IPO Review

August 2, 2016

SP Apparels Ltd

Rating matrix

Rating

Avoid

Price band | 258 - 268

Issue Details
Issue opens

2-Aug-16

Issue closes

4-Aug-16

Issue size (| crore)

239.00

Fresh Issue

215.00
24.00

OFS (NYLIM India Fund)

Number of shares offered (crore)
Lower band

0.83

Higher band

0.80

QIB

50%

Non-institutional

15%

Retail

35%

Minimum lot size (no. of shares)

55

Objects of the Issue (| Crore)

Repayment or prepayment of debt

~| 63

Expansion and modernization of facility at

Valapady, Salem, Tamil Nadu

~| 70

Opening of new stores under Crocodile brand

~| 27.9

Addition of balancing machineries for our existing

dyeing unit at SIPCOT, Perundurai

~| 4.9

General Corporate Purposes and Issue Expenses

Total primary fund raise

Balance Amount
~| 239

SPAL manufactures and exports knitted garments for infants and children.
Exports constitute ~86%, 84% and 79% of SPALs total revenues over
FY16, FY15 and FY14, respectively. In addition to the same, top five
customers comprise ~95% of total revenues. In the absence of long-term
supply agreements, we believe this client concentration is a major risk.
Furthermore, with the new textile policy promoting smaller manufacturing
units, there would be increased competition, which may lead to tepid
volume growth and competitive pricing.

Subdued realisation growth; volumes & repeat orders key for topline growth

Pre Issue

Post Issue#

Promoter and Promoter group

87.5

59.6

Others (incl. NYLIM)

12.5

Public

4.9
35.5

# On the higher band

As global players seek price arbitrage, which apart from quality remains
key, realisation growth is expected to remain subdued. Although SPALs
production volumes grew at 3% CAGR in FY13-16, repeat orders remains
key to keep utilisation levels elevated. SPAL currently operates at 88%
utilisation level, with order visibility of four months. We believe any
softening in the same would drastically impact the financials.

Growth key for valuation; 19x FY16 P/E appears expensive; AVOID

Valuation Summary (at | 268 ;upper price band)

FY12
69.4
15.8
8.3
11.4
12.4

SP Apparels Ltd (SPAL), incorporated in 1989, is promoted by P

Sundararajan and S Latha. The company is mainly into manufacturing and
export of knitted garments for infants and children. With 21
manufacturing facilities, all in Avinashi, Tamil Nadu, SPAL produced
~39.1 million pieces (36 million exported to international customers like
Tesco & Primark) in FY16. The company owns 4874 sewing machines,
eight cutting machines, 79 embroidery machines, 17 printing machines,
16,896 spindles and 22 dyeing machines. In addition to the manufacturing
of garments, SPAL has a license agreement for the exclusive
manufacture, distribution and marketing of menswear products under the
trademark Crocodile in India. Under the brand name Crocodile, SPAL
operates 40 exclusive brand outlets (37 - company owned operated
stores and three franchise) and generates 6.4% of total revenues. With a
revenue growth of 8% CAGR over 2012-16, the company (19x P/E) is
richly valued compared to its peers. Thus, We recommend AVOID.

Investment Concerns
Significant client concentration in export business

Shareholding Pattern

P/E
EV/EBITDA
P/B
ROCE
ROE

Subdued growth; elevated valuations

FY13
285.1
16.5
8.1
11.1
2.9

FY14
101.1
14.1
6.9
12.9
7.1

FY15
66.4
12.6
6.3
14.7
9.8

FY16
19.4
10.2
4.9
18.0
26.2

Research Analyst
Bharat Chhoda
bharat.chhoda@icicisecurities.com
Ankit Panchmatia
ankit.panchmatia@icicisecurities.com

At the upper price band of | 268, the stock is valued at 19.4x post issue
equity FY16 P/E, which appears to be high considering its growth
momentum. This is compared to players in a similar business like Kitex,
KPR Mills and Siyaram Silk that are growing at higher annual rates and
trading at lower/similar multiples. Hence, we recommend that investors
AVOID subscribing to the IPO.
Exhibit 1: Key Financials
| crore
Net Sales
EBITDA
EBITDA Margins (%)
Depreciation
Interest
PAT
PAT Margins (%)
Diluted EPS (|)

Source: RHP, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

FY11
369.0
52.6
14.2
16.0
25.2
14.1
3.8
5.6

FY12
400.6
60.2
15.0
16.3
40.3
9.7
2.4
3.9

FY13
428.5
55.0
12.8
16.9
34.3
2.4
0.6
0.9

FY14
450.9
63.9
14.2
17.6
35.6
6.7
1.5
2.7

FY15
472.6
68.9
14.6
20.0
31.2
10.2
2.1
4.0

FY16
532.8
85.3
16.0
20.1
25.3
34.7
6.5
13.8

Company Background
Exhibit 2: No. of garments manufactured
45
40
35

39
36

32

31

30
25
20
15
10
5
0
FY13

FY14

FY15

Garments manufactured (mn pcs.)

FY16

SP Apparels (SPAL), with a production capacity of 50 million pieces per

year, is a leading manufacturer and exporter of knitted garments for
infants and children in India. SPAL provides end-to-end garment
manufacturing services from grey fabric to finished products. With a wide
range of manufacturing activities like production of yarn, dyeing of fabric,
sewing, cutting, printing, embroidery and finishing of garments, SPAL
executes bulk orders as per the requirements of its foreign counterpart.
The product range for infants and children includes body suits, sleep
suits, tops and bottoms. SPAL clientele includes international players like
George, Tesco, Crystal Martin, Mother Care, Dunnes Stores, Primark, etc.
SPAL follows a centralised manufacturing process with operations at 21
manufacturing facilities; all located within 125 km radius of Avinashi,
Tamil Nadu and registered office at Kavindapadi.
Exhibit 3: Integrated manufacturing process

Source: RHP

Source: Company, ICICIdirect.com Research

SPAL undertakes in-house manufacturing activities, which include

designing, embroidery, printing, sewing and cutting of garments. The
manufacturing operations are supported by a wide range of infrastructure
facilities, which include 4874 sewing machines, eight cutting machines, 79
embroidery machines, 17 printing machines, 16896 spindles and 22
dyeing machines. For FY16, with 9147 full time employees, the
manufacturing capacity operated at 88% utilisation level. Subsequently,
SPAL produced ~39 million pieces in FY16 out of which ~36 million
garments (~92%) were exported.

ICICI Securities Ltd | Retail Equity Research

Page 2

Utilisation of funds in manufacturing business:-

SPAL proposes to utilise | 75.7 crore from the net proceeds towards:
Enhancing spinning capacity (from 16896 spindles to 22272 spindles)
Increasing the blow room capacity (from 3200 kg/day to 15015
kg/day)
Setting up a new knitting facility and
Investment in balancing equipment at the SIPCOT facility

Retail & branding business

SPAL also manufactures and retails menswear garments under the brand
Crocodile consisting of shirts, polo shirts, t-shirts, trousers, jeans,
sweaters, jackets and mens innerwear consisting of vests, briefs, boxer
shorts and socks. SPAL sells Crocodile branded products through a
sales and distribution network that includes 41 exclusive brand outlets, of
which 37 are company owned operated stores and three are franchise
stores. It also sells these products on majority of the third party ecommerce platforms. SPAL owned subsidiary Crocodile Products Pvt Ltd
(CPPL) has formed a JV with Crocodile International Pte Ltd (CIPL)
renewed every seven months. The JV proportion is distributed as a 70:30
of the total sales. Furthermore, CPPL is liable to pay royalty to CIPL, which
is 5% in FY16 compared to the earlier 3.8% in earlier years.
Exhibit 4: Proposed expansion in Crocodile

4
4
4
1

1
1

1
2
10

10
9
5
4

Source: RHP

ICICI Securities Ltd | Retail Equity Research

Page 3

Objects of issue
The objects of the net proceeds (as defined below) of the fresh issue are:
(a) Repayment of debt
(b) Expansion & modernisation of manufacturing facility; and
(c) Opening of stores under brand Crocodile
Exhibit 5: Break-up of objects of offer
Total estimated cost

Amount which will be

financed from net
proceeds

Particulars (amount in | crore)

Estimated net proceeds utilisation during fiscal

2017

2018

2019

Repayment or prepayment of debt

Expansion and modernization of manufacturing facility at Valapady, Salem,
Tamil Nadu

63.0

63.0

63.0

70.2

70.2

28.1

35.1

7.0

Opening of new stores for the sale of Crocodile brand products

27.9

27.9

6.5

10.4

10.9

Addition of balancing machineries for existing dyeing unit at SIPCOT,

Perundurai

4.9

4.9

General corporate purposes

TBD

Total

4.9
-

Source: RHP

Key Financials
The company, as on FY15, has a total capacity of 50 million pieces. The
number of apparels manufactured grew at a CAGR of 3% in FY13-16 from
35.5 million pieces in FY13 to 39 million pieces in FY16. Accordingly,
revenues increased at a CAGR of 8% over the same period from | 429
crore in FY13 to | 533 crore in FY16. The capacity utilisation was at 88%
for FY16. Majority of the garments were exported to international players
like Tesco, George, Primark, Mothercare, etc. Sale from exports were at
36 million pieces, which is ~92% of the production.
Exhibit 6: Number of garments manufactured
600.0

533

500.0

429

451

| crore

400.0

401

473

300.0
200.0
100.0
0.0
FY12

FY13

FY14

FY15

FY16

Source: RHP

Approximately 7% of total revenues are contributed by the sale of

branded goods under the Crocodile brands. The retail business includes
40 outlets and sale from third party e-commerce platforms.

ICICI Securities Ltd | Retail Equity Research

Page 4

EBITDA in FY12-15 grew at a CAGR of 9%, from | 60 crore FY12 to | 85

crore in FY16. Following the same, EBITDA margins expanded 100 bps
over the same period. Margins for FY16 were at 16% compared to 15% in
FY12. In FY16, EBITDA improved on the back of lower operating
expenses. However, the decline in interest expenses led PAT growth to
more than double to | 34 crore compared to | 9 crore in FY12.
Exhibit 7: Number of garments manufactured
18

180.0
16.0

15.0
12.8

14
12
10

90.0

| crore

135.0

16

14.6

14.2

55.0

63.9

68.9

FY12

FY13

FY14

FY15

85.3

60.2

6
45.0

4
2

0.0

0
EBITDA

EBITDA Margins (%)

Source: RHP

Exhibit 8: Number of garments manufactured

40.0

6.5

30.0

20.0

2.4
9.7

2.4

FY12

2.1

1.5

10.0
0.0

| crore

6.7

10.2

34.7

FY14

FY15

FY16

0.6

FY13

PAT

1
0

PAT Margins (%)

Source: RHP

Exhibit 9: Number of garments manufactured

50
40
30
%

26.2

20
10

11.4

11.1

14.7

12.9

18.0

12.4

9.8

7.1

0
FY12

2.9
FY13

FY14
ROCE

FY15

FY16

ROE

Source: RHP

ICICI Securities Ltd | Retail Equity Research

Page 5

Investment Concerns
Overdependence on exports; absence of long term agreements
The export business contributes significantly to total revenues of the
company. Approximately 90% of total revenues were generated by
export of knitted garments products for infants and children. The
company refrain from getting into long term sales contract with any of the
export customers. However, they execute sales orders based on the
purchase orders received from customers. The purchase order usually
involves designing, quantity, delivery schedule and price. Accordingly,
SPAL manufactures the demanded requirements of the customers. The
prime responsibility of SPAL is to manufacture the products as per the
quality requirements and deliver such products on a timely basis.
Generally, the orders are placed at the start of each season. However,
there are no binding agreements with existing customer to provide future
orders. SPAL does not enter into long-term sales contracts with the
customers, exposing the same to the risks of bleak revenue visibility.
Furthermore, 80% of total revenues are earned from customers outside
India and are denominated in foreign currency. Although the company
follows prudent hedging policies, cancellation of any such order would
cause significant losses to the company.

Dependence on limited number of customers

A significant proportion of SPALs revenues have historically been
derived from a limited number of customers. Over the last five financial
years, top five customers contribute more than 80% of the total exports
revenues. Furthermore, SPALs customers are predominantly based in the
UK, which is currently facing an adverse scenario relating to Brexit.

Manufacturing garments Labour intensive business

For FY16, SPAL had 9147 full-time employees at its garments division and
36 full-time employees at its retail division. The recent textile policy has
indicated an increase in minimum wages to employees. However, with
majority of the strikes and lockouts experienced in the textile space, the
labour intensiveness of the business leads us to maintain a cautious
stance. The key to margins are utilisation levels and higher production.
Any impact on the same would drastically change the profitability
scenario of the company.

Pledging of shares by promoter.

The promoter has approximately 4 million shares pledged in favour of the
State Bank of Mysore. A default would make State Bank of Mysore
eligible to enforce the pledge over such collateral and take ownership of
the collateral and sell the pledged equity shares to third parties,
eventually diluting the promoters stake.

Sluggish growth; pricey valuations

Operating revenues of SPAL grew at a CAGR of 7% in FY12-16 to | 533
crore. As majority of the growth is export oriented, revenues stay
impacted by a subdued global trade scenario. Simultaneously, growth of
peers to the likes of Kitex, KPR mills and Siyarams are 20%, 15% and
15%, respectively. The competitors are trading at similar to lower
multiples compared to current asking multiple for SPAL.

ICICI Securities Ltd | Retail Equity Research

Page 6

Peer Comparison
Exhibit 10: Valuation comparison with peers
CMP M Cap
Company
S P Apparels (higher price band)
Kitex Garments

(|)
268

EPS (|)

(| Cr)

FY14

674

2.6

FY15

P/E (x)

EV/EBITDA (x)

FY16

FY14

FY15

FY16

FY14

3.9 13.7 *

19.4

0.0

FY15

P/B (x)

FY16

FY14

0.0 10.2*

NM

FY15

D/E (x)
FY16

NM 4.9*

RoE(%)

FY14

FY15

FY16

FY14

2.8

2.2

1.7

7.1

FY15

FY16

9.8 26.2 *

495 2,347

11.9

20.5

23.3

7.5

26.2

18.8

4.1

13.6

9.3

2.4

9.7

5.7

0.8

0.7

0.4

38.7

45.0 35.5

KPR Mills

1,105 4,173

33.2

36.6

39.6

3.6

13.1

21.0

2.8

6.5

9.5

0.6

2.1

3.2

1.3

1.0

0.8

18.8

19.9 20.7

Siyaram Silk Mills

1,000

66.5

82.0

93.0

4.3

10.7

11.8

3.7

5.9

7.4

0.7

1.9

2.0

0.9

0.8

0.7

18.6

19.6 17.5

941

*FY16 ratios on a post IPO basis

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Page 7

Financial Summary (Consolidated)

Exhibit 11: Profit & Loss Statement
(Year-end March)

FY12

FY13

FY14

FY15

FY16

Revenue
Growth (%)
Total Raw Material Costs
Purchase of Traded Goods
Employee Cost
Other Operaitng Expense
Total Expenditure
EBITDA
Growth (%)

400.6

428.5
7.0
170.0
0.0
78.6
124.9
373.5
55.0
-8.7

450.9
5.2
206.9
0.0
76.1
104.0
387.0
63.9
16.2

472.6
4.8
206.2
0.0
100.0
97.4
403.7
68.9
7.9

532.8
12.8
204.2
0.0
121.1
122.2
447.5
85.3
23.8

16.3
43.9
40.3
1.0
0.0
4.6
-4.5
9.0
0.0
9.0

16.9
38.1
34.3
0.4
0.0
4.1
2.1
2.0
0.0
2.0

17.6
46.2
35.6
1.2
0.0
11.9
5.4
6.5
0.0
6.5

20.0
48.9
31.2
6.7
0.0
24.4
14.6
9.8
0.0
9.8

20.1
65.2
25.3
4.9
0.0
44.9
10.7
34.1
0.0
34.1

FY12

FY13

FY14

FY15

FY16

16.8
20.0
41.3
78.1
142.4
0.0
0.0
10.2
308.6
164.5
89.9
50.5
3.6
539.3

16.8
20.0
43.7
80.5
100.1
0.0
0.0
12.2
337.8
162.6
110.5
62.0
2.6
530.5

16.8
27.2
50.3
94.4
92.0
0.0
0.0
17.2
321.6
172.8
107.5
37.2
4.1
525.3

16.8
27.2
59.3
103.3
72.8
1.5
0.0
31.7
310.4
156.6
121.5
23.4
8.9
519.7

17.1
20.0
95.6
132.7
67.9
4.1
0.0
37.2
319.4
162.7
116.8
29.5
10.4
561.2

275.8
26.5
302.3
5.9
0.1
9.0
0.0
222.1
122.9
56.8
5.8
0.9
35.7
0.0
539.3

293.3
0.0
293.3
5.9
0.1
11.2
0.0
220.1
125.7
50.9
6.1
0.9
36.3
0.2
530.5

278.9
0.0
278.9
5.9
0.0
15.8
0.0
224.7
125.3
54.2
14.4
0.7
29.3
0.8
525.3

269.5
0.0
269.5
5.9
0.5
23.2
0.0
220.6
107.3
74.3
6.8
0.3
31.5
0.4
519.7

271.1
3.6
274.6
5.9
0.4
29.0
0.0
251.3
127.5
81.6
11.1
0.2
30.7
0.3
561.2

Depreciation
EBIT
Interest
Other Income
Exceptional item
PBT
Tax
PAT
Minority Interest
Reported PAT

150.6
0.0
74.5
115.3
340.4
60.2

Source: RHP, ICICIdirect.com Research

Exhibit 12: Balance Sheet

(Year-end March)
Source of Funds
Equity Capital
Preference Capital
Reserves & Surplus
Shareholder's Fund
Long Term Borrowing Funds
Long Term Provisions
Other long term liabilities
Deferred tax liabiity
Current Liabilities
Short Term Borrowing
Trade Payables
Other current liabilities
Short term provisions
Source of Funds
Application of Funds
Net Block (Incl Intangibles)
Capital WIP
Total Fixed Assets
Goodwill on consolidation
Non-current investments
Long Term loans & advances
Other non-current assets
Current Assets
Inventories
Trade Recievables
Cash & Bank Balances
Current Investments
Short Term Loans & Advances
Other Current Assets
Application of Funds

Source: RHP, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Page 8

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

Page 9

Disclaimer
ANALYST CERTIFICATION

We Ankit Panchmatia, PGDM (Finance) and Bharat Chhoda, MBA (Finance); 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 Indias 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 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 Ankit Panchmatia, PGDM (Finance) and Bharat Chhoda, MBA (Finance); 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 Ankit Panchmatia, PGDM (Finance) and Bharat Chhoda, MBA (Finance); 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.

ICICI Securities Ltd | Retail Equity Research

Page 10