Edelweiss Structured Product Offerings - PWA

Valid for Feb’24

Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws.
 About MLD Desk

Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws.
 About MLD Desk

2008 ~23,640 Cr. ~7,300 Cr. ~16,340 Cr.

Started Principal Paid back
Gross Issuances* Live AUM
MLD Issuances on or before time*

~3,500 Cr. ~11.42%^ IRR

Avg. Debt IRR – 9.50%
600 Cr. 12,500+ Clients

Returns generated Avg. IRR Across Largest single client Served since
for our clients Equity MLD variants* Since inception inception

*Values since inception as on Mar’23

Back-testing/past performance is not an indication of future returns.

3
Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws.
 Why LEAP Index
 Investing thesis
 Management team & track record
 Index construction

Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws.
 Most mainstream equity offerings’ returns are benchmark hugging

Large-cap MF vs Nifty 50 returns

71%
66%

38%
27% 23%19%
20%18%
14%11% 15% 12%10%
7% 7% 10%10% 10%

-7% -9%
-5% -9%
-24%-26%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 CAGR - 2011-
21

Large-cap MF Nifty 50

Providing limited opportunities to ‘leap’ beyond index returns for your portfolio

Source: NSE India, Edelweiss Research, AMFI. Large-cap returns are basis category average for the respective year for all active schemes 5
Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws.
 Offering the agility to identify growth themes and participate in different winners within each cycle

21%
19% CAGR Mar'11-Mar'14
16% 15%

7% 7%
4% 4%
0%

Cons. Staples IT Health Care Cons. Discr. Comm. Services Nifty 50 Financials Materials Energy RE Industrials Utilities
-2%
-6%
-10%

CAGR - Mar'14-Mar'17
29% 27% 25%
22% 22% 20% 19%
15% 13% 13%
11%

Cons. Discr. Health Care Financials Energy Materials Industrials Cons. Staples Utilities IT Nifty 50 RE

Early identification of growth themes that outperform diversified indices by 2-4x on average
Source: NSE India
6
Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws.
 Building blocks: investment objectives and framework

1 Invest in structural growth companies 2 Stay aligned to evolving trends 3 Manage risk

FUNDAMENTALS GLOBAL MARKETS

Research driven processes: Monitor macro elements

Captive financial models to impacting Indian equities
project performance
FRAME
WORK
Rebalance portfolio and
Corporate connect + Analyst
hands-on risk mitigation basis
community + Channel checks
changing environment

ECOSYSTEM ACTIVE MANAGEMENT

7
Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws.
 Designed and managed by a team that’s been there and done a lot of that

AJAY VORA NIKHIL RANKA

EXECUTIVE VICE PRESIDENT SENIOR VICE PRESIDENT
Nuvama Asset Management Nuvama Asset Management

 Over 15 years of experience in Fundamental Research and  Over 15 years of experience in Fund Management,
Fund Management Research and Investments
 Fund manager for EDGE Fund with a successful track record  Fund Manager for EDGE fund with a Successful track
navigating the recent geo-political crises record of building portfolio by marrying derivatives with
fundamentals
 Headed the equities desk at the Treasury of India’s largest
conglomerates: Reliance Industries  Scaled the equity AuM at Reliance Industries’ Treasury
to over USD 1bn
 Scaled equity AUM from USD200mn to USD1bn over a
period of 5 years

8
Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws.
 Leading the creation of a dynamically managed proprietary LEAP index

Growth-focused, actively managed equity index

by Nuvama Asset Managemnet

UNIVERSE
Investment manager has
flexibility to dynamically
manage index from current
universe of ~120 stocks
STOCK SELECTION
Construct an index with
at least 70% large cap
and upto 30% mid &
small cap stocks
 Economic moats
 Competitive edge  Quality management
 Management & governance DIVERSIFICATION  High earnings growth
history Diversified portfolio of visibility
 Cost structure & profitability ~25-30 stocks  High free cash flow
 Valuation & intrinsic value Stock limits: Minimum  Low leverage
weight 2%, Maximum  High return ratios
weight 8% CONTROL  Reasonable valuations
Index maintained by CARE
EDGE – a subsidiary of
India’s premier rating agency

9
Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws.
 LEAP Portfolio – Jan’24
A look at our index composition PAT Growth
Cash, 26%
Mid Cap,
0% Financials 33% 21%
4% Cons. 15% 16%15%
Consumer… 12%
Discretionary 10%
Energy 10%
Large
cap, Materials 8%
96% FY23 FY24E FY25E
Cons.
Consumer… 6%
Staples Nifty LEAP
Top 10 index constituents
8.3%
7.8%
PE Ratio
27.9
25.5 23.2 22.1
6.2%
20.0 19.2
5.0%
3.9% 3.9% 3.8% 3.5% 3.5% 3.4%

FY23 FY24E FY25E

HDFC BNK RELIANCE LT ICICI BNK KOTAK ULTRATECH FEDERAL SUN HERO AXIS BNK Nifty LEAP
BANK BANK PHARMA MOTO
10
Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws.
 LEAP EQUITY OFFERINGS

Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws.
 LEAP EQUITY OFFERINGS

Edelweiss Structured Product

Offerings

LEAP Offerings

LEAP AWE
LEAP AWE+ PP LEAP AWE+ NPP LEAP BETA LEAP Equity Booster NPP
2 year

62% absolute return2 if

51% absolute return2 if underlying gives 10% 60% absolute return2 if
underlying gives 10% absolute return underlying gives abs return
29% absolute return2 if absolute return more than 15%
underlying gives 5%
absolute return or 1x* uncapped on the 1.65x* of the equity
or 1x* uncapped on the upside if underlying gives 30% absolute return2 if
upside
upside if underlying gives more than 62% return over underlying gives abs return
with Principal more than 51% return over 3 3 years between 7% to 14.99%
with the same 1x
Protection1 on the years;
downside
downside with the same 1x with principal protection
with Principal Protection1 on downside risk as in upto fall of -25%
the downside equities

!Principalprotection is to the extent of the Face Value of the underlying investment in Market Linked Debenture (MLD) and subject to the credit risk of the Issuer
2Realized return on investment may differ depending on the investment timing, due to the difference in purchase value and face value of the security on the date of investment; Return is is subject to the credit Risk of the Issuer
*Participation is basis face value

Please refer to specific products for all disclaimer 12

Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws.
 LEAP AWE 2 Year

Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws.
 LEAP AWE 2 Year Principal Protected

Grow Without Downside Risk LEAP - AWE 2 Year

• Absolute coupon of 29% if

Make returns1 of upto 29% Your Principal is protected2 on
underlying gives 5% return
if underlying gives absolute the downside
• Complete Principal Protection2 on
5% return the downside

1 Realized return on investment may differ depending on the investment timing, due to the difference in purchase value and face value of the security on the date of investment
2 Principal protection is at maturity; to the extent of face value and subject to credit risk of the issuer
* Alpha generation/upside participation is basis Face Value
14
 How Leap AWE 2 Year works

LEAP index Index Product Investment Redemption Product

Scenarios
level Return Return3 at FV Value IRR5

2200 100% 29.00% 1,00,000 1,29,000 12.0%

Rising market 1980 80% 29.00% 1,00,000 1,29,000 12.0%
1650 50% 29.00% 1,00,000 1,29,000 12.0%
1419 29% 29.00% 1,00,000 1,29,000 12.0%
1210 10% 29.00% 1,00,000 1,29,000 12.0%
1155 5% 29.00% 1,00,000 1,29,000 12.0%
Stable market
1133 3% 17.40% 1,00,000 1,17,400 7.4%
1111 1% 5.80% 1,00,000 1,05,800 2.5%

Assumed entry
level4 1100 0% 0% 10,00,000 10,00,000 0.00%

Principal Protection
990 -10% 0.00% 1,00,000 1,00,000 0.0%
Falling market
880 -20% 0.00% 1,00,000 1,00,000 0.0%
550 -50% 0.00% 1,00,000 1,00,000 0.0%
0 -100% 0.00% 1,00,000 1,00,000 0.0%
3 Product returns showcased are for illustrative purposes only. The returns are pre-tax & post-cost
4 Entry level is average of LEAP Index Level on Primary Trade Date & the Nifty F&O expiry of next three months
5 IRR is only for illustrative purpose.

Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws. 15
 Strategy details

Leap AWE 27M Principal Protected

Issuer Edelcap Securities Ltd (100% Subsidiary Of ECAP Equities Ltd)
Underlying benchmark LEAP Index - Managed by Nuvama Asset Management
Secured Yes, with a minimum 1x charge created with Debenture Trustee
Credit Rating Rated PP – MLD – (A+)*
Principal protection Principal is protected at maturity to the extent of face value
Listing Unlisted
Tenor of Investment 2.25 Years
Market Position Tenor 2 Years
Average of closings level of the underlying index as on primary issuance date and next two months F/O
Entry Level
expiries
Average of closings level of the underlying index as on F&O expiry of 22nd month to 24th month from primary
Exit Level
issuance date
LEAP Index Performance Exit level/Entry level – 1
If Underlying return between 0% to 5%: 5.80x of the underlying performance
Product returns1 If Underlying return > 5%: Fixed coupon of 29%
If Underlying returns <0%: Principal Protection

*Edelcap Securities PP MLDs are rated as CRISIL A+; ACUITE A+ & CARE A+
16
 LEAP AWE+ Principal Protected

Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws.
 LEAP AWE+ Principal Protected

Grow Accelerate LEAP - AWE Plus PP

• Absolute coupon of 51% if

Make returns1 of upto 51% Uncapped upside* if underlying
underlying gives 10% return
if underlying gives absolute returns more than 51%
• 1x* uncapped upside; if underlying
10% return With Principal protection2 on return is more than 51%
the downside • Complete Principal Protection2 on
the downside

1 Realized return on investment may differ depending on the investment timing, due to the difference in purchase value and face value of the security on the date of investment
2 Principal protection is at maturity; to the extent of face value and subject to credit risk of the issuer
* Alpha generation/upside participation is basis Face Value
18
 How Leap AWE+ Principal Protected works

LEAP index Index Product Investment Redemption Product

Scenarios
level Return Return3 at FV Value IRR5

2200 100.0% 100.00% 1,00,000 2,00,000 21.89%

Rising market 1980 80.0% 80.00% 1,00,000 1,80,000 18.28%
1650 55.0% 55.00% 1,00,000 1,55,000 13.34%
1623 51.0% 51.00% 1,00,000 1,51,000 12.50%
1210 10.0% 51.00% 1,00,000 1,51,000 12.50%
1177 7.0% 35.70% 1,00,000 1,35,700 9.11%
Stable market 1155 5.0% 25.50% 1,00,000 1,25,500 6.70%
1111 1.0% 5.10% 1,00,000 1,05,100 1.43%

Assumed entry
1100 0% 0% 1,00,000 1,00,000 0.00%
level4

Principal Protection
990 -10% 0.00% 1,00,000 1,00,000 0.00%
Falling market
880 -20% 0.00% 1,00,000 1,00,000 0.00%
550 -50% 0.00% 1,00,000 1,00,000 0.00%
0 -100% 0.00% 1,00,000 1,00,000 0.00%
3 Product returns showcased are for illustrative purposes only. The returns are pre-tax & post-cost
4 Entry level is average of LEAP Index Level on Primary Trade Date & the Nifty F&O expiry of next three months

5 IRR is only for illustrative purpose.

Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws. 19
 Strategy details

Leap AWE+ Principal Protected

Issuer Edelcap Securities Ltd (100% Subsidiary Of ECAP Equities Ltd)
Underlying benchmark LEAP Index - Managed by Nuvama Asset Management
Secured Yes, with a minimum 1x charge created with Debenture Trustee
Credit Rating Rated PP – MLD – (A+)*
Principal protection Principal is protected at maturity to the extent of face value
Listing Unlisted
Tenor of Investment 3.5 Years
Market Position Tenor 3 Years
Average of closings level of the underlying index as on primary issuance date and next five months F/O
Entry Level
expiries
Average of closings level of the underlying index as on F&O expiry of 31st month to 36th month from primary
Exit Level
issuance date
LEAP Index Performance Exit level/Entry level – 1
If Underlying return between 0% to 10%: 5.1x of the underlying performance
Product returns1 If Underlying return > 51%: 1x of the underlying performance (uncapped)
If Underlying returns <0%: Principal Protection
*Edelcap Securities PP MLDs are rated as CRISIL A+; ACUITE A+ & CARE A+;
20
 LEAP AWE+ Non-Principal Protected

Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws.
 LEAP AWE+ Non-Principal Protected

Grow Accelerate LEAP - AWE Plus NPP

Make returns1 of upto 62% Uncapped upside* if underlying • Absolute coupon of 62% if
if underlying gives absolute returns more than 62% underlying gives 10% return
10% return With similar downside2 risk as in • 1x* uncapped upside; if underlying
direct equities return is more than 62%
• Same downside2 risk as in direct
equities

1 Realized return on investment may differ depending on the investment timing, due to the difference in purchase value and face value of the security on the date of investment
2 Loss on downside is basis face value and similar to direct exposure in equities
* Alpha generation/upside Participation is basis Face Value

22
 How Leap AWE+ Non Principal Protected works

LEAP index Index Product Investment Redemption Product

Scenarios
level Return Return3 at FV Value IRR5

2200 100% 100.0% 1,00,000 2,00,000 21.90%

Rising market 1980 80% 80.0% 1,00,000 1,80,000 18.29%
1815 65% 65.0% 1,00,000 1,65,000 15.38%
1375 25% 62.0% 1,00,000 1,62,000 14.78%
1210 10% 62.0% 1,00,000 1,62,000 14.78%
1177 7% 43.4% 1,00,000 1,43,400 10.85%
Stable market 1155 5% 31.0% 1,00,000 1,31,000 8.02%
1111 1% 6.2% 1,00,000 1,06,200 1.73%

Assumed entry
1100 0% 0% 1,00,000 1,00,000 0.00%
level4

990 -10% -10.0% 1,00,000 90,000 -2.97%

1x downside
Falling market
880 -20% -20.0% 1,00,000 80,000 -6.18%
550 -50% -50.0% 1,00,000 50,000 -17.97%
0 -100% -100.0% 1,00,000 0 -100.00%
3 Product returns showcased are for illustrative purposes only. The returns are pre-tax & post-cost
4 Entry level is average of LEAP Index Level on Primary Trade Date & the Nifty F&O expiry of next three months

5 IRR is only for illustrative purpose.

Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws. 23
 Strategy details

Leap AWE+ Non Principal Protected

Issuer Edelcap Securities Ltd (100% Subsidiary Of ECAP Equities Ltd)
Underlying benchmark LEAP Index - Managed by Nuvama Asset Management
Secured Yes, with a minimum 1x charge created with Debenture Trustee
Principal protection Principal is not protected
Listing Unlisted
Tenor of Investment 3.5 Years
Market Position Tenor 3 Years
Average of closings level of the underlying index as on primary issuance date and next three months F/O
Entry Level
expiries
Average of closings level of the underlying index as on F&O expiry of 31st month to 36th month from primary
Exit Level
issuance date
LEAP Index Performance Exit level/Entry level – 1
If Underlying return between 0% to 10%: 6.2x of the underlying performance
Product returns1 If Underlying return > 62%: 1x of the underlying performance (uncapped)
If Underlying returns <0%: 1x of the underlying performance

*Edelcap Securities Ltd. is rated as CRISIL A+; ACUITE A+ & CARE A+

24
 LEAP BETA

Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws.
 LEAP - Beta: A market linked debenture based on a growth-focused actively managed index offering higher alpha to accelerate your returns

Grow Accelerate LEAP - Beta

Positive returns1 on 165% participation* LEAP – Beta offers

LEAP index: on positive returns1 with similar 1.65x* of the equity upside with the
165%* of the index returns, downside2 as in direct equities same 1x downside
uncapped

1 Realized return on investment may differ depending on the investment timing, due to the difference in purchase value and face value of the security on the date of investment
2 Loss on downside is basis face value and similar to direct exposure in equities
* Alpha generation/upside participation is basis Face Value

26
Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws.
 How Leap Beta works

LEAP index Index Product Investment Redemption Product

Scenarios
level Return Return3 at FV Value IRR5

2200 100% 165.0% 1,00,000 2,65,000 32.11%

Rising market 1980 80% 132.0% 1,00,000 2,32,000 27.18%
1760 60% 99.0% 1,00,000 1,99,000 21.73%
1540 40% 66.0% 1,00,000 1,66,000 15.58%
1430 30% 49.5% 1,00,000 1,49,500 12.18%
Stable market 1320 20% 33.0% 1,00,000 1,33,000 8.49%
1210 10% 16.5% 1,00,000 1,16,500 4.46%

Assumed entry
level4 1100 0% 0% 1,00,000 1,00,000 0.00%

990 -10% -10.0% 1,00,000 90,000 -2.97%

1x downside
Falling market
880 -20% -20.0% 1,00,000 80,000 -6.18%
550 -50% -50.0% 1,00,000 50,000 -17.97%
0 -100% -100.0% 1,00,000 - -100.00%

3 Product returns showcased are for illustrative purposes only. The returns are pre-tax & post-cost
4 Entry level is average of LEAP Index Level on Primary Trade Date & the Nifty F&O expiry of next three months
5 IRR is only for illustrative purpose.

27 Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws.
Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws.
 Strategy details

LEAP Beta
Issuer Edelcap Securities Ltd (100% Subsidiary Of ECAP Equities Ltd)
Underlying benchmark LEAP Index - Managed by Nuvama Asset Management
Secured Yes, with a minimum 1x charge created with Debenture Trustee
Principal protection Principal is not protected at maturity
Listing Unlisted
Tenor of Investment 3.5 Years
Market Position Tenor 3 Years
Participation Rate (PR) 165% of underlying LEAP index performance on the upside basis face value
Entry Level Average of closings level of the underlying index as on primary issuance date and next three months F/O expiries
Average of closings level of the underlying index as on F&O expiry of 33rd month to 36th month from primary
Exit Level
issuance date
LEAP Index Performance Exit level/Entry level – 1

Product returns1 Max(0, PR*Underlying Performance) + Min(0, Underlying Performance)

*Edelcap Securities Ltd. is rated as CRISIL A+; ACUITE A+ & CARE A+;

28
Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws.
 LEAP Equity Booster - NPP

Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws.
 LEAP Equity Booster - NPP

Grow PP up to fall of 25% LEAP – Binary

• Abs coupon of 60% if underlying

Make returns1 of 60% • Principal Protection till fall of
gives 15% or more return
if underlying gives absolute 25%; • Principal Protection2 on the
15% or more return • If underlying performance is downside upto -25%
-25.01% product returns -30%, • If underlying performance is -
thereafter loss accrues at 0.93x 25.01% product returns -30%,
thereafter loss accrues at 0.93x

1 Realized return on investment may differ depending on the investment timing, due to the difference in purchase value and face value of the security on the date of investment
2 Loss on downside is basis face value
3 Principal protection is at face value and at maturity
30 * Alpha generation/upside Participation is basis Face Value

Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws.
 How Leap Equity Booster works

LEAP index Index Product Investment Redemption Product

Scenarios
level Return Return3 at FV Value IRR5

1650 50% 60.00% 1,00,000 1,60,000 14.37%

Rising market 1540 40% 60.00% 1,00,000 1,60,000 14.37%
1375 25% 60.00% 1,00,000 1,60,000 14.37%
1265 15% 60.00% 1,00,000 1,60,000 14.37%
1210 10% 30.00% 1,00,000 1,30,000 7.78%
Stable market 1177 7% 30.00% 1,00,000 1,30,000 7.78%
1155 5% 0.00% 1,00,000 1,00,000 0.00%

Assumed entry
level4 1100 0% 0% 1,00,000 1,00,000 0.00%

825 -25% 0.00% 1,00,000 1,00,000 0.00%

Falling market
824.89 -25.01% -30.01% 1,00,000 69,990 -9.69%
770 -30% -34.67% 1,00,000 65,330 -11.45%
550 -50% -53.33% 1,00,000 46,670 -19.56%

3 Product returns showcased are for illustrative purposes only. The returns are pre-tax & post-cost
4 Entry level is average of LEAP Index Level on Primary Trade Date & the Nifty F&O expiry of next three months
5 IRR is only for illustrative purpose.

31
Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws.
 LEAP Equity Booster – Strategy details
LEAP Binary
Issuer Edelcap Securities Ltd (100% Subsidiary Of ECAP Equities Ltd)
Underlying benchmark LEAP Index - Managed by Nuvama Asset Management
Secured Yes, with a minimum 1x charge created with Debenture Trustee
Principal protection Principal is not protected at maturity
Listing Unlisted
Tenor of Investment 3.5 Years
Market Position Tenor 3 Years
Entry Level Average of closings level of the underlying index as on primary issuance date and next three months F/O expiries
Average of closings level of the underlying index as on F&O expiry of 33rd month to 36th month from primary
Exit Level
issuance date
Binary 1 107% of the initial fixing level
Binary 2 115% of the initial fixing level
If LEAP Abs returns 0% - 6.99%; Principal protection
If LEAP Abs returns 7% - 14.99%; 30% Abs coupon
If LEAP Abs returns more than 15%; 60% Abs coupon
Product returns1
If LEAP Abs returns 0% to -25%; Principal protection
If LEAP Abs returns -25.01%; -30% Abs coupon (1.2x of downside)
If LEAP Abs returns more than -25.01%; the loss accrues at 0.93x
*Edelcap Securities Ltd is rated as CRISIL A+; ACUITE A+ & CARE A+;
32
Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws.
 Risk factors

 MLDs are issued for a fixed tenor with no

interim exit options for the investor built in.
Liquidity
 There is no assurance that liquidity will be
Risk
available on the same if there are no active
 Rise and fall in the interest rates buyers and sellers.
Interest influences the valuation of debt
Rate Risk securities, which may affect the
value of the investment

 Principal amount, and any other amounts

that maybe due in respect of the debentures
is subject to the credit risk of the Issuer
Repayment  In the event of bankruptcy or similar
Risk
proceedings, the due amount may not be
made or may be substantially reduced or
delayed

*For detailed information about the risks mentioned above and other risks, please refer to the offer document
33
Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws.
About the Issuer  Group Structure
 Functional Roles
 Key Business Matrix
 Core Asset Mix
 About the issuer: Edelcap Securities Ltd, a 100% subsidiary of ECAP Equities Ltd

Edelweiss Financial Services Ltd.

(EFSL)

Asset Asset Balance sheet

Credit Insurance
Management Reconstruction Management Unit
(BMU)

Ecap Equities Limited

(100% subsidiary of EFSL)

Edelcap Securities Ltd

(100% subsidiary of ECAP Eq Ltd)

Edelcap Securities Ltd is the core trading entity of Edelweiss Group

*Data as of Q2 FY24
35
Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws.
 More about the issuer: Major functional roles

Investments Arm for the Treasury

Manages the Treasury’s proprietary investments, holding
company for Group’s major subsidiaries

Liquidity Management
Edelcap Invests in high quality liquid assets & maintains the on-tap
liquidity buffer for the Group’s balance sheet

Corporate Investments
Supports Corporate Group Investments across businesses

Being the subsidiary of the treasurer of the group, Edelcap is the core trading entity at a group level

36
Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws.
 Core asset mix

Equity Investments Rs. 273 Cr.

in Subsidiaries (~42.63%)

Rs. 262 Cr.

Investments Prop Investments
(~40.87%)

Rs. 106 Cr.

Other Assets
(~16.50%)

*Data as of Q2 FY24
37
Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws.
 Summarised Balance Sheet

Assets Book value Intrinsic Value

Liquid Cash in hand 33 33

Trading Assets 262 262
Stake in Group Companies 273 413
Tax and other assets 72 72
Assets Total 640 780

Liabilities Book value

Loans from Group Companies 230
Other liabilities 10
Equity 400
Liabilities Total 640

Above data as of Sep 23

*Above Numbers have been rounded up
38
Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws.
 Details of Business Stakes

Businesses Valuation (Cr) Edelcap Stake Book Value (Cr) Intrinsic Value (Cr)

ERFL 4000 70% 238 282

Allium Finance Pvt Ltd 1,300 15% 13 19

EARC 2,250 5% 22 112

Edelcap – Intrinsic Value of Business Stake 273 413

Above data as of Sep 23

*Above Numbers have been rounded up
39
Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws.
 P&L at a glance

P&L Q2 FY24 FY23

Interest income 6 16
Fair Value Gains 63 22
Other Income 1 0
Total Revenue 70 38

Finance cost 13 4
Other cost 32 76
Expenses Total 45 80

Profit Before Tax 25 (42)

Deferred Tax 6 0
Profit After Tax 19 (42)

Above data as of Sep 23

*Above Numbers have been rounded up
40
Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws.
 Key Credit Matrix - Edelcap Securities Ltd.

LEVERAGE
0.58x
(External Debt): Rs. 230 Cr. : Rs. 400 Cr.
(Equity + Internal borrowings)

NETWORTH Rs. 400 Cr

CURRENT RATIO 1.44x

(Current Assets) : Rs. 339 Cr. : Rs. 235 Cr.
(Current Liabilities)

PARENTAGE 100%
Subsidiary of ECAP Eq Ltd

*Data as of Q2 FY24 41
Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws.
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