Edelweiss Financial Services Limited · NSE:EDELWEISS
Edelweiss Financial Services — Merger or Acquisition (March 2019)
9 slides from Edelweiss Financial Services's merger presentation, Mar 5, 2019
Slide 1: Exchange filing cover letter
EW /Sec/2019/64 March 5, 2019 National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai- 400 051. Dear Sirs, Ref.:- Symbol: EDELWEISS Sub: Presentation Please find enclosed the Presentation with regard to CDPQ Investment in ECL Finance Limited, a subsidiary of
Slide 2: CDPQ Investment in ECL Finance
CDPQ Investment in ECL Finance March 2019
Slide 3: CDPQ to invest ~INR 1,800 Cr in ECL Finance
CDPQ to invest ~INR 1,800 Cr in ECL Finance • Edelweiss has entered into an agreement with CDPQ Private Equity Asia Pte. Ltd. (CDPQ), a wholly-owned subsidiary of Caisse de dépôt et placement du Québec, to invest ~INR 1,800 Cr (USD 250 mn) in our NBFC arm, ECL Finance • This will be an investment in
Slide 4: Transaction Details
Transaction Details • Investment of ~INR 1,800 Cr (USD 250 mn) in ECL Finance in 3 tranches: USD 150 million on closing; USD 50 million each at the end of year 1 and 2 • Compulsory conversion to equity any time between 24 and 60 months • Based on projected performance of ECL Finance and its subsidia
Slide 5: Credit Business Snapshot
Credit Business Snapshot • This business vertical currently has a loan book of ~INR 30,000 Cr, of which Retail credit composition is 44% • Current Net worth of this business is ~INR 5,000 Cr • The business has a current DE ratio of ~ 5:1. This investment of ~INR 1,800 Cr will add to the net worth an
Slide 6: Benefits of the Transaction
Benefits of the Transaction • ECL Finance will use this growth capital to provide thrust to the business for technology and digital investments and widen distribution to Tier 2 and Tier 3 cities, expanding our customer footprint • In addition, ECL Finance will have adequate capital to take advantage
Slide 7: About ECL Finance
About ECL Finance • ECL Finance, with its subsidiaries, will be the flagship NBFC of the Edelweiss Group • Significant growth engine providing collateral based lending products to corporates, individuals and SMEs • Track record of profitable growth and consistently high asset quality • Robust risk m
Slide 8: About CDPQ
About CDPQ • Created in 1965, Caisse de dépôt et placement du Québec is one of North America’s largest institutional investor • It is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans • It has invested globally in major financial ma
Slide 9: Safe Harbor
Safe Harbor This document may contain certain forward - looking statements, which are tentative, based on current expectations of the management of Edelweiss Financial Services Limited or any of its subsidiaries and associate companies (“Edelweiss”). The results in future may vary from the forward-l
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