FINANCIAL PRODUCTS
1. CORPORATE FINANCE:
· Working Capital Facilities
· Project Finance
· Term Loan
· Corporate Loan
· Real Estate Funding
· External Commercial Borrowing (ECB)
Working Capital Facilities:
Short term finance to fund the gap in operating business cycle. It normally involves:
Forecasting working capital requirement. Preparation of CMA data. Preparation of applications/proposal for Bank(s). Advising/Assisting clients in negotiation on pricing, concessions, security etc. with Bank(s). Assisting client on documentation and disbursement
Pre & Post shipment funding:
Short term, pre-shipment financing enables exporters to procure raw materials for the manufacture of finished goods for export. The facility is available both in INR and in major foreign currencies to Exporters, enabling the exporters to compete in global market. Short term, post-sale financing to the exporter to provide liquidity during the credit period permitted to the overseas buyers to make payment. The facility is available both in Indian rupee and in major foreign currencies to Exporters, enabling the exporters to compete in global market against others
Project Finance:
Long term financing of commercially viable projects based upon the projected cash flows of the project rather than the balance sheets of the project sponsors. Usually, a project financing structure involves:
· Preparation of project reports, financial statements
· Analysis of financial viability of the project, negotiation with banks /Institution for terms
· Assistance in deciding the appropriate pricing structure/security offered for the proposed transaction
· Assisting client on documentation and disbursement.
Term Loan:
Term Loan for a specific purpose like acquiring equipment/machinery, capex for balancing of capacities, modernization etc. having specified repayment schedule and a floating/fixed interest rate for medium to long term period on specific/ sharing of securities.
Corporate Loan:
Loans are both short and medium term in nature. Short term finance is raised to meet occasional liquidity constraints and is usually provided for a period up to 12 months. In specific cases, the period may extend beyond 12 months on merits of the case.
Real Estate Funding:
Projects related to group housing schemes, commercial properties for non-industrial activities come under real Estate funding. Preparation of project reports, financial statements. Analysis of financial viability of the project, Negotiation with Banks / Institution for approval.
External Commercial Borrowing (ECB):
The foreign currency borrowings raised by the Indian Corporate from confirmed banking sources outside India are called "External Commercial Borrowings" (ECBs). Our Services include:
· Identification of Investment & Lending Institution.
· Advising client on ECB fund raising as per latest RBI guidelines.
· Assisting company in completion of necessary documentation exercise.
2. INVESTMENT BANKING:
Investment funds have become a common means of raising capital, especially since eligible asset classes have expanded, listed fund vehicles have become more available, and the ability to market products across territories has improved. Our investment fund specialists, assist clients in structuring and implementing a wide range of regulated and unregulated investment funds, including equities, debt, private equity, real estate, infrastructure, hedge funds, fund of funds and other alternative investments. Alongside this, we also help our clients establish new asset management and advisory businesses, as well as designing co-investment and carried-interest structures appropriate to their investment fund structure.
We advise asset managers, other institutional clients and start-ups on all aspects of setting up investment funds — from concept through to marketing, launch and ultimately making investments for the fund. Our network brings a wealth of experience in investment fund vehicles and structures that can help clients which best meet their objectives.
· Private Equity Advisory
· Debt Capital Advisory
· Mergers & Acquisitions
· Promoter’s Funding
· Venture Capital Funding
· Mezzanine Funding
· Acquisition Funding
Private Equity Advisory:
We are a prominent player in Private Equity advisory with an established position. We have developed a strong expertise across corporate groups, which enable us to recognize emerging industry themes and position transactions within the context.
Our strength in Private Equity advisory stems from:-
- Long standing relationships with reputed Private Equity funding groups,
- Access to key decision makers at Private Equity funds gives us an unparalleled edge in optimal structuring and efficient closure of transactions.
- High quality execution,
- An experienced team of professionals ensures complete confidentiality, strong focus on implementation and quick turnaround time.
- Focus on long term relationships - In addition to handholding the client across the entire transaction process, we provide continued support post-transaction and have the capability to cater to investment banking needs of the client throughout his business lifecycle.
Our wider and deeper reach within the mid-market segment and relationships with financial sponsors gives us the ability to complete transactions efficiently.
Debt Capital Advisory:
Our debt advisory team uses its extensive knowledge of the debt markets to provide a clear analysis of the organization’s debt requirements and funding options. Our advice is objective and independent of the providers of capital. We also offer assistance throughout the transaction process from initial strategy through to implementation.
Our Debt Capital Markets product portfolio includes:-
-Term Loan, Factoring/Bill & LC Discounting, Bond Issuance, ECB, FDI, Foreign Currency Convertible Bonds (FCCB), Debt Restructuring,
Mergers & Acquisitions:
As part of our M & A advisory offering, we provide both buy-sides as well as sell-side advisory to our clients.
We provide M&A advisory services to our clients across corporate groups & Industrial sectors. Our strong domain knowledge and expertise across various sectors enables us to provide superior advice to our clients. We also bring innovative structuring capabilities, which can give our clients an edge in competitive situations.
Our mergers and acquisitions services for the companies need advice on:
· Developing the sales strategy as well as establishing price expectations and realistic valuation parameters.
· Involving tax and industry focused professionals to assist in developing the most beneficial environment for the sale.
· Identifying and assessing prospective purchasers in your sector, nationally and internationally using our worldwide network.
Promoter’s Funding:
The financing is usually done against collateral of shares held by the promoter or Group Company for a period varying from 6-36 months. The transaction helps in unlocking the value of promoter shareholding by raising additional funds. It is mostly done to enable promoters to raise their stake in the company.
Venture capital:
Venture capital (VC) is the process of investing private equity in companies, typically in early stages of development, that are believed to offer significant potential to grow substantially and reward investors accordingly. The objective of VC is to generate high rates of return over long periods of time. VC offers institutional investors and high-net-worth individual’s high returns (historically better than stocks) and strong diversification benefits from very low correlations with other asset classes. The major negatives of investing in VC are long time frames, lack of liquidity, and high management fees.
Mezzanine Funding:
It is a subordinated debt or preferred equity instrument that represents a claim on a company's assets which is senior only to that of the common shares. It can be structured either as debt or preferred stock and can be completed through a variety of different structures based on the specific objectives of the transaction and the existing capital structure in place at the company.
Acquisition Funding:
There has been a significant increase in the number of acquisitions by Indian companies, both domestic as well as overseas. Acquisition financing plays a critical role in the success of inorganic growth planned by the acquirer. Based on each client’s unique requirements, we advise on acquisition financing through appropriate financing structures.
3. TRADE FINANCE:
Trade finance is a mechanism to facilitate the financial risk reduction in export and import processes for buyers who are the applicants and sellers who are the beneficiaries. An exporter needs to mitigate the payment risk from the importer and it would be in their benefit to accelerate the receivables. On the other hand the importer wants to mitigate the supply risk from the exporter and it would be in their benefit to receive extended credit on their payment.
The function of trade finance is to act as a third-party to remove the payment risk and the supply risk, whilst providing the exporter with accelerated receivables and the importer with extended credit.
A common solution to this problem in the area of trade finance is through the issuing of a letter of credit, which is opened in the exporter's name by the importer through a bank in his home country. The letter of credit essentially guarantees payment to the exporter by the bank issuing the letter of credit upon receipt of documentary proof that the goods have been shipped. Although this is a somewhat cumbersome process, the letter of credit system is one of the most popular trade finance mechanisms.
Factoring:
Factoring is a receivables management and financing mechanism which is designed to improve cash flows and cover the credit risk of the seller. Unlike other forms of receivables financing, like bills discounting and forfeiting; factoring involves a continuous relationship between a factor and a seller, to finance and administer the receivables of the latter. Factors are financial companies which pay cash against the credit sales of the client, and obtain the right to receive the future payments on those invoices from the debtors of the client.
We provide financing service to small and medium-sized companies who need cash. It is a low value short term financing forms. It involves the purchase of invoices. After shipping your goods or services, the factor purchases the invoices, and advances cash to you company, it provide liquid assets to small business. In fact banks have strict criteria when lending money so it is difficult for these companies to obtain loans.
Buyer’s Credit:
As an importer, you can avail of Buyers Credit facility at very competitive rates. You can make the import payment to your overseas supplier by availing the buyer’s credit and can repay the lender at a later date. The funding is arranged from our overseas network branches and you can avail of this product in major currencies.
Forfeiting:
Forfeiting is the purchase of a series of credit instruments such as drafts, bills of exchange, other freely negotiable instruments on a nonrecourse basis. Nonrecourse means that if the importer does not pay, the forfeiter cannot recover payment from the exporter. The exporter gets immediate cash on presentation of relevant documents and the importer is liable for the cost of the contract and receives credit for “x” years and at certain per cent interest. The forfeiter deducts interest at an agreed rate for credit period. The debt instruments are drawn by the exporter, accepted by the importer, and will bear an avail or unconditional guarantee, issue by the importer’s bank. The forfeiter takes over responsibility for claiming the debt from the importer. The forfeiter holds the notes until maturity, or sells them to another investor. The holder of the notes presents each note to the bank at which they are payable, as that fall due.
4. ADVISORY SERVICES & CDR:
Business Advisory:
The businesses have their ups and downs given that; companies need to review their capital structure on a regular basis to ensure that they meet their commitments across all business cycles. We work with our clients to review their capital structure and offer services to enable them to meet their financial commitments like
· Debt swapping with limits enhancement.
· Reduction of Interest Costs.
· Realignment of Repayment Schedules.
· One Time Settlements.
· Debt Restructuring.
· CDR schemes for weak units in multiple/consortium banking arrangement.
· Rehabilitation schemes for weak units in sole banking.
5. TREASURY MANAGEMENT:
Commercial Paper:
Commercial Paper is a rated, unsecured money market security issued by corporate, NBFCs, FIs and PDs at discount in the form of usance promissory note as a privately placed instrument with a fixed maturity of 7 days to a maximum of 1 year. It can be mainly subscribed by Banks, FI, Insurance Companies, FIIs and Mutual Funds. CP can be issued by issuers having ratings assigned by CRISIL, ICRA, FITCH and CARE. Our services include:
· Identification of Banks/ Institutions.
· Negotiation for best pricing on the instrument for client.
Non- Convertible Debentures (NCD):
Our Services includes:
· Preparation of Information Memorandum.
· Negotiation with funding Institution.
· Advising client on listing of debt instrument with stock exchange.