This action might not be possible to undo. Are you sure you want to continue?
January 2010 www.edelcap.com
Evolution of Edelweiss
Board of Directors
Corporate Social Responsibility
Broking .com Introduction Edelweiss Capital Limited (www. The Edelweiss Group offers one of the largest range of products and services spanning varied asset classes and diversified consumer segments.edelcap. The Capital business line includes Financing and Treasury Operations. leveraging a strong partnership culture and unique model of employee ownership. The Edelweiss Group is now a conglomerate of 46 entities including 39 Subsidiaries and 6 Associate companies (December ’09).edelcap.both Institutional and HNI/Retail. Brokerage Services. primarily linked to the capital markets. institutional and HNI clients. BSE: 532922 and Bloomberg: EDEL. 2 . which are engaged in the business of providing diverse financial services. Edelweiss Capital Limited now employs about 1200 employees. It is a listed company since December 2007 under the symbols NSE: EDELWEISS.com).Edelweiss Capital Limited: A Profile January 2010 www. Evolution of Edelweiss Business Overview Edelweiss’ operations are broadly divided into Agency and Capital business lines. The Agency business line includes Investment Banking. The company’s research driven approach and consistent ability to capitalize on emerging market trends has enabled it to foster strong relationships across corporate. The Group’s product offerings are broadly divided into Investment Banking.IN. Treasury and Financing. incorporated on 21st November 1995. Asset Management and Investment advisory and distribution services. today has emerged as one of India’s leading integrated financial services conglomerates. The strategies employed ensure that broadly one-third of the total revenues are contributed by each of Agency fee & commission. Treasury Arbitrage & Trading income and Interest income thereby achieving the intended diversification in revenue streams. Asset Management. It operates through 65 offices in 21 cities in India.
It involves the distribution of the full range of third party financial products and services including IPO syndication for the retail customer. 2009 Edelweiss is ranked #2 in HNI category by amount mobilized and is ranked 5th in Retail category by the number of applications in IPOs as per Prime Database. The verticals within Investment Banking include Equity Capital Markets which include IPOs. and Advisory services which offer Mergers & Acquisitions Advisory. AIPs. Insurance. risk appetite. An online retail broking portal www.edelcap.Edelweiss Capital Limited: A Profile January 2010 www. Portfolio Management. It was adjudged winner in the Best Merchant Banker category in the Outlook Money NDTV Profit Awards 2008. Two of its deals. The Distribution Business is expanding into other products such as Mutual Funds. Edelweiss enjoys strong franchise with emerging and mid-market companies which is reflected in the # 1 ranking in both Bloomberg tables for Mid-market Private Equity placements in CY2007 and Prime Database league tables for IPOs in Mid-market segment in FY2008. The quality and caliber of research associated with Edelweiss is widely regarded across the institutional community. and is considered a Thought Leader in Alternative Research with over 15 regular products such as pair-trading strategies.com Investment Banking Edelweiss has one of the most extensive product offerings within Investment Banking in India. Mutual Funds. HNI Broking Edelweiss offers dedicated broking services to high net-worth individuals with a strong emphasis on building long-term relationships with clients. and Real Estate Funds etc. Direct Equity. analysis and archiving.edelweiss.in is operational and provides advisory and research based broking services supported by high quality execution platform and best in class reporting. Corporate Debt and Insurance. Private Equity Syndication. Intense servicing. Edelweiss also secured 1st rank in NIB category both in NHPC and OIL India IPOs by the number of applications earlier. current financial position and income requirements to create comprehensive and tailored investment strategies. corporate action tracker etc. including domestic institutional investors and FIIs across different geographies.edelresearch. Retail Initiatives Retail Broking and Distribution are the new initiatives of the Group under its Retail Business strategy. and Infrastructure Advisory. catering to different market and client segments. growth expectations. It has a strong positioning in Thematic Research . Wealth Advisory & Investment Services The Primary focus is on understanding each client's profile including life style.identifying large structural themes across sectors. Acquisition of Xcel Telecom by ATC and Acquisition of PeopleSupport by Aegis have been ranked as Cross Border Deals of the Year in the Asia M&A Atlas Awards 2009 under US$ 100 million+ and US$ 200 million+ categories respectively. Research coverage presently extends to over 160 companies across 18 sectors accounting for nearly 70% of total market capitalization representing one of the largest Research coverage universe. Derivatives Strategies. 3 . Private Equity. Edelweiss’ commitment to provide cutting edge research has resulted in a pioneering effort to provide online research to its clients through the portal www. Distribution business focuses on giving advice and analyzing the best financial product options available in the market. For the 9 months ended December 31. Rights. Broking Institutional Equities Edelweiss has one of the leading institutional equities businesses in India backed by a large and experienced research team and a large and diversified client base with a market share of ~5%. Structured Finance Advisory. Open Offers and DCM. Product offerings include specialized trading execution for active trading clients and structured products like equity linked capital protection products backed by high quality execution and reporting. The broad range of offerings includes asset allocation advisory to Structured Products. seamless execution and innovative research products have helped Edelweiss build strong relationships with over 300 institutional investors.com with smart features of sorting of information.
the Company’s primary offering in the financing business includes collateralized loan products such as sponsor funding. raising Rs. trading and research. The proposed acquisition is in sync with the existing Retail Strategy of the group with minimal overlap. subject to necessary approvals. The current focus of this business is on broad basing the product portfolio and building investment track record.edelcap. to establish a Life Insurance Joint Venture in India subject to regulatory approvals. The Company follows a disciplined and conservative approach to cash management with emphasis on strong risk policies. Growth Initiatives Edelweiss has announced that it is entering into an agreement with Tokio Marine Holdings.. one of the world’s leading insurance groups headquartered in Japan.87 billion from 129 deals with a 15. sales. 39. This would lead to long term investment opportunities for the Group while enlarging its retail footprint. On the Domestic AMC side. Corporate Debt Syndication Our Debt Syndication Desk focuses on origination. Financing With a deep knowledge and understanding of capital markets backed by strong origination capabilities. Edelweiss Mutual Fund has launched a mix of 9 schemes across equity and debt funds. The product portfolio is planned to be expanded by offering Long-Short Fund and Distressed Assets Fund. strong risk management and a conservative margin of safety (typical collateral cover ranges from 2x to 3x) ensures low or nil non–performing loans. This has resulted in a low correlation between the market returns and the treasury performance.7% market share.com Asset Management Alternative Asset Management currently focuses largely on offshore institutional investors offering advisory/management expertise for India focused Multi-Strategy Fund. Also ranked # 11 by Bloomberg in Indian Domestic Bonds Market League Table for FY09. Real Estate Fund and a Special Opportunities Fund. 4 . Ranked # 2 as per the Prime Database in CP placement for FY09. We mobilized Rs. Inc. Ranked # 2 as per Prime Database in Short Term Debt Placement for FY09. We mobilized Rs. IPO financing. Treasury The Treasury Operations in Edelweiss is similar to that of a Treasury in a Commercial Bank and focuses on liquidity management and capital preservation. Edelweiss has also announced acquisition of Anagram Capital Limited to expand its Retail Broking and Distribution businesses. loans against shares. 397. 69. It has gained a strong foothold and visibility in the market. Recent Initiatives that have been announced include setting up an ARC for which RBI registration has been received. loans against ESOPs etc.2 billion in >1 year paper across 52 deals in this period.3% market share.6 billion in 256 deals in <1 year segment with a 21.Edelweiss Capital Limited: A Profile January 2010 www. This business adopts a multi–strategy/multi-book approach to diversify and grow its portfolio while imparting liquidity in the balance sheet. Its prudent financing norms. The sponsors of mid-to-large corporates constitute its key clientele. Edelweiss continues to work on new product offerings around other asset classes.
Most members of the senior management team have been with the company for over five years. Independent Director Kunnasagaran Chinniah. 5 . The focus is on strong corporate governance. each of whom brings in his own expertise in diverse areas. Executive Director. N.Independent Director Narendra Jhaveri.edelcap. Independent Director Navtej S. The company has experienced business heads supported by a deep layer of skilled middle managers. Independent Director. The directors of the company are: Rashesh Shah. Ramanan Raghvendran. Non. Venkatachalam.Edelweiss Capital Limited: A Profile January 2010 www. Nandra. Executive Director. Independent Director Berjis Desai. Independent Director P. Sunil Wadhwani. Independent Director Senior Management Edelweiss has an experienced and capable Senior Management team with a strong track record of identifying business opportunities and executing on strategy. Venkatachalam Ramaswamy.com Corporate Structure * Edelweiss Capital Limited has 100% holding in its subsidiaries unless specifically mentioned in parenthesis Board of Directors The Edelweiss Board comprises of six independent directors and one non-independent non-executive director out of a total of nine directors.
718 1.422 4.971 1. indicating a strong balance sheet.005 5. As on December 31.com Rashesh Shah Chairman & CEO Venkat Ramaswamy Executive Director Deepak Mittal Chief Financial Officer Himanshu Kaji Group COO & Head .154 4.edelcap.Strategy Naresh Kothari President & Co-head Institutional Equities.769 36 2009 9.199 1. Private Client Services Rujan Panjwani President & Management Co-head Asset Vikas Khemani Executive Vice President & Co-Head . Financial Performance at a Glance Edelweiss over the past few years has delivered strong operating and financial performance. 22 billion (over Rs.Institutional Equities Rajeev Mehrotra Executive Vice President & Head Special Opportunities Investments Peeyoosh Chadda Executive Vice President & Co-head . It has consistently demonstrated a strong track record of high growth and profitability.467 1. Its revenues and PAT have grown at an 11year CAGR of 80% and 74% respectively. 25 billion including minority interest).889 6.290 1.ECL Finance A four tier leadership pool covering over 10% of the organization provides stable leadership across various businesses. Equity capital is the primary source of funding for the group besides debt.533 898 636 218 417 41 2005 727 383 345 107 237 47 2004 281 175 106 28 78 38 6 . 2009 Edelweiss Group’s Networth post minority interest stood at over Rs.732 41 2007 3.540 2.573 2.Asset Management Ravi Bubna Executive Vice President & Co-Head .099 47 2006 1.747 646 1.864 37 2008 10.581 695 1.715 3.Edelweiss Capital Limited: A Profile January 2010 www. The leverage as on 31st December ‘09 is ~1.23 times indicating the healthy position whereby the balance sheet can be further levered easily for improving the ROEs. Consolidated Financial Performance of Edelweiss Capital Limited (In INR mn) 9M/Financial Year Total Income Total Expenditure Profit Before Tax Tax Expenses Net Profit (after minority) Pre-tax Margins % 9M’10 7.
A large capital base also allows it to transact larger volumes of broking and trading in the markets giving it a leadership position in Institutional Equities business. FY10 Total Income and Profit after Tax are estimates. 33 billion and places the company among top 5 brokerage houses in the country by market cap. It also enables the group to add debt capital as and when required at reasonable rates.com Edelweiss benefits from a strong and liquid balance sheet with a low leverage.Edelweiss Capital Limited: A Profile January 2010 www. A strong capital base of over Rs. 25 billion including minority interest and adequate profitability year after year allows Edelweiss to constantly invest in new businesses with an eye on future growth while scaling up the existing businesses. Its market capitalization currently is over Rs.edelcap. 7 .
) Short Term Debt Programme Bank Loan Rating-Bank Guarantees Bank Loan Rating-Short Term Loan Facility Rating Agency Rating ICRA CRISIL CRISIL LAAP1+ P1+ CRISIL CRISIL CRISIL P1+ P1+ P1+ ICRA A1+ CRISIL CRISIL CRISIL P1+ P1+ P1+ 8 .Short Term Loan Facility ECL Finance Limited Short-Term Debt Programme Edelweiss Commodities Ltd.Edelweiss Capital Limited: A Profile January 2010 www.edelcap.com Highest Short–Term Credit Ratings Edelweiss Capital Limited and three other group companies enjoy highest short term rating as under: (As on 31 December ’09) Entity Edelweiss Capital Limited Long-Term Debt Programme Short-Term Debt Programme Bank Loan Rating-Bank Guarantees Edelweiss Securities Limited Short-Term Debt Programme Bank Loan Rating-Bank Guarantees Bank Loan Rating. (formerly ECAL Advisors Ltd.
9 . To this end. It now has one of the largest ESOP pool in the financial services space in India and over 600 employees are covered through ESOPs. The flexibility in the cost structure enables it to protect the margins. 5. capital and balance sheet. ISO Certification: Edelweiss has now been certified as ISO 9001:2000 compliant. Control and flexibility of cost.com Edelweiss Strengths 1. 6. diversified revenue streams. The employees including key management own over 50% of the company. Management: Edelweiss has an experienced and stable senior management team. Low leverage on the balance sheet and highest short term credit ratings allow it ample leeway to lever the balance sheet further. Treasury Arbitrage & Trading and Interest income contribute approximately one-third each of the total revenues. The four tier leadership pool thus covers over 10% of the total employee strength of the group. Integrated & Diversified Business Model: Edelweiss derives its strength from a distinct but complementary set of diversified businesses which also protect the Group from any downward cyclical pressures. Edelweiss is also shielded from any adverse asset liability mismatch as its asset-side duration is less than 9 months whereas its liabilities have duration of about 120 months. today is a strong franchise in the capital markets backed by a consistent focus on execution and innovation. Edelweiss constantly emphasizes training and developing leadership and is currently setting up a 100 seater Training Centre at Alibaug (near Mumbai). Employee Ownership: Edelweiss has a widely distributed employee ownership and was among the pioneers in the financial services industry in instituting an employee stock option scheme. Its core business diversification approach is based on growth through adjacent markets and through widening the product mix in existing businesses. 3. which comprises of a 40 member Senior Leadership Group and an 80 member Leadership Group forming the bench strength. Edelweiss Business Model is to be able to adjust to downturn in markets with inherent cost flexibility and be able to quickly convert growth opportunities into business when they reappear. 2. strong risk management and organization build up by developing leadership in bench and investing in culture which rewards thinking about long-term in a partnership cohesive approach. 9. Its focus while managing the Balance Sheet is on strong risk management and capital preservation.Edelweiss Capital Limited: A Profile January 2010 www. 25 billion and adequate profitability year after year allows Edelweiss to constantly invest in new businesses with an eye on future growth while scaling up the existing businesses. Agency fee & commission. We also have a strong middle management team. The synergistic diversification ensures three broad streams of revenue. This is an organisation wide certification. which covers all Lines of Businesses and Support Functions. Board level Commitment: A board comprising of six independent and one non-independent non-executive director out of a total of nine directors. Brand: Edelweiss – the brand. Edelweiss continues to look to invest in long term business opportunities in financial services. It constantly emphasizes innovation which is reflected in leadership in new products and asset classes and new client segments. A strong capital base of over Rs. viz. 4. Our business growth perspective is aligned to the medium term of 3 to 5 years.edelcap. 7. Balance Sheet: Edelweiss benefits from a strong and liquid balance sheet with a low leverage. It ensures that Quality Management System (QMS) of Edelweiss complies with International Standards. strong risk management focuses on preservation of capital and the group maintains adequate liquidity cushion to ensure smooth business operations across cycles. Edelweiss’ Core Strategic Approach to business is founded on growth with profitability backed by synergistic diversification across the businesses. all of whom play a governing role and provide expertise and insight into building Edelweiss into one of the most reputable organizations with an admirable compliance and corporate governance ethos. 8.
beyond the call of the business.000 to three NGOs and six runners-up in its first Honours bestowed during the year 2008-09. the CSR wing of Edelweiss. EdelGive Foundation. its clients and its associates.to achieve the objective of addressing the primary needs of the social sector. Corporate Social Responsibility is a part of its DNA and it focuses on initiatives that help to build a better. has accordingly been formed to create an effective institutional platform to provide structure and direction to the philanthropic activities of Edelweiss. more equitable and sustainable society. 10 . its employees.Edelweiss Capital Limited: A Profile January 2010 www. Edelweiss leverages its strengths .com Corporate Social Responsibility At Edelweiss. Its primary focus is on creating educational. from the British Asian Trust. It awarded total prize money of USD 72. EdelGive Foundation focuses on the twin areas of education and livelihood and leverages Edelweiss’ intellectual capital by encouraging Edelites to volunteer and use their skills to support non-profits in developing MIS systems. based in London.com. EdelGive’s partner. Kubera-Edelweiss Social Innovation Honours is a joint CSR initiative of Kubera Partners and Edelweiss to encourage NGOs who are working to improve the status of the girl child in the areas of health. employment and sustainable livelihood opportunities for underprivileged youth and it brings an ‘institutional banking and venture capital” rationale and thinking to the social sector.000 in the recent past for Mumbai Mobile Crèches. Edelweiss has been rated among the top 5% of companies in terms of CSR by Karmyog. CSR means giving back to the society .edelcap. reviewing their accounting and reporting systems and building five-year strategic and financial plans. The Foundation has also successfully raised GBP 20. For Edelweiss. education and employability. The Social Innovation Honours for the year 2009-10 have received overwhelming response with over 280 entries.the ability and expertise to act as a bridge between providers and consumers of capital .
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.