IPO Review
April 1, 2016
Equitas Holdings Ltd
Rating matrix
Rating
:
Price band | 109-110
Unrated
Issue Details
Issue Opens
Issue Closes
Issue Size (| Crore)
Price Band (|)
No of Shares on Offer (crore)
QIB (%)
Non-Institutional (%)
Retail (%)
Minimum lot size (No. of shares)
5-Apr-16
7-Apr-16
2139 -2159
109-110
19.6
50
15
35
135
Objects of the Issue
Investment in EMFL to augment capital
Investment in EFL to augment capital
Investment in EHFL to augment capital
General corporate purposes
| 288 crore
| 288 crore
| 40 crore
~| 104 crore
Shareholding Pattern
Promoter & promoter group
Foreign
Others
0.0%
92.8%
7.2%
0.0%
35.0%
65.0%
Financial Summary
| Crore
Net Interest Inc.
Non Interest Inc.
Operating profit
Net Profit
FY12
125.8
9.1
16.2
(3.5)
FY13
155.4
20.2
49.6
31.9
FY14
259.5
34.4
132.1
74.3
FY15 9MFY16
401.3
423.2
59.9
63.1
214.0
231.6
106.6
120.4
Valuation Summary (at | 110; upper price band)
(x)
P/E *
FY13
FY14
FY15
54.2
28.4
24.6
P/BV
1.3
1.1
2.5
P/ABV
1.4
1.1
2.6
* EPS annualised for 9mFY16
9MFY16
Pre Issue Post Issue
18.5
18.5
2.3
2.0
2.4
2.0
Research Analyst
Kajal Gandhi
kajal.gandhi@icicisecurities.com
Equitas Holdings (EHL) is a Chennai based diversified financial services
provider focused on individuals and micro and small enterprises (MSEs)
that are underserved by formal financing channels. The company has
three wholly-owned subsidiaries Equitas Micro Finance (EMFL), Equitas
Finance (EFL) and Equitas Housing Finance (EHFL).
EMFL is the fifth largest microfinance company in India in terms of loans
at | 2935 crore (53% of total loans). The consolidated AUM of EHL has
grown at a strong pace of 50% CAGR in FY11-15 to | 4010 crore,
increasing to | 5505 crore as on 9MFY16. NIM was at 11.6% as on
9MFY16 while PAT was at | 120 crore. EHL is also one of the 10
organisations that received in-principle approval from the RBI to set up a
small finance bank (SFB).
Key business aspects
Diversified product offering & markets with large cross-selling opportunities
EHL is focused on customer segments that are underserved by formal
financing channels. The diversification of business and revenue base with
respect to its product offerings and markets it serves is a key component
of the company’s success. EHL offers a range of financial products and
services including microfinance, used commercial vehicle finance, Micro
and Small Enterprise (MSE) finance and housing finance, providing it with
significant cross-selling and up-selling opportunities to its target
customers. As on 9MFY16, the proportion of MSE loan accounts
disbursed to microfinance customers was 87.4%. In addition, the
company plans to introduce other financing products like loan against
gold jewellery, as well as two wheeler loans.
Microfinance holds key to its strong growth and earnings. Its AUM has
increased at a CAGR of 43.6% from | 724 crore as of FY12 to | 2144 crore
as of FY15, and represented 53.5% of aggregate AUM as of FY15. As on
9MFY16, AUM was at | 2935 crore, representing 53.3% of aggregate
AUM. As of 9MFY16, there were 2.78 million loan accounts in the
microfinance business generating PAT of | 58 crore with NIM at 11.1%.
Strong margins & RoA; RoE moderate owing to lower leverage
EHL’s consolidated margins are strong at 11.6% due to higher margins it
earns in the MFI and vehicle financing business. RoA is at 3.1% on a
consolidated basis. Consolidated RoE was at 13% vs. RoE of 19.1% in the
MFI business due to lower leverage in other businesses, thereby keeping
RoE lower. Capital Adequacy for MFI is 21.5%, while others subsidiaries
its greater than 32%.
Vasant Lohiya
Concerns
vasant.lohiya@icicisecurities.com
•
Inability to manage costs on converting to small finance bank (SFBs)
•
Inability to raise adequate resources to meet CRR and SLR needs
•
Microfinance loans are unsecured and susceptible to credit risks.
Customer concentration risk
Vishal Narnolia
vishal.narnolia@icicisecurities.com
•
Heavy dependence on southern states, particularly Tamil Nadu
•
Lending operations involve significant amounts of cash collection
Priced at 2.4x P/ABV (9MFY16 ABV) on higher band
At the IPO price band of | 109-110, the stock is available at a multiple of
2.4x 9MFY16 ABV at the upper end of the price band. Post issue P/ABV at
upper price band stands at 2x 9MFY16 ABV.
ICICI Securities Ltd | Retail Equity Research
Company Background
Incorporated in 2007, Equitas Holdings is a Chennai based diversified
financial services provider focused on individuals and micro & small
enterprises (MSEs) that are underserved by formal financing channels. It
has three wholly-owned subsidiaries like Equitas Micro Finance (EMFL),
Equitas Finance (EFL) and Equitas Housing Finance (EHFL). Under EFL, it
operates the vehicle finance and MSE finance businesses. The focus
customer segment includes low income groups and economically weaker
individuals operating small businesses, as well as MSEs with limited
access to formal financing channels on account of their informal, variable
and cash-based income profile.
Equitas Microfinance (EMFL): The microfinance business is conducted
through wholly-owned subsidiary EMFL. This business provides loans
ranging approximately between | 2,000 and | 35,000, depending on the
loan cycle and mode of disbursement. As of FY15, EMFL was the fifth
largest microfinance company in India in terms of gross loan portfolio.
The AUM has increased at a CAGR of 43.6% from | 724 crore as of FY12
to | 2144 crore as of FY15, and represented 53.5% of aggregate AUM as
of FY15. As on 9MFY16, AUM was at | 2935 crore, representing 53.3% of
aggregate AUM. As of 9MFY16, there were 2.78 million loan accounts in
the microfinance business. It generated PAT of | 58.5 crore with NIM at
11.6% as on 9MFY16.
Equitas Finance (EFL): The used commercial vehicles (CV) finance
business and micro and small enterprise (MSE) finance is conducted
through EFL. The 9MFY16 PAT of EFL was at | 59 crore.
The used CV finance customers are typically first-time formal financial
channel borrowers purchasing commercial vehicles. Customers also
include small fleet operators. The average loan ticket size in FY15 and
9MFY16 was | 0.38 million and | 0.38 million, respectively. The vehicle
finance business AUM increased at a CAGR of 96.5% from | 304 crore as
of FY13 to | 1175 crore as of FY15, representing 29.3% of aggregate AUM
as of FY15. The AUM was | 1406 crore as of 9MFY16, representing 25.5%
of total AUM. As of 9MFY16, there were 52,274 loan accounts in the
vehicle finance business.
Under the MSE finance business, EFL provides asset backed financing
primarily focused on self-employed individuals operating MSEs, typically
in urban and semi-urban locations. The average loan ticket size for MSEs
was | 0.23 million and | 0.21 million, respectively, in FY15 and 9MFY15.
The AUM increased from | 87 crore as of FY14 to | 511 crore as of FY15,
which represented 12.7% of our aggregate AUM. The AUM was | 936
crore as of 9MFY16, representing 17% of total AUM. As of 9MFY16, there
were 45,992 loan accounts in our MSE finance business. In 9MFY16, the
proportion of MSE loan accounts disbursed to the microfinance
customers was 87.4%.
Equitas Housing Finance (EHFL): The focus of the company is on
providing micro-housing and affordable-housing loans to self employed
individuals who have limited access to loans from banks and larger
housing finance companies. The housing finance business AUM
increased at a CAGR of 100.54% from | 44.6 crore as of FY13 to | 180
crore as of FY15, which represented 4.5% of aggregate AUM as on FY15.
As on 9MFY15, the same was 4.2% of total AUM and was at | 229 crore
with 4022 loan accounts.
ICICI Securities Ltd | Retail Equity Research
Page 2
Exhibit 1: Snapshot of the financials of the EHL and its three subsidiaries
(| Crore)
NII
PAT
EPS (|)
BVPS (|)
RoA (%)
RoE (%)
AUM
Total Loan Accounts
CoF (%)
Yield (%)
Spread (%)
NIM (%)
GNPA
NNPA
GNPA (%)
NNPA (%)
No. of Branches
No. of Employees
No. of loan accounts
Consolidated
FY15
9MFY16
392
415
107
1204
4.5
4.5
43.5
48.0
3.0
3.1
11.2
13.0
4010
5505
2516647 2884435
12.1
11.4
21.2
20.3
9.1
8.8
12.1
11.6
37
67
28
49
1.1
1.3
0.8
1.0
505
539
6275
8067
2516647 2884435
EMFL
EFL
EHFL
FY15
9MFY16 FY15
9MFY16 FY15
9MFY16
215
212
158
189
9
9
69
59
34
59
2
1
3.5
3.0
1.1
1.4
0.6
0.3
19.1
22.1
14.8
16.2
9.8
10.1
3.5
2.9
2.4
3.6
1.4
0.7
19.8
19.1
7.5
12.1
5.8
4.0
2144
2935 1686
2341
180
229
2449694 2782147 63842
98266 3111
4022
12.7
12.0
11.0
10.7 11.9
11.3
22.0
20.8
20.4
20.1 16.4
15.8
9.3
8.8
9.4
9.4
4.5
4.5
11.8
11.1
12.3
12.5
6.6
5.9
1
4
33
56
3
7
0
1
25
42
2
6
0.0
0.2
0.0
2.6
0.0
3.0
0.0
0.1
0.0
2.0
0.0
2.5
361
391
131
134
13
14
3922
5134 2235
2774
118
159
2449694 2782147 41644
52274 3111
4022
Source: Company, ICICIdirect.com Research
ICICI Securities Ltd | Retail Equity Research
Page 3
Financial Performance
EHL’s aggregate AUM on a consolidated basis has grown at strong pace
of 50% CAGR in FY11-15 to | 4010 crore. As on 9MFY16, AUM was at
| 5505 crore. In that, the MFI segment AUM increased at 28% CAGR in
FY11-15 to | 2144 crore. On a consolidated basis, NIM was at 12.1% as
on FY15 and 11.6% as on 9MFY16. EHL earned profit of | 106.6 crore as
on FY15 and | 120 crore as on 9MFY16.
Exhibit 2: AUM post 50% CAGR in FY11-15 to | 4010 crore
5505
5000
| crore
3000
0
3000
1686
305 1484
92 824
724
2000
889
1135
1503
FY13
FY14
5000
4000
2486
2000
1000
2341
4010
4000
6000
| crore
6000
2935
2144
1000
0
FY12
MFI
EFL
FY15
Housing Finance
9MFY16
Total AUM (RHS)
Source: Company, ICICIdirect.com Research
500.0
401
400.0
423
80.0
60.0
259
40.0
155
200.0
(%)
300.0
%
| crore
Exhibit 4: Margin trends
20.0
100.0
0.0
0.0
FY13
FY14
FY15
Net Interest Income
9MFY16
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
14.9
14.5
12.3
12.2
11.8
12.7
12.4
12.1
11.1
11.6
14.0
12.0
10.0
8.0
6.0
4.0
FY12
NII growth (%)
16.0
(%)
Exhibit 3: Trends in Net interest income
FY13
FY14
NIM - consol
Source: Company, ICICIdirect.com, Research
Source: Company, ICICIdirect.com, Research
Exhibit 5: Trend in profits
Exhibit 6: Return Ratios
FY15
9MFY16
NIM - MFI
160
3.0
40
0
-40
-3.5
FY12
31.9
74.3
106.6
120.4
FY13
FY14
FY15
9MFY16
(%)
| crore
80
2.0
Source: Company, ICICIdirect.com, Research
ICICI Securities Ltd | Retail Equity Research
11.2
3.0
13.0
3.1
2.3
0.0
15
10
5
1.0
-1.0
PAT
12.3
3.2
8.2
(1.2)
-0.4
FY12
FY13
(%)
4.0
120
FY14
ROE
FY15
9MFY16
(5)
ROA
Source: Company, ICICIdirect.com, Research
Page 4
Microfinance sector in India
The RBI granted priority sector status to MFIs in 2000-01, following which,
the microfinance sector witnessed rapid growth in value of outstanding
loans. The growth was owing to large scale availability of funding in terms
of both debt and equity. The gross loan portfolio (GLP) grew at a CAGR of
almost 50% from | 71 billion in FY08 to around | 235 billion in FY11. The
Andhra Pradesh (AP) state government ordinance regarding MFIs in FY11
adversely impacted the business models of MFIs. This ordinance led to a
decline of almost 14% YoY in the industry portfolio in FY12. The issuance
of RBI guidelines for MFIs in 2011 increased the confidence of commercial
banks in MFIs business model leading to a revival in banking credit being
extended to the sector, resulting in an almost 35% and 43% YoY increase
in GLP in FY14 and FY15, respectively. According to a Crisil report, over
the next two years, GLP of MFIs is expected to record CAGR of 28-30%.
(| crore)
Exhibit 7: Loan portfolio of the MFI industry has witnessed strong growth in the past
50000
45000
40000
35000
30000
25000
20000
15000
10000
5000
0
47200
32900
20600
23500
24400
20500
13800
7100
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
MFI industry loan portfolio
Source: Company, ICICIdirect.com Research
Exhibit 8: Top 5 MFI’s account for ~50% of the Gross Loan Portfolio (GLP) of the industry
Bandhan
20%
SKS
9%
Others
51%
Janalakshmi
8%
Ujjivan
Equitas 7%
5%
Source: Company, ICICIdirect.com Research
In terms of market share, the top 5 MFIs (Bandhan Financial Services Pvt
Ltd, SKS Microfinance Ltd., Janalakshmi Financial Services Pvt Ltd,
Ujjivan Financial Services Pvt Ltd and Equitas Micro Finance Ltd
accounted for close to 50% of the overall GLP in the industry as of FY15.
ICICI Securities Ltd | Retail Equity Research
Page 5
Strategies:
Diversified product offering & markets with large cross-selling opportunities
Equitas Holdings (EHL) is focused on customer segments that are
underserved by formal financing channels. The diversification of business
and revenue base with respect to its product offerings and markets it
serves is a key component of the company’s success. EHL offers a range
of financial products and services including microfinance, used
commercial vehicle finance, MSE finance and housing finance, which
provide it with significant cross-selling and up-selling opportunities to its
target customers. As on 9MFY16, the proportion of the MSE loan
accounts disbursed to its microfinance customer was 87.4%. In addition,
the company plans to introduce other financing products like loan against
gold jewellery, as well as two-wheeler loans.
Comprehensive understanding, successful track record with underserved
customer
The company’s regular engagement with the target customer segments
and understanding of related socio-economic dynamics enables it to
establish effective credit and operational procedures and risk control
frameworks, enabling it to improve on credit evaluation, asset valuation,
loan disbursement, staff training and collection procedures. This
understanding of EHL and track record of working with these customers is
particularly critical to the success of its proposed operations as an SFB in
the future.
Strong corporate governance standards & transparent operations
EHL’s corporate governance standards and commitment to transparent
operations have enabled it to strengthen its relationship with its target
customer segments, employees and investors. The company had
implemented most of such operational and risk management controls
much prior to the regulatory regime introduced by the RBI post adverse
developments in the microfinance sector of Andhra Pradesh in 2010. It
introduced customer friendly repayment policies designed to address
emergency circumstances such as death of a family member or a major
illness without charging any additional interest. EHL also provides
insurance cover for microfinance customers without commission
charges, which is also disclosed in the customer’s passbooks. The
employees are also trained to explain reducing balance interest rates to
customers. Since inception, the company has complied with corporate
governance standards applicable to publicly listed companies.
Exhibit 9: Financial Summary
| Crore
Net Interest Income
Pre Provisioning Profit
Net Profit
EPS (|)
Book value per share (|)
GNPA (%)
RoE (%)
RoA (%)
FY12
125.8
16.2
-3.5
-0.2
68.0
1.2
-0.4
-1.2
FY13
155.4
49.6
31.9
2.0
81.7
0.3
2.3
8.2
FY14
259.5
132.1
74.3
3.9
102.1
0.7
3.2
12.3
FY15
401.3
214.0
106.6
4.5
43.5
1.1
3.0
11.2
9MFY16
423.2
231.6
120.4
4.5
48.0
1.3
3.1
13.0
Source: RHP, Company, ICICIdirect.com Research
ICICI Securities Ltd | Retail Equity Research
Page 6
Key risks and concerns
Inability to manage expenses post converting to small finance bank (SFBs)
Equitas Holdings is one of the recipients of in-principle approval from the
RBI for setting up small finance bank (SFB). The business model and
regulatory framework governing SFBs are untested in India. Once the
conversion to SFB commences, the company will have to incur large
expenses in the early stages on recruiting staff, technology, etc. Revenues
may not be commensurate with expenses, which could impact the
company’s profitability and return ratios.
Inability to raise adequate resources to meet CRR, SLR requirements
The proposed SFB would be required to meet all liquidity reserve
requirements prescribed by the RBI from time to time in the form of SLR
and CRR on the date of commencement of the banking business. This
would require mobilising fairly large amount of money to meet these
investment requirements, which may have a corresponding impact on the
growth of the loan book of the SFB. Inability to raise adequate resources
to meet these investment requirements within time or at all may have a
material impact on the financial performance or future results.
Microfinance loans unsecured; susceptible to credit risks
Microfinance customers typically belong to the economically weaker
sections, with limited sources of income, savings and credit records. They
are, therefore, unable to provide any collateral or security for their loans.
Such customers are at times unable to or may not provide accurate
information about themselves. Further, in case of emergencies like death
or major illness, microfinance customers may find it difficult to pay EMIs
on time. These factors may lead to increased levels of NPAs.
Heavy dependence on southern states, particularly Tamil Nadu
The company’s business is heavily dependent on the performance of the
southern states of India, particularly Tamil Nadu. While the operations
have extended to other states like Maharashtra, Madhya Pradesh,
Karnataka, Rajasthan, etc, branches and products continue to be
concentrated in Tamil Nadu. In the event of a regional slowdown in
economic activity in Tamil Nadu or factors such as a slowdown in sectors
such as MSE, the company may experience more pronounced effects on
financial condition and results of operations.
Lending operations involve significant amounts of cash collection
The company’s lending and collection operations involve handling of
significant amounts of cash, including collections of instalment
repayments in cash especially in the microfinance and vehicle finance
business. Such large amounts of cash collection expose it to risk of loss,
fraud, misappropriation or unauthorised transactions by employees
responsible for dealing with such cash collections.
Scalability concerns due to regional presence
EHL being a strong player in Tamil Nadu and other southern regions,
scalability of the lending business will be a concern due to regional
presence. Also, with an SFB licence, better liability management will be
needed to scale up resources.
ICICI Securities Ltd | Retail Equity Research
Page 7
Financial Summary
Exhibit 10: Profit and Loss Statement
(| Crore)
Interest Earned
Interest Expended
Net Interest Income
growth (%)
Non Interest Income
Processing fees
Other income
Net Income
Staff cost
Other Operating expense
Operating profit
Provisions
PBT
Taxes
Net Profit
EPS (|)
FY12
190.0
64.2
125.8
9.1
1.6
7.6
134.9
63.8
54.8
16.2
5.0
11.3
14.7
-3.5
(0.2)
FY13
263.0
107.6
155.4
23.5
20.2
12.6
7.6
175.6
78.0
47.9
49.6
8.9
40.7
8.8
31.9
2.0
FY14
449.0
189.5
259.5
67.0
34.4
29.0
5.4
293.9
100.3
61.5
132.1
18.4
113.7
39.3
74.3
3.9
FY15
696.0
294.7
401.3
54.7
59.9
51.1
8.8
461.2
155.1
92.1
214.0
50.4
163.5
56.9
106.6
4
9MFY16
731.5
308.3
423.2
5.5
63.1
52.0
11.1
486.4
164.0
90.7
231.6
44.5
187.1
66.8
120.4
4.5
Source: RHP, ICICIdirect.com Research
Exhibit 11: Balance Sheet
(| Crore)
Sources of Funds
Capital
Reserves and Surplus
Networth
Deposits
Borrowings
Other Liabilities & Provisions
Total
FY12
FY13
FY14
FY15
9MFY16
44.4
257.8
302.3
0.0
368.9
289.7
960.8
57.8
414.2
471.9
0.0
849.3
532.7
1853.9
72.6
669.4
741.7
0.0
1061.4
948.1
2751.6
268.9
901.9
117.1
0.0
1887.9
1406.2
4464.9
269.5
1025.1
129.5
0.0
2695.4
297.2
5,796.6
Applications of Funds
Fixed Assets
Investments
Advances
Other Assets
Cash with RBI & call money
25.6
0.2
616.0
134.6
184.5
24.2
7.5
1213.5
162.7
446.0
28
4
2123
182.3
415
47.3
175.7
3464.6
219.9
557.4
21.5
176.5
5048.7
269.8
280.1
Source: Company, ICICIdirect.com Research
ICICI Securities Ltd | Retail Equity Research
Page 8
Exhibit 12: Key Ratios
(Year-end March)
Valuation
No. of Equity Shares (Crore)
EPS (Rs.)
BV (Rs.)
ABV (Rs.)
P/E
P/BV
P/ABV
Yields & Margins (%)
Net Interest Margins
Yield on loans
Cost of borrowing
Quality and Efficiency (%)
GNPA
NNPA
ROE
ROA
FY12
FY13
FY14
FY15
9MFY16
4.4
-0.2
68.0
67.9
NM
1.6
1.6
5.8
2.0
81.7
81.3
54.2
1.3
1.4
7.3
3.9
102.1
100.3
28.4
1.1
1.1
26.9
4.5
43.5
42.5
24.6
2.5
2.6
26.9
4.5
48.0
46.2
18.5
2.3
2.4
14.5
22.4
11.1
12.7
22.1
11.7
12.4
21.9
12.1
12.1
21.2
12.1
11.6
20.3
11.4
1.2
0.1
-0.4
(1.2)
0.3
0.2
2.3
8.2
0.7
0.6
3.2
12.3
1.1
0.8
3.0
11.2
1.3
1.0
3.1
13.0
Source: Company, ICICIdirect.com Research
ICICI Securities Ltd | Retail Equity Research
Page 9
RATING RATIONALE
ICICIdirect.com endeavours to provide objective opinions and recommendations. ICICIdirect.com assigns ratings to its
stocks according to their notional target price vs. current market price and then categorises them as Strong Buy, Buy, Hold
and Sell. The performance horizon is two years unless specified and the notional target price is defined as the analysts'
valuation for a stock.
Strong Buy: >15%/20% for large caps/midcaps, respectively, with high conviction;
Buy: >10%/15% for large caps/midcaps, respectively;
Hold: Up to +/-10%;
Sell: -10% or more;
Pankaj Pandey
Head – Research
pankaj.pandey@icicisecurities.com
ICICIdirect.com Research Desk,
ICICI Securities Limited,
1st Floor, Akruti Trade Centre,
Road No 7, MIDC,
Andheri (East)
Mumbai – 400 093
research@icicidirect.com
ICICI Securities Ltd | Retail Equity Research
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ANALYST CERTIFICATION
We /I, Kajal Gandhi, CA, Vasant Lohiya, CA and Vishal Narnolia, MBA Research Analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research
report accurately reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s)
or view(s) in this report.
Terms & conditions and other disclosures:
ICICI Securities Limited (ICICI Securities) is a Sebi registered Research Analyst having registration no. INH000000990. ICICI Securities Limited (ICICI Securities) is a full-service, integrated investment banking
and is, inter alia, engaged in the business of stock brokering and distribution of financial products. ICICI Securities is a wholly-owned subsidiary of ICICI Bank which is India’s largest private sector bank and
has its various subsidiaries engaged in businesses of housing finance, asset management, life insurance, general insurance, venture capital fund management, etc. (“associates”), the details in respect of
which are available on www.icicibank.com
ICICI Securities is one of the leading merchant bankers/ underwriters of securities and participate in virtually all securities trading markets in India. We and our associates might have investment banking
and other business relationship with a significant percentage of companies covered by our Investment Research Department. ICICI Securities generally prohibits its analysts, persons reporting to analysts
and their relatives from maintaining a financial interest in the securities or derivatives of any companies that the analysts cover.
The information and opinions in this report have been prepared by ICICI Securities and are subject to change without any notice. The report and information contained herein is strictly confidential and
meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without
prior written consent of ICICI Securities. While we would endeavour to update the information herein on a reasonable basis, ICICI Securities is under no obligation to update or keep the information current.
Also, there may be regulatory, compliance or other reasons that may prevent ICICI Securities from doing so. Non-rated securities indicate that rating on a particular security has been suspended
temporarily and such suspension is in compliance with applicable regulations and/or ICICI Securities policies, in circumstances where ICICI Securities might be acting in an advisory capacity to this
company, or in certain other circumstances.
This report is based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. This
report and information herein is solely for informational purpose and shall not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial
instruments. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. ICICI Securities will not treat recipients as customers by virtue of their
receiving this report. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific
circumstances. The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment
objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. The recipient should independently evaluate
the investment risks. The value and return on investment may vary because of changes in interest rates, foreign exchange rates or any other reason. ICICI Securities accepts no liabilities whatsoever for any
loss or damage of any kind arising out of the use of this report. Past performance is not necessarily a guide to future performance. Investors are advised to see Risk Disclosure Document to understand the
risks associated before investing in the securities markets. Actual results may differ materially from those set forth in projections. Forward-looking statements are not predictions and may be subject to
change without notice.
ICICI Securities or its associates might have managed or co-managed public offering of securities for the subject company or might have been mandated by the subject company for any other assignment
in the past twelve months.
ICICI Securities or its associates might have received any compensation from the companies mentioned in the report during the period preceding twelve months from the date of this report for services in
respect of managing or co-managing public offerings, corporate finance, investment banking or merchant banking, brokerage services or other advisory service in a merger or specific transaction.
ICICI Securities or its associates might have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the companies mentioned
in the report in the past twelve months.
ICICI Securities encourages independence in research report preparation and strives to minimize conflict in preparation of research report. ICICI Securities or its analysts did not receive any compensation
or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither ICICI Securities nor Research Analysts have any
material conflict of interest at the time of publication of this report.
It is confirmed that Kajal Gandhi, CA, Vasant Lohiya, CA and Vishal Narnolia, MBA, Research Analysts of this report have not received any compensation from the companies mentioned in the report in the
preceding twelve months.
Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions.
ICICI Securities or its subsidiaries collectively or Research Analysts do not own 1% or more of the equity securities of the Company mentioned in the report as of the last day of the month preceding the
publication of the research report.
Since associates of ICICI Securities are engaged in various financial service businesses, they might have financial interests or beneficial ownership in various companies including the subject
company/companies mentioned in this report.
It is confirmed that Kajal Gandhi, CA, Vasant Lohiya, CA and Vishal Narnolia, MBA, Research Analysts do not serve as an officer, director or employee of the companies mentioned in the report.
ICICI Securities may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report.
Neither the Research Analysts nor ICICI Securities have been engaged in market making activity for the companies mentioned in the report.
We submit that no material disciplinary action has been taken on ICICI Securities by any Regulatory Authority impacting Equity Research Analysis activities.
This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution,
publication, availability or use would be contrary to law, regulation or which would subject ICICI Securities and affiliates to any registration or licensing requirement within such jurisdiction. The securities
described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and
to observe such restriction.
Please note, ICICI Securities Ltd has been appointed as one of the Lead Managers to the public issue of Equitas Holdings. This report is prepared on the basis of publicly available information.
ICICI Securities Ltd | Retail Equity Research
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