exchange is the [●]. LEAD MANAGER REGISTRAR TO THE ISSUE Kotak Mahindra Capital Company Limited Link Intime India Private Limited 1st Floor, 27 BKC, Plot No. 27 G Block C-101, 247 Park Bandra Kurla Complex, Bandra (East) L B S Marg , Vikhroli (West) Mumbai 400 051 Mumbai 400 083 Tel: (91 22) 4336 0000 Tel: (91 22) 4918 6200 Fax: (91 22) 6713 2447 Fax: (91 22) 4918 6195 E-mail: [email protected] E-mail: [email protected] Investor grievance e-mail: [email protected] Investor grievance e-mail: [email protected] Contact person: Ganesh Rane Contact person: Sumeet Deshpande Website: www.investmentbank.kotak.com Website: www.linkintime.co.in SEBI registration number: INM000008704 SEBI registration number: INR000004058 ISSUE PROGRAMME ISSUE OPENS ON LAST DATE FOR REQUEST FOR SPLIT ISSUE CLOSES ON APPLICATION FORMS [●] [●] [●] TABLE OF CONTENTS SECTION I: GENERAL ........................................................................................................................................................... 1 DEFINITIONS AND ABBREVIATIONS ........................................................................................................................... 1 NOTICE TO INVESTORS ................................................................................................................................................... 7 PRESENTATION OF FINANCIAL AND OTHER INFORMATION ............................................................................ 9 FORWARD-LOOKING STATEMENTS ......................................................................................................................... 10 SECTION II: RISK FACTORS ............................................................................................................................................. 11 SECTION III: INTRODUCTION .......................................................................................................................................... 34 THE ISSUE .......................................................................................................................................................................... 34 SUMMARY FINANCIAL INFORMATION .................................................................................................................... 35 GENERAL INFORMATION ............................................................................................................................................. 48 CAPITAL STRUCTURE .................................................................................................................................................... 52 OBJECTS OF THE ISSUE ................................................................................................................................................. 61 STATEMENT OF TAX BENEFITS .................................................................................................................................. 65 SECTION IV: ABOUT OUR COMPANY ............................................................................................................................ 78 BUSINESS ............................................................................................................................................................................ 78 OUR MANAGEMENT ....................................................................................................................................................... 95 SECTION V: FINANCIAL INFORMATION .................................................................................................................... 102 FINANCIAL STATEMENTS........................................................................................................................................... 102 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS ................................................................................................................................................................... 318 WORKING RESULTS...................................................................................................................................................... 336 MATERIAL DEVELOPMENTS ..................................................................................................................................... 337 ACCOUNTING RATIOS AND CAPITALISATION STATEMENT .......................................................................... 338 STOCK MARKET DATA FOR EQUITY SHARES OF OUR COMPANY ............................................................... 340 SECTION VI: INDUSTRY OVERVIEW ........................................................................................................................... 342 SECTION VII: LEGAL AND OTHER INFORMATION ................................................................................................. 360 OUTSTANDING LITIGATION AND DEFAULTS ...................................................................................................... 360 GOVERNMENT AND OTHER APPROVALS .............................................................................................................. 367 OTHER REGULATORY AND STATUTORY DISCLOSURES ................................................................................. 368 SECTION VIII: ISSUE INFORMATION .......................................................................................................................... 380 TERMS OF THE ISSUE ................................................................................................................................................... 380 SECTION IX: OTHER INFORMATION ........................................................................................................................... 407 MATERIAL CONTRACTS AND DOCUMENTS FOR INSPECTION .....................................................................
Load more

Recommended publications
  • Abbott Moves Into the Emerging Market Fast Lane
    May 21, 2010 Abbott moves into the emerging market fast lane Evaluate Vantage Once again the Indian pharma deal rumour mill is in need of maintenance. As frenzied takeover speculation surrounding Piramal Healthcare increased this week, both Pfizer and Sanofi-Aventis were supposedly about to strike, Abbott Laboratories instead snuck up on the blind side today and snapped up Piramal’s branded generics business for $3.72bn. Following Abbott’s product licensing deal with another Indian player, Zydus Cadila, earlier this month (No let up in race to capture emerging market growth, May 11, 2010), the US healthcare giant is emerging just as fast as these target markets into a major competitor to the likes of GlaxoSmithKline, Sanofi and Pfizer in the branded generics sector. Meanwhile, Piramal’s investors were clearly disappointed a takeover never materialised as shares fell 12% today to Rs502.35, wiping out gains the stock had made earlier this week. Top dog, top dollar The acquisition of Piramal’s so-called Healthcare Solutions business, coupled with Abbott’s existing operations in India, will propel Abbott to the number one spot in the Indian pharmaceutical market, ahead of Cipla and Ranbaxy Laboratories, with a 7% market share. Sales from the Healthcare Solutions business reached Rs20bn ($420m) last year and are expected to exceed $500m this year, a 20% annual growth rate which Abbott expects will continue for the next five years. By 2020 Abbott predicts its enlarged Indian business will generate revenues of $2.5bn. But Abbott’s move to capitalise from these impressive growth figures – the $8bn Indian pharma market is expected to double in within five years - has not come cheap.
    [Show full text]
  • Piramal Realty's Vaikunth Flower Show to Pay Homage to Mahatma Gandhi in Second Edition
    Piramal Realty’s Vaikunth Flower Show to Pay Homage to Mahatma Gandhi in Second Edition Second annual Vaikunth Flower Show to be held on December 10 & 11, and December 17 & 18, 2016, from 4pm to 8pm, at Piramal Vaikunth in Balkum, Thane Display of over one million flowers under the theme ‘Blue Gold – Indigo the Flower of Freedom’ to serve as a fitting tribute to the ‘Champaran Satyagraha’ championed by Mahatma Gandhi Over 22 themed-gardens, 5,000 hand-painted lanterns by children, and Blue Gold Bazaar inspired by the Indigo flower, to entertain guests of all ages December 9, 2016; Thane, Mumbai: Following the overwhelming response to its first edition, the annual Vaikunth Flower Show, organised by Piramal Realty, is returning for the second time at Piramal Vaikunth, the 32-acre residential development in Balkum, Thane. To be held on December 10 & 11, and December 17 & 18, 2016, the Vaikunth Flower Show is open to the public from 4pm to 8pm. Entry to the event is free upon registration. Quick Facts & Attractions: In its first year, the Vaikunth Flower Show welcomed approximately 50,000 visitors, Open to public from: December 10 & 11, and 17 including hundreds of children. & 18, 2016 Timings: 4pm – 8pm Dr. Swati Piramal, Vice-Chairperson, Over 22 Theme based gardens: Piramal Enterprises, said: “This year, the 1. Blue Gold – Indigo the Flower of Freedom Vaikunth Flower Show will pay homage to Garden 2. The President APJ Abdul Kalam - Tribute the Champaran Satyagraha, championed by Garden Mahatma Gandhi nearly a century ago. 3. Ranthambhor Wild Garden Inspired by the strife of farmers, the 4.
    [Show full text]
  • Consumer Goods Recovery in Discretionary and Urban Sales Led to Better Q3 Sector Update
    Consumer Goods Recovery in discretionary and urban sales led to better Q3 Sector Update Consumer goods companies’ Q3 performance was driven by sales recovery of Q3FY2021 Results Review discretionary categories (such as value-added hair oil and personal care products), sustained higher demand for healthcare and hygiene products, better traction to Sector: Consumer Goods new launches, and higher demand in rural markets coupled with improving demand in urban markets. General trade continues to grow strongly, e-commerce mix to Sector View: Positive overall revenue is improving due to higher sales and modern trade channel has witnessed sequential improvement due to recovery in urban sales. Most consumer goods companies under our coverage registered organic revenue growth of 6%-16%, driven by domestic volume growth of 7%-18% in Q3. Paint companies, including Asian Paints, registered strong volume growth of 30%, led by sustained high demand in tier III/IV towns and improving demand in metros and top cities due to receding scare of virus and improving construction and real estate activities. Overall, Sharekhan’s consumer goods universe registered revenue growth of ~14% in Q3FY2021, better than 9.1% growth achieved in Q2FY2021. Significant increase Our coverage universe in prices of palm oil, copra, other edible oils, and raw tea/coffee resulted in gross Companies CMP Reco. PT margin decline for companies such as HUL, Godrej Consumer Products (GCPL), (Rs) (Rs) Marico, and Tata Consumer Products (TCPL). However, lower ad spends and cost- Asian Paints 2,389 Buy 3,000 saving initiatives arrested the sharp decline of 80-100 bps in operating profit margins (OPM) for some companies.
    [Show full text]
  • Piramal Enterprises Limited Announces QIP to Raise ₹4996.2 Crores
    PRESS RELEASE Piramal Enterprises Limited Announces QIP to Raise ₹4996.2 crores Mumbai, India; October 18, 2017: Piramal Enterprises Limited, one of India’s large diversified conglomerates, had earlier last week announced a ₹4,996.2 crores Qualified Institutions Placement (QIP), a placement meant for qualified institutional buyers (QIB) under SEBI regulations. This was taken in the form of issuance of compulsory convertible debentures (CCD). “We aim to utilise these funds for augmenting the Company’s capital for the growth of its existing business verticals. Witnessing a strong demand from high quality investors, we are happy with the confidence reposed in Piramal Enterprises Limited,” said Mr. Ajay Piramal, Chairman, Piramal Group & Shriram Group. The Company has approved the conversion price of ₹2,690 per Equity Share, against the floor price of ₹2,688.35 which was determined as per the formula prescribed under Regulation 85 of the SEBI Regulations for the CCDs allotted to Eligible QIBs in the Issue. The Company will issue these CCDs with a face value of ₹107,600 each, convertible into equity shares of face value ₹2 each, with a maturity period of 18 months, with an option to the CCD holders to convert all or part of the CCDs held by them into Equity Shares at any time before the maturity date. Each CCD will be convertible into 40 equity shares. The issue is expected to close on October 25, 2017. Kotak Mahindra Capital Co. Ltd, Citigroup Global Markets India Pvt. Ltd, Morgan Stanley India Co. Pvt. Ltd and Motilal Oswal Investment Advisors Ltd. have been appointed to manage the QIP offering.
    [Show full text]
  • Emami Companyname
    RESULT UPDATE EMAMI Health and rural focus to bear fruit India Equity Research| Consumer Goods COMPANYNAME Emami’s consolidated Q1FY21 revenue (down 25.8% YoY), EBITDA (down EDELWEISS 4D RATINGS 8.3% YoY) and PAT (up 1.2% YoY) were better than our estimates. The Absolute Rating BUY lockdown affected performance in April and May, but June (domestic Rating Relative to Sector Performer business up 8% YoY) turned out to be well. The recovery has sustained Risk Rating Relative to Sector High with double-digit growth in July. Soft mentha prices expanded gross Sector Relative to Market Underweight margin 231bps YoY; with mentha prices remaining benign, we expect gross margin expansion to sustain. A sharp cut in ad spends (down 749bps YoY) led to 487bps YoY EBITDA margin expansion. The lockdown MARKET DATA (R: EMAM.BO, B: HMN IN) affected international business (IB) as well overall sales dipped 18% YoY CMP : INR 257 Target Price : INR 296 (however up 7% YoY in June). Going ahead, with promoter-level pledging 52-week range (INR) : 358 / 131 concern alleviating in the wake of the recent Emami Cement sale, a slew Share in issue (mn) : 444.5 of launches in health & hygiene to capitalise on the topical upswing, and M cap (INR bn/USD mn) : 115 / 1,510 a higher rural contribution should hold the company in good stead. Avg. Daily Vol.BSE/NSE(‘000) : 958.1 Maintain ‘BUY’ with a TP of INR296. SHARE HOLDING PATTERN (%) Health & hygiene portfolio gains; discretionary portfolio suffers Current Q4FY20 Q3FY20 Key highlights: i) 43% of portfolio, which is aligned towards health & hygiene, grew Promoters * 53.9 52.7 52.7 29% YoY while the balance fell 44% YoY.
    [Show full text]
  • VIP in Equity 11Aug21 RU
    India Equity Research Miscellaneous August 11, 2021 V I P INDUSTRIES RESULT UPDATE KEY DATA Strong beneficiary of re-opening Rating BUY Sector relative Outperformer Price (INR) 386 12 month price target (INR) 486 VIP Industries’ (VIP) Q1FY22 sales surged 411% YoY (down 15% QoQ), Market cap (INR bn/USD bn) 55/0.7 40% above estimate, with recovery in domestic travel. Gross margin Free float/Foreign ownership (%) 46.5/7.3 What’s Changed jumped 718bps QoQ to 50.9% led by price increases and lower Target Price Rating/Risk Rating discount. EBITDA increased to INR129mn (50% above estimate). QUICK TAKE Management expects strong revival in demand led by vaccination and Above In line Below recovery to be faster than first wave. With strong operational Profit efficiencies, we revise up FY22/23E EBITDA 73%/11%. We believe the Margins company is well placed led by opening up of the economy with strong Revenue Growth pent-up demand and value the stock at 42x (35x earlier) at historical Overall average for normalised earnings (Mar 2023E EPS), discounted to Dec 2022E EPS. Upgrade to ‘BUY’ with revised TP of INR486. FINANCIALS (INR mn) Strong gross margin improvement Year to March FY21A FY22E FY23E FY24E VIP reported a pick up of 411% YoY in Q1FY22 sales, in line with domestic travel, Revenue 6,186 10,516 16,089 18,502 though at mere 37% of pre-covid level (hit by second wave), but down 15% QoQ. EBITDA (653) 1,371 3,058 3,619 Adjusted profit (975) 499 1,697 2,153 Gross margin was up 866bps YoY and 718bps QoQ to 50.94% due to lower discounts, Diluted EPS (INR) (6.9) 3.5 12.0 15.2 better mix in favour of high-margin products and price increases.
    [Show full text]
  • HSBC Saudi Arabia Limited
    HSBC Saudi Arabia Limited HSBC China & India Equity Freestyle Fund - IAF Fund Details Monthly Factsheet Fund Manager HSBC Saudi Arabia Ltd. as of 31 January 2015 Inception Date 12 December 2005 Profile Inception Price USD 10 To provide capital appreciation through investing in a well-diversified portfolio comprising of shares in Indian and Chinese companies over a long period of five years and above . Fund Type Open ended Top Holdings Investment Policy Freestyle Management Stock Weight % Base Currency US Dollar of the Fund Tencent Holdings Ltd. 10 Baidu Inc. Sponsored ADR 9 Risk/Return Profile High Infosys Ltd. 8 Bloomberg Code SABCHIN AB Wipro Ltd. 7 Emami Ltd. 5 Zawya Code HSBCIEF.MF Oil & Natural Gas Corp. Ltd. 4 Fund Size (USD) 44 Million HCL Technologies Ltd. 4 Minimum Initial USD 2,000 Maruti Suzuki India Ltd. 4 Investment Cognizant Tech Solutions 4 Glenmark Pharmaceuticals Ltd. 4 Minimum Additional USD 1,000 Investment Fund Composition Valuation Day Monday & Thursday Cut off Time Before close of business; On Sunday for Monday valuation, and on Wednesday for Thursday valuation. Redeemed Funds Four business days Payment after valuation day Annual Management Fee 2% Subscription Fee Up to 2% Contact Details HSBC Saudi Arabia Limited Local Investors Toll Free Number 800 124 1212 International Investors Tel +966 1 299 2313 / +966 1 299 2314 Website www.hsbcsaudi.com Email: [email protected] Issued by HSBC Saudi Arabia Limited Authorized and regulated by Capital Market Authority License No. 05008-37 Please note that the above figures refer to past performance and that past performance is not a reliable indicator of future results.
    [Show full text]
  • Indiabulls Factsheet March 20
    March 2021 Very High Risk Investor Understand that their principal will be at Very High Risk How to read the Factsheet? March 2021 Fund Manager An employee of the asset management company such as a mutual fund or life insurer, who manages investments of the scheme. He is usually part of a larger team of fund managers and research analysts. Application Amount for Fresh Subscription This is the minimum investment amount for a new investor in a mutual fund scheme. Minimum Additional Amount This is the minimum investment amount for an existing investor in a mutual fund scheme. Yield to Maturity The Yield to Maturity or the YTM is the rate of return anticipated on a bond if held until maturity. YTM is expressed as an annual rate. The YTM factors in the bond’s current market price, par value, coupon interest rate and time to maturity. SIP SIP or systematic investment plan works on the principle of making periodic investments of a fixed sum. It works similar to a recurring bank deposit. For instance, an investor may opt for an SIP that invests` 500 every 15th of the month in an equity fund for a period of three years. NAV The NAV or the net asset value is the total asset value per unit of the mutual fund after deducting all related and permissible expenses. The NAV is calculated at the end of every business day. It is the value at which the investor enters or exits the mutual fund. Benchmark A group of securities, usually a market index, whose performance is used as a standard or benchmark to measure investment performance of mutual funds, among other investments.
    [Show full text]
  • Natco Pharma Limited
    Placement Document Not for Circulation Private and Confidential Serial No. [●] NATCO PHARMA LIMITED Originally incorporated as Natco Fine Pharmaceuticals Private Limited on September 19, 1981, the name of our Company was changed to “Natco Pharma Limited” on December 30, 1994 under the Companies Act, 1956. The registered office of our Company is at Natco House, Road no. 2, Banjara Hills, Hyderabad – 500 034, Telangana; Telephone: +91 40 2354 7532; Fax: +91 40 2354 8243; Email: [email protected]; Website: www.natcopharma.co.in; Corporate identification number:L24230TG1981PLC003201. Natco Pharma Limited (our “Company” or the “Issuer”) is issuing 1,600,000 equity shares of face value of Rs. 10 each (the “Equity Shares”) at a price of Rs. 2,130.55 per Equity Share, including a premium of Rs. 2,120.55 per Equity Share, aggregating to Rs. 3,408.88 million (the “Issue”). ISSUE IN RELIANCE UPON SECTION 42 OF THE COMPANIES ACT, 2013, AS AMENDED, READ WITH RULES MADE THEREUNDER, AND CHAPTER VIII OF THE SECURITIES AND EXCHANGE BOARD OF INDIA (ISSUE OF CAPITAL AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2009, AS AMENDED (THE “SEBI ICDR REGULATIONS”). THIS ISSUE AND THE DISTRIBUTION OF THIS PLACEMENT DOCUMENT IS BEING MADE TO QUALIFIED INSTITUTIONAL BUYERS (“QIBs”) AS DEFINED IN THE SEBI ICDR REGULATIONS IN RELIANCE UPON CHAPTER VIII OF THE SEBI ICDR REGULATIONS, AS AMENDED AND SECTION 42 OF THE COMPANIES ACT, 2013, AS AMENDED, AND RULES MADE THEREUNDER. THIS PLACEMENT DOCUMENT IS PERSONAL TO EACH PROSPECTIVE INVESTOR AND DOES NOT CONSTITUTE AN OFFER OR INVITATION OR SOLICITATION OF AN OFFER TO THE PUBLIC OR TO ANY OTHER PERSON OR CLASS OF INVESTORS WITHIN OR OUTSIDE INDIA OTHER THAN QIBs.
    [Show full text]
  • Signature Redacted
    Opportunities and Challenges of M&A in India By Nikhil Gupta Bachelor of Technology, Indian Institute of Technology, 2005 MBA, Indian School of Business, 2013 SUBMITTED TO THE MIT SLOAN SCHOOL OF MANAGEMENT IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF SCIENCE IN MANAGEMENT STUDIES AT THE M.I.T. LIBRARIES MASSACHUSETTS INSTITUTE OF TECHNOLOGY JUNE 2014 0 2014 Nikhil Gupta. All Rights Reserved. RECEIVED The author hereby grants to MIT permission to reproduce and to distribute publicly paper and electronic copies of this thesis document in whole or in part in any medium now known or hereafter created. Signature redacted Signature of Author: _ i_______U______d______d MIT Sloan School of Management May 9, 2014 Signature redacted Certified By: S P Kothari Gordon Y Billard Professor of Management MIT Sloan School of Management Accepted By: Signature redacted Michael A. Cusumano SMR Distinguished Professor of Management Program Director, M.S. in Management Studies Program MIT Sloan School of Management 1 [Page intentionallyleft blank] 2 Opportunities and challenges of M&A in India By Nikhil Gupta Submitted to the MIT Sloan School of Management on May 9, 2014 in partial fulfillment of the requirements for the degree of Master of Science in Management Studies ABSTRACT The Indian economy has witnessed a major transformation since the government of India introduced the liberalization policies in 1991 .Since then M&A activity in India has picked up pace as foreign companies began to enter and expand their footprint in India. In developed economies especially the US and western Europe, M&A has been prevalent for a long time and is used as a major tool in corporate restructuring.
    [Show full text]
  • Real Estate Lending - Nbfcs Most Exposed
    BFSI February 2018 Tax Laws Benami Act RERA RERA GST GST Housing Finance Diversified NBFCs Banks Real Estate Lending - NBFCs most exposed Research Analysts: Pankaj Agarwal, CFA Ravi Singh [email protected] [email protected] Tel: +91 22 3043 3206 Tel: +91 22 3043 3181 Rahil Shah [email protected] [email protected]: +91 22 3043 3217 BFSI CONTENTS Real Estate: NBFCs most exposed ………………………………………………….3 The residential real estate slowdown ……………………………………………..4 Non-bank lenders are increasing their developer financing exposure ……..11 Which lenders have riskier developer financing book? ……………………….16 Investment implications ……………………………………………………………23 Annexure I ……………………………………………………………………………28 [email protected] February 15, 2018 Ambit Capital Pvt. Ltd. Page 2 BFSI NEGATIVE THEMATIC February 15, 2018 Real Estate - NBFCs most exposed Exhibit A: Banks ranked better than HFCs or diversified NBFCs The residential real estate sector is going through a pricing and volume Lenders Quartile downturn (especially in big cities) due to the impact of RERA, the City Union Bank Q1 government’s crackdown on black money and GST. Whilst banks have been reducing exposure, non-bank lenders have significantly increased Kotak Mahindra Bank Q1 their exposure to the sector backed by a benign liquidity and interest State Bank Of India Q1 rate environment. Seasoning and tenure of loans, city-wise and Punjab National Bank Q1 developer-wise exposure, and yield on loans show that NBFCs/HFCs RBL Bank Q1 have significantly riskier real estate loan books than banks. Some of The Federal Bank Q2 these NBFCS/HFCs (Piramal, JM Finance etc.) are also running huge ALM mismatches (~2 years), and rising bond yields could impact their Axis Bank Q2 margins as well as asset quality.
    [Show full text]
  • Cyrus Mistry (11Th
    NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHI Company Appeal (AT) No. 254 of 2018 IN THE MATTER OF: Cyrus Investments Pvt. Ltd. ….Appellant Vs. Tata Sons Ltd. & Ors. ….Respondents Present: For Appellant: Mr. C. A. Sundaram, Mr. Arun Kathpalia and Mr. K.G. Raghavan, Sr. Advocates with Mr. Somashekhar Sundresan, Mr. Manik Dogra, Mr. Rohan Jaitley, Ms. Rohini Musa, Mr. Abhishek Venkatraman, Mrs. Sonal Jaitley Bakshi, Mr. Jaiyesh Bakhshi, Mr. Apurva Diwanji, Mr. Ravi Tyagi, Mr. Shubhanshu Gupta, Ms. Sanya Kapoor, Ms. Rini Badoni, Mr. Akshay Doctor, Mr. Devashish, Mr. Parag Sawant and Mr. Gunjan Shah, Advocates. For Respondents: Dr. A.M. Singhvi and Mr. Rajiv Nayyar, Sr. Advocates with Mr. Prateek Seksaria, Ms. Ruby Singh Ahuja, Ms. Tahira Karanjawala, Mr. Anupm Prakash, Mr. Avishkar Singhvi, Mr. Arjun Sharma, Mr. Sahil Monga, Mr. Utkarsh Maria, Mr. L. Nidhiram Sharma and Mr. Baij Nath Patel, Advocates for R-1. Mr. Harish N. Salve, Sr. Advocate with Mr. Dhruv Dewan, Mr. Nitesh Jain, Mr. Rohan Batra, Ms. Reena Choudhary, Ms. Yashna Mehta and Mr. Nitesh Jain, Advocates for R-2. Mr. Amit Sibal, Senior Advocate with Ms. Ruby Singh Ahuja, Ms. Tahira Karanjawala, Mr. Arjun Sharma, Mr. Sahil Monga, Mr. Utkarsh Maria, Advocates for R-3, 5 & 7. Mr. Mohan Parasaran, Sr. Advocate with Mr. ZalAndyarujina, Mr. J.N. Mistry, Ms. Namrata Parikh, Mr. Ashwin Kumar D.S, Mr. Sidharth Sharma, Mr. Saswat Pattnaik, Mr. Aditya 2 Panda, Mr. Kartik Anand and Ms. Aditi Dani, Advocates for R-6, 16 to 22. Mr. Janak Dwarkadas, Sr. Advocate with Mr. Akshay Makhija, Mr.
    [Show full text]