Investment Strategy November15

Strictly Private and Confidential

Contents
Key Highlights

Our View

Investment recommendations

Annexure I Market Charts

Annexure II Product Details

Key Highlights

Favorable macros, Sluggish micros and Global excess liquidity

Macro environment in India remain favorable:
Commodity prices have significantly corrected with crude leading at below $50 per barrel
Fiscal deficit has narrowed to 68.1% in April-September 2015, vs 82.6% last year
Inflation is on easing path with CPI inflation at 4.4% remaining well below Jan 2016 target of 6%
Industrial production has been picking up with latest reading expanding 6.4% YoY in August

While micros still remain challenging:

Top line growth remains muted for corporate since past few quarters
Investment cycle has not picked up especially from private sector
Nominal Bank credit growth remain weak around 10% YoY
Consumer discretionary spending (non durables) has contracted for second consecutive month,
first since 2009
Globally reserve banks are easing liquidity to fight slowing global growth:
Chinese central bank have reduced interest rates to 4.35%, sixth cut in a year
European Central Bank signalled it would expand its 1.1 tn quantitative easing programme in
December
Japan maintained its current pace of $ 660 billion asset purchase program

We maintain our bullish view on equities for long term and expect interest rates to come down further
by 75-100 bps in next 18-24 month. However, markets will remain range bound in the medium term
with yields to remain between 7.50 to 7.60% for next 3-6 month.

Our View

Strategy
Debt:

Equity:

We recommend investors to remain invested in We recommend investors to increase duration in the

equities. Markets will give opportunities for portfolio.
increasing allocation.
Duration to capitalize on southward moving interest
Managed products like forefront AIFs and PMS to rates
bring discipline and long term orientation
Gilt Funds
Asset allocation product to have balanced approach in
Sovereign and Corporate bonds
portfolio allocation
Perpetual bonds
Invest in principal protected structured products to
tide through volatility with higher participation

Accrual through
Tax Free bonds/Preference shares
Liquidity Management Arbitrage Funds

Buy quality large cap names

Arbitrage / Enhanced

Selective high yield NCDs (with no underlying

commodity or metals sector exposure)
Key triggers to look forward to Pick up in corporate Key triggers to look forward to US fed rate decision
earnings, uptick in domestic consumption and passing of surprise, global growth environment, domestic inflation
rate cuts by banks
numbers

Investment Recommendations

Investment Recommendation
Asset Class

Period

Investment Options
Direct Equity: Top Picks - Multi cap focus, top down stock selection product with focus on
fundamentals and alpha generation
AIF: Forefront Equity AIF Large cap focused, with downside protection through dynamic
absolute return strategy

Structured Products: SP Ideas Participate through principal protected, high participation ideas
to gain from recent market correction

Equity

Long Term

PMS: Accura PMS Managed stock portfolio with bottom up approach & focus on alpha
generation
Asset allocation to allocate capital considering risk and return profile based on model portfolio
recommendation
Large Cap : Birla SL Frontline Equity Fund, Franklin India Prima Plus
Mid Cap Funds: HDFC Mid Cap Opportunities, Franklin India Prima
Sector Funds: Reliance Banking Fund, Franklin Build India Fund

Liquid Funds: Reliance Liquidity & DWS Cash Opportunities Fund

Short Term

Arbitrage Funds: Edelweiss Arbitrage & ICICI Pru Equity Arbitrage

PMS: Forefront Enhanced Arbitrage PMS for Treasuries to part 3 month+ liquid

Fixed Income
Long Term

Duration: ICICI Pru Long Term Gilt Fund, IDFC Gsec Invest, Reliance Gilt Securities Fund
Perpetual Bonds, Preference Shares
Accrual: Edelweiss fixed return structures, Other high yielding corporate bonds/NCDs (in
corporate with no underlying commodity or metals sector exposure)

Short Term Up to 1 year. Long Term - over 1 year

Private and Confidential

Model Portfolio Allocation

AGGRESSIVE

BALANCED

CONSERVATIVE

EQUITY

70%

EQUITY

50%

Large Cap

20%

Large Cap

15%

Mid Cap

30%

Mid Cap

Structured Product

10%

Thematic

10%

FIXED INCOME

EQUITY

10%

15%

Large Cap

3.5%

Structured Product

10%

Mid Cap

3.5%

Thematic

10%

20%

FIXED INCOME

40%

Accrual

0%

Accrual

10%

FIXED INCOME

90%

Duration

20%

Duration

30%

Accrual

40%

Forefront Asset Allocation

5%

Forefront Asset Allocation

5%

Cash

5%

Cash

5%

Duration

50%

AGGRESSIVE
Portfolio

Structured Product

BALANCED

Benchmark

Portfolio

3%

CONSERVATIVE

Benchmark

Portfolio

Benchmark

Returns*

ITD

Returns*

ITD

Returns*

ITD

Returns*

ITD

Returns*

ITD

Returns*

ITD

EQUITY

3.3%

30.2%

5.0%

11.1%

2.9%

26.7%

5.0%

11.1%

2.8%

41.9%

5.0%

11.1%

FIXED INCOME

1.5%

9.7%

1.6%

8.9%

1.4%

7.5%

1.6%

8.9%

1.3%

9.3%

1.6%

8.9%

OVERALL

2.6%

21.9%

4.1%

10.5%

2.1%

15.6%

3.3%

10.0%

1.4%

10.2%

1.6%

8.9%

*Returns are absolute & are for the period 24th Sep 2015 to 26th Oct 2015. ITD Inception to Date 11th Aug 2011 calculated on CAGR basis.
Benchmark: Aggressive 75% NIFTY & 25% Crisil Composite Index; Balanced - 50% NIFTY & 50% Crisil Composite Index; Conservative - 100% Crisil Composite Index

Private and Confidential

Appendix I Market Charts

Equity

Average

India VIX

FII inflows in Equity

50

2.9
1.0

0.9

Equity FII flows $mn

Oct-15

Apr-15

Cyclicals Average

11

Defensives Average

Oct-15

0
Oct-14

Jun'15

Apr'15

Feb'15

Dec'14

Oct'14

Aug'14

June'14

Apr' 14

Feb' 14

Dec'13

-2.6

Cyclicals
Average, 37.01

10

Oct-13

-2

-3

20
-0.9

Oct'15

-0.1
-1.0

Aug'15

0.0

-1

Oct-14

30

0.1

Oct-12

1.2

Defensives
Average, 36.89

40

Oct-11

1.0

1.41.7

Oct-10

0.4

2.4

Oct-09

1.1

2.8
1.81.9
1.2
1.1 1.3

Oct-08

2.5

Oct' 13

USD bn

3.7

2.9

Oct-07

Average

Cyclical have started catching up with defensive valuations

Oct-06

Apr-14

Oct-15

Oct-14

Oct-13

Oct-11

Oct-10

Oct-09

Oct-08

Oct-07

Oct-06

Oct-05

Oct-04

Oct-03

Oct-02

Oct-01

Oct-00

Oct-99

P/E

Oct-12

Average = 18.62

Oct-13

12

Apr-13

17

Average = 21.93

Oct-12

22

Current = 16.54

Apr-12

27

60
50
40
30
20
10
0
Oct-11

Current = 22.39

Apr-11

32

Current VIX Index

Oct-10

NIFTY P/E lower than earlier peaks, premium to long term average

Debt
Inflation continues downward spiral
13.0
11.0
9.0
7.0
5.0
3.0
1.0
-1.0
-3.0
-5.0

Sep-15,
4.4%

Debt FII flows $mn

Sep-15

Jun-15

Mar-15

Dec-14

Sep-14

Jun-14

Mar-14

CPI

WPI

Credit Spreads narrowing

27-Oct-15

Spread

12

Average

Oct-15

Aug-15

Apr-15

Feb-15

Current = 47

Dec-14

Oct-14

Aug-14

Apr-14

Feb-14

Dec-13

Oct-13

Average= 48

Jun-15

200
150
100
50
0
-50
-100
1
2.5
4
5.5
7
8.5
10
11.5
13
14.5
16
17.5
19
20.5
22
23.5
25
26.5
28
29.5

8.00
7.80
7.60
7.40
7.20
7.00
6.80
6.60

Jun-14

Yields remained stable across the curve

24-Sep-15

Dec-13

Sep-13

Jun-13

Mar-13

Sep-15,
-4.5%
Dec-12

Oct'16

Aug'15

Jun'15

Apr'15

Feb'15

Dec'14

Oct'14

Aug'14

June'14

Apr' 14

Feb' 14

Dec'13

Oct' 13

5
3.7
3.4 3.8
4
2.7 2.8 2.8
2.7
2.5
2.2
3
2.0 1.6
1.7 1.8
2
1.00.5
0.9
0.7
0.3
1
0.0
0
-1
-0.1-0.1
-0.8
-2
-1.3
-1.8
-3 -2.1

Sep-12

FII inflows in debt

Appendix II Product Details

Edelweiss Top Picks

S.No Stock Name

CMP
(INR)

Mkt Cap
(INR Crs)

(INR)

(INR Crs)

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

5,162

27,933

22.2

17.2

NM

NM

20.0

18.7

P/E (X)

EV/EBITDA (X)

Bajaj Finance Ltd.

Coal India Ltd.

322

2,08,566

11.8

9.6

6.8

5.3

41.0

45.9

ICICI Bank Ltd.

272

1,57,510

12.2

10.6

NM

NM

15.0

15.4

Infosys Ltd.

1,145

2,64,884

19.9

16.4

12.1

10.0

23.1

26.0

Larsen & Toubro Ltd

1,471

1,38,925

25.3

18.0

6.5

5.7

11.5

14.5

Tata Motors Ltd

391

1,26,615

7.9

6.7

3.9

3.3

23.7

21.5

Repco Home Finance Ltd.

700

4,386

27.0

21.4

NM

NM

18.1

19.3

Solar Industries India Ltd

3,456

6,328

31.8

23.1

19.3

14.1

25.1

27.4

SRF Ltd.

1,359

7,796

15.4

11.6

9.5

8.0

17.0

19.0

10

Strides Arcolabs Ltd

1,299

7,759

32.0

21.2

20.1

14.0

13.8

13.2

11

Sun Pharma Industries Ltd.

879

2,16,958

36.8

23.7

19.3

15.6

21.3

25.6

Prices updated as on 29th October 2015

NM- Not meaningful
Note: We have exited Motherson Sumi Ltd. WEF 24th September 2015, we currently have 8.3% cash in the portfolio

14

ROE (%)

14

Edelweiss Top Picks: Performance

Edelweiss Top Picks NAV: At INR 310 vs Nifty NAV of INR 156
380
330
280
230
180
130

Oct-15

Sep-15

Jul-15

Aug-15

Jun-15

Apr-15

May-15

Jan-15

Feb-15
Mar-15

Dec-14

Oct-14

Nov-14

Sep-14

Jul-14

Aug-14

Jun-14

Apr-14

May-14

Jan-14

Feb-14
Mar-14

Dec-13

Oct-13

Daily Portfolio NAV

Nov-13

Sep-13

Jul-13

Aug-13

Jun-13

Apr-13

May-13

Jan-13

Feb-13
Mar-13

Dec-12

Oct-12

Nov-12

Sep-12

Jul-12

Aug-12

Jun-12

May-12

Apr-12

Feb-12

Mar-12

80

Daily Benchmark NAV (NIFTY)

Edelweiss Top Picks have delivered a CAGR return of 35% since inception as against Nifty CAGR return of
13%, translating into an outperformance of 22% (p.a)
On an annualized basis (last 12 months), Top Picks have delivered a return of 27% per annum as against
Nifty return of -1.3%.

15

15

Edelweiss Mid-Cap Marvels

S. No.

Stock Name

CMP

Mkt Cap

P/E

EV/EBITDA

ROE (%)

(INR)

(INR Crs.)

FY16E

FY17E

FY16E

FY17E

FY16E

FY17E

1.

Cholamandalam Finance

629

9,619

19.0

15.9

NM

NM

15.7

16.4

NIIT Ltd.

96

1,588

24.5

16.4

22.3

15.6

0.9%

8.4%

3.

Indo Count Industries Ltd

939

3,752

13.3

9.9

8.1

6.0

49.6

42.8

4.

Natco Pharma

2,567

8,942

61.7

53.1

35.4

31

14.70%

14.90%

5.

Pokarna Ltd.

1,175

745

15.2

12.4

8.1

7.3

58.2

43.3

6.

Ratnamani Metals &

Tubes

636

3,004

13.8

11.2

6.9

5.7

20.8

21.5

Note: We have exited Suprajit Engineering Ltd. WEF 14th August 2015, we currently have 14.3% cash in the portfolio

Note: Market CAP (Mkt CAP) and Current Market Price (CMP) were last recorded on 29th October, 2015

16

Edelweiss Midcap Marvels: Performance

Edelweiss Midcap Marvels NAV: At INR 210 vs CNX Midcap Index NAV of INR 125
250
230
210
190
170
150
130
110
90

Daily Benchmark NAV

Edelweiss Midcap Marvels have delivered a CAGR return of 69% since inception (4 June 2014) as
against CNX Midcap Index CAGR return of 17%, translating into an outperformance of 52%

17

17

Oct-15

Sep-15

Sep-15

Aug-15

Aug-15

Jul-15

Jul-15

Jun-15

Jun-15

Jun-15

May-15

May-15

Apr-15

Apr-15

Mar-15

Mar-15

Feb-15

Feb-15

Jan-15

Jan-15

Dec-14

Dec-14

Dec-14

Nov-14

Nov-14

Oct-14

Oct-14

Sep-14

Sep-14

Aug-14

Aug-14

Jul-14

Jul-14

Jul-14

Jun-14

Jun-14

Daily Portfolio NAV

Forefront Alternative Equity Scheme Approach

UNIQUE CORE-SATELLITE APPROACH TO EQUITY INVESTING

18

Forefront Alternative Equity Scheme Performance

Portfolio Update as on 30th September, 2015
Forefront Alternative Equity Scheme Category III AIF Performance (Net Of Fees)
Fund Name
1 year Return (as
on 30th Sep 15)

Forefront
AIF

Nifty

BSL Frontline

ICICI Pru Focused

Bluechip

Franklin India
Bluechip

HDFC Top
200

22.9%

-0.2%

9.1%

5.3%

10.3%

0.0%

*Above performance is net of fees only.

Engineering

Major Holdings
Name
INFY
HDFCBANK

Weight(%)
6.43%
5.94%

Name
HINDUNILVR
HCLTECH

2%

Chemicals

Weight(%)
4.93%
4.91%

4%

Textiles

4%

Energy Products

4%

Energy

5%

Private Banks

6%

Others

BAJAJ-AUTO

5.39%

TORNTPHARM

4.61%

7%

NBFCs

8%

Auto & Comp

SUNPHARMA

5.12%

DRREDDY

4.52%

COALINDIA

4.99%

CASTROLIND

4.45%

8%

Consumer Staples

9%

Software

11%

Pharmaceuticals

14%
0%

19

5%

10%

15%

Structured Product: Enhanced FMP

Specifications
Underlying

CNX Nifty Index

Capital
Guarantee

Principal is protected at maturity

Participation
Tenor

24 months

Maturity

27 months

Entry Level

Trade date

Exit Level

Average of last 3 months

Fixed Coupon

19% (8% IRR)

Max Coupon

24% (10% IRR)

Binary Level

100% of Initial Level

Scenarios

If Final Level > Binary Level = Max Coupon

Payoff

If Final Level <= Binary Level = Fixed

Coupon

FMP replacer : Beats the returns provided by debt options

available in the market like tax free bonds , FDs & FMPs.
High Probability : The product is observed only at the end and
hence the chance of making the full return is very high.
Low Risk : Fixed Coupon (8% IRR) is delivered irrespective of
any market movements.

Binary Coupon If Nifty is above the Binary level in the end then
the investor gets the Max Coupon.
Valid only for the month of Nov 2015. Minimum Investment : 1 Cr

20

Initial
level

Final
level

Nifty
Performance

Product
Return

Annualised
Return

8200
8200
8200
8200
8200
8200
8200
8200
8200
8200

0
6560
7380
8200
8201
9840
11480
13120
14760
16400

-100%
-20%
-10%
0%
0.01%
20%
40%
60%
80%
100%

19%
19%
19%
19%
24%
24%
24%
24%
24%
24%

8%
8%
8%
8%
10%
10%
10%
10%
10%
10%

Structured Product: Golden Cushion

Specifications
Underlying

CNX Nifty Index

Capital Guarantee

Principal is protected at maturity

Participation Tenor

36 months

Maturity

42 months

Entry Level

Average of first 4months

Exit Level

Average of last 4 months

Participation

120%

Coupon

65% Absolute (15.4% IRR)

Decay Range

130%-100% of Initial Level

Payoff

If Final Level >130% of Initial Level, 65%,

Else Max ( 0 , PR*Min (30% ,Nifty
Performance))

Scenarios

High Coupon : Gives a Coupon of 65% on 30% Nifty upside

move. Below 30%, it provided enhanced participation of 1.2
times the Nifty performance.
Downside Protection : Capital is completely protected in case
Nifty falls in the next 3 years. Product maximizes upside and
removes the downside risk.
Outperformance Range : Product returns outperform Nifty
returns up till approx 30% upside move in Nifty. Above 30%,
client get attractive returns of 65% even if Nifty is up even by
0.01% above 30% .
Max Returns : Client makes a return of 15.4% IRR if Nifty is
30% above the entry level in the end
Valid only for the month of Nov 2015. Minimum Investment : 1 Cr

21

Initial
level

Final
level

Nifty
Performance

8200
8200
8200
8200
8200
8200
8200
8200
8200
8200
8200

0
6560
8200
8364
8528
8609
8610
9020
9840
12300
16400

-100%
-50%
-20%
0%
1%
10%
29.99%
30%
50%
80%
100%

Product
Return

Annualised
Return

Principal Protection
at maturity
0%
1.20%
12.00%
36.00%
65.00%
65.00%
65.00%
65.00%

0%
0.34%
3.29%
9.18%
15.38%
15.38%
15.38%
15.38%

Structured Product: Fixed Coupon Ideas

Issuer

Asset
Type

Listed Exchange

Rating

Tenor

ECLF/EFIL

NCD

BSE WDM

PP-MLD
AA by CARE

15 Months

Contingent Product
Annualized Yield
9.00% p.a.

24 Months

9.25% p.a.

40 Months

9.50% p.a.

Suggested Client Profiles

Conservative

Scenario

Risk Return Profile

If Final Nifty > 25 % of Initial level

(Assuming entry level of 7700, Final
Nifty > 1925)
If Final Nifty <= 25 % of Initial level
(Assuming entry level of 7700, Final
Nifty < =1925)

High

Medium

Payoff
Contingent
Product
Annualized Yield
0.00%

Issuance Security Structure

Low
Edelweiss NCD are secured with 100% cover
hypothecated with an independent trustee:

Return
Risk

Low

Medium

High

Alternatives like FMP's have lock - in, where in Edelweiss NCD can
provide liquidity after 3 months
Yields at the time of early exit is dependent on the current lending
rate of Edelweiss

Please Note: Pre Tax Annualized Yield, does not include any costs involved.

22

Charge is created on immovable property

Hypothecation / floating charge on current

assets/ receivables

Independent Trustee for the issuance program

SBICAP Trustee Company

Accura PMS: Portfolio Philosophy

BIG Data Analysis
Rigorous Quarterly Analysis to uncover the strongest businesses with the deepest moat
around them
Extensive Spatial-Temporal Analysis
Millions of data points compared

with strong focus on Fundamentals...

Huge emphasis on Quality of Core Earnings
Superior FCF, RoA and RoNW
Consistency of Top-line and Bottom-line Growth
Strength of Balance Sheet

Solvency and Liquidity Analysis

resulting in superior Risk-adjusted returns

Unique blending algorithm of growth & value parameters while controlling the risk
parameters
Blending lends stability to the portfolio of businesses identified

Portfolio dominated by Low Beta and low volatility stocks thereby maximizing riskadjusted returns
Equal weight portfolio ensures there is never big exposure to any single business or
sector

23

Value

Growt
h

Accura PMS Performance Undisputed Leaders

ACCURA CAPITAL PMS Performance (Net Of Fees)

Absolute Returns
3 Months

6 Months

1 Year

2 Years

3 Years

6%

5%

24%

190%

190%

0%

-2%

0%

95%

52%

3 Months

6 Months

1 Year

2 Years

3 Years

0%

-1%

16%

80%

99%

-5%

-6%

1%

41%

42%

BSE Smallcap

BSE 100
Annualized Returns

BSE Smallcap

BSE 100
Performance Data as on 30th September , 2015
Inception Date: 10th Oct 2011 Pico Power;
19th Sep 2011 Alpha 10

1 Year

2 Years

3 Years

SI

24%

70%

43%

37%

0%

40%

15%

12%

1 Year

2 Years

3 Years

SI

16%

34%

26%

19%

1%

19%

12%

12%

24

Note: Effective April 2015,

Bombay Stock Exchange
has cancelled S&P BSE
SMALL CAP index and
replaced it with a new S&P
BSE SmallCap Index. The
returns presented are for
BSE SMALL CAP Index that
existed until March 2015
and
new
S&P
BSE
SmallCap index is being
used for benchmarking
purposes from April 2015
onwards.

Forefront Asset Allocation PMS

OBJECTIVE AND STRATEGY

A disciplined and emotion free process to make asset allocation decisions

Superior absolute returns with low risk better risk adjusted performance
A complete solution with oversight, monitoring and efficient implementation

Key Terms
Scheme

Forefront Asset Allocation PMS

Custodian

Axis Bank Limited

Regulation

SEBI Portfolio Management Services

(Discretionary)

Investment
Tenure

Recommended tenure of 3 years

Investment
Manager

Forefront Capital Management Private

Limited, Group Company of Edelweiss
Financial Services Ltd

Taxation

At Client Level

25

Forefront Asset Allocation PMS

Conservative

Option

Moderate

Aggressive

Objective

Beating fixed income and

preserving capital

Beating inflation with

capital drawdowns

Exposure

Limited exposure to risky

assets equities and gold

Moderate exposure to risky

assets, diversification via gold /
international equities

Source
of Alpha

Primarily
from
fixed
income asset allocation

low

Equity beating
performance with lower
than equity drawdowns
High static exposure to
risky assets

Primarily from
allocations
between risky and non risky
assets

Primarily from allocations

between equity assets

30%
20%
10%
5%
10%
10%
5%
10%

40%
20%
10%
5%
2.5%
5%
2.5%
15%

Static Allocations
Large Cap
Mid Cap
International Equity
Gold
Income
Accrual
Liquid
Alternatives *

10%
5%
5%
5%
15%
40%
20%
0%

*** Allocation to alternatives only above Rs. 5 crore. Allocations will be scaled accordingly.

26

Forefront Asset Allocation PMS

Performance Net of Fees and Taxes (Jan-2011 to Present)
Backtested Returns for Aggressive and Conservative, Realized Returns for Moderate
Cumulative Performance (As of 30th September, 2015)
Conservative

Moderate

Aggressive

NIFTY

Gold

CRISIL Bond

CAGR (Return)

10.12%

11.52%

13.97%

5.77%

3.69%

8.70%

Standard Deviation

3.50%

5.95%

7.98%

17.08%

18.82%

3.26%

Sharpe Ratio

2.89

1.94

1.75

0.34

0.20

2.67

Year Wise Performance*

Conservative

Moderate

Aggressive

NIFTY

CRISIL Bond

Gold

40%
30%
20%
10%
0%
-10%
-20%
-30%

2011

2012

2013

***Returns stated are provisional unaudited returns as of 30th September 2015 ( Calendar Year Returns). Official returns and
NAVs of the fund are issued as of month end. Past performance is not indicative of future performance. Forefront Alternative
Equity Scheme Returns are net of management fees and expenses and gross of performance fees and taxes

27

2014

2015

Forefront Enhanced Arbitrage PMS

28

Forefront Enhanced Arbitrage PMS

Scheme focuses on generating positive absolute returns by combining Cash Futures Arbitrage
PMS & Event Arbitrage PMS.
As on 30th September, 2015

1M

Since Inception

Forefront Enhanced Arbitrage PMS

0.5%

14.0%

Crisil Liquid

0.7%

6.1%

Inception Date: 9th January 2015

Structure
Opportunities
Return
Risk Profile
Tenure

Discretionary Portfolio Management Services

Arbitrage Opportunities in trading Cash & Derivatives

Fixed Income + 3% of net of fees

Consistent returns with fixed income plus profile
A minimum holding of 3 months

29

Perpetual Bonds & Preference Shares

Perpetual Bonds - Snapshot
Issuer
11.00% Bank of India Perp
10.75% IDBI Bank Perp
9.55% Canara Bank Perp

Rating

Coupon

Selling Yield Interest Payment

Maturity

AA+ Brickworks

11.00%

9.50%

8-Aug Annual

8-Aug-24 (Call)

AA- CRISIL

10.75%

10.40%

17-Oct Annual

17-Oct-24 (Call)

AA ICRA

9.55%

9.40%

5-Mar Annual

5-Mar-25 (Call)

**Charitable Trust and Provident Fund / Pension Fund / Retirement Funds can also invest in Bank Perpetual bonds
AA and above

Preference Shares- Snapshot

Issuer

Rating

Coupon

Selling Yield

Interest Payment

Maturity

L&T Preference Shares

AA+ CRISIL

8.15%

7.70%

15-Apr Annual

06-May-22

IL&FS Limited

AAA CARE

8.10%

7.80%

30-June Annual

29-June-22

TATA Capital Preference Shares AA+ CRISIL

8.33%

7.70%

Annual

30-Jun-19 (Call)

ZEE Preference Shares

6.00%

9.45%

15-Apr Annual

05-Mar-22

AA CARE

30

Tax Free Issuances

Issuer

National Housing Authority of India (NHAI) (Public Issue) (Upcoming)

Issue size

Rs. 6,000 crores with an option to retain oversubscription upto Rs. 6,000
crores aggregating to total of upto Rs. 12,000 crores

Issue opens (tentative)

1st week of November 2015

Allotment

First Come First Serve Basis

Rating

AAA (CARE, ICRA , CRISIL)

Tenor

10 Years / 15 Years / 20 Years

Expected Yield

6.90% / 7.00% / 7.05% for 10 Years / 15 Years / 20 Years respectively

31

Disclaimer
Vinay Khattar
Vinay.Khattar@edelweissfin.com
+91 (22) 4088 6023

Alok Saigal
Alok.Saigal@edelweissfin.com
+91 (22) 4088 5917

Tarun Jain
Tarun.Jain@edelweissfin.com
+91 (22) 4088 6229

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