may 2019 - kotak mahindra bankcredit... · banking processes, customer acquisition and retention...
TRANSCRIPT
May 2019
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Please click here to check the Holdings in our Fixed Income Funds or refer to page no 24
Sr no:
Credit Papers Ratings *Upgrade/ Downgrade
Pg. no.
(A) Kotak Credit Process 4
(A) New Credit Papers
1 Hero Fincorp Limited CRISIL AA+/A1+ No Change 5
2 IIFL Home Finance Limited CRISIL/ICRA AA No Change 5
(B) Existing Credit Papers
3 Coromandel International Limited CRISIL AA+/A1+, IND AA+/A1+
No Change 6
4 Chambal Fertilisers & Chemicals Ltd CRISIL A1+ No Change 6
5 Bharti Enterprises (Holding) Private Limited CRISIL A1+ No Change 6
6 Indian Hospitals Corporation Ltd BWR AA-(SO) No Change 7
7 Bahadur Chand Investments Private Limited ICRA AA No Change 7
8 Tata Communication Payment Solutions Ltd CARE AA(SO) No Change 7
9 Godrej Properties Ltd ICRA AA/A1+, CRISIL A1+ No Change 7
10 Nayara Energy Limited CARE AA No Change 8
11 Coastal Gujarat Power Ltd. (Guaranteed by Tata Power Co. Ltd ) CARE AA(SO) No Change 8
12 JM Financial Asset Reconstruction Company ICRA AA-/A1+, CARE AA-/ A1+, CRISIL AA-/A1+
No Change 9
13 Altico Capital India Pvt Ltd IND AA- / ICRA A1+ No Change 9
14 Avendus Finance Pvt Ltd CRISIL A+ / A1+ No Change 9
15 Rent A Device Trust/Reliable Devices Trust ICRA AAA(SO) No Change 10
16 Endurance Technologies Ltd CRISIL AA / A1+ No Change 10
17 Utkarsh Small Finance Bank ICRA A1+ No Change 10
18 AASAN Corporate Solutions Private Limited ICRA AA- (SO) No Change 11
19 Jyothy Fabricare Services Limited CARE AA(SO) No Change 11
20 Punjab National Bank
IND A+ CARE AA- CRISIL AA BWR AA (for Additional Tier1 Bonds)
No Change
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21 Sarvoday Advisory Services Pvt. Ltd BWR A(SO) No Change 12
22 Bharti Telecom Ltd CRISIL A1+ No Change 12
23 Future Lifestyle Fashions Ltd CRISIL AA- No Change 12
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Aarish Solar Power Ltd. / Aashman Energy Pvt. Ltd. / Divyesh Power Pvt. Ltd. / Elena Renewable Energy Pvt. Ltd. / Pratyash Renewable Pvt. Ltd. / SEI Baskara Power Pvt. Ltd. / SEI Enerstar Renewable Energy Pvt. Ltd. / SEI Mihir Energy Pvt. Ltd. / Zuvan Energy Pvt. Ltd / Shreyas Renwable Energy Pvt. Ltd
CARE AA-(SO) No Change 12
25 Adani Infra (India) Ltd BWR AA-(SO) No Change 13
26 Ananta Landmarks Pvt Ltd. Unrated No Change 13
27 AU Small Finance Bank Ltd. AA-/A1+ by CRISIL, ICRA India Ratings, CARE
No Change 13
28 Asirvad Microfinance Pvt. Ltd CRISIL A+ No Change 13
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29 Barclays Investments & Loans (INDIA) LTD. ICRA AAA / A1+ No Change 14
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Birla TMT Holding Pvt Ltd, Turquoise Investments & Finance Pvt Ltd CRISIL A1+ No Change 14
TGS Investment & Trade Pvt Ltd, Trapti Trading & Investments Pvt Ltd ICRA A1+ No Change
31 Bhopal Dhule Transmission Company Limited CRISIL AAA No Change 14
32 Konti Infrapower & Multiventures PvtLtd/ Edison Utility Works Pvt.Ltd. BWR BBB (SO) Downgrade 15
33 Dewan Housing Finance Corp Ltd CARE D Downgrade 15
34 Dalmia Cement Bharat Ltd ICRA AA/A1+ No Change 15
35 ECL Finance Ltd ICRA AA/CRISIL A1+ No Change 16
36 East-North Interconnection Company Limited CRISIL AAA(SO) No Change 16
37 Essel Lucknow Raibareli Toll Roads Limited CARE AAA No Change 17
38 Fullerton India Credit Co. Ltd. CARE AAA/ICRA A1+ No Change 17
39 HPCL Mittal Energy Ltd. and HPCL Mittal Pipelines ICRA AA+ No Change 17
40 Igarashi Motors Sales Pvt. Ltd . (IMSPL) ICRA AAA (SO) No Change 18
41 Indostar Capital Finance Ltd CARE AA- No Change 18
42 IOT Utkal Energy Services Ltd CRISIL AAA(SO) No Change 18
43 Manappuram Finance Ltd CARE AA/ A1+ No Change 19
44 Nabha Power Ltd ICRA AAA(SO)/ CRISIL A1+ No Change 19
45 Nuvoco Vistas Corporation Ltd CRISIL AA No Change 19
46 Jamnagar Utilities & Power Pvt Ltd CRISIL AAA No Change 19
47 Powergrid Vizag Transmission Ltd. CRISIL AAA(SO) No Change 20
48 Prestige Estates Projects Ltd ICRA A+ No Change 20
49 S D Corporation Private Limited ( backed by unconditional and irrevocable DSRA guarantee of Shapoorji Pallonji & Co Pvt Ltd)
CARE AA (SO)
No Change 20
50 SP Jammu Udhampur Highways Ltd ICRA AAA(SO)) No Change 21
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M.J. Pharmaceuticals Pvt. Ltd
CARE A1+ (SO)
No Change 21 Unimed Technologies Limited
Suraksha Realty Ltd
Suraksha Asset Reconstruction Co. Ltd
52 Tata Motors Finance Solutions CRISIL AA/ CARE A1+ No Change 22
53 Tata Power Ltd. CRISIL AA-/ICRA A1+ No Change 22
54 U P Power Corporation Ltd IND AA(SO)/A+(SO) No Change 23
Holdings in our Fixed Income Funds as on 31st May 2019 24
As on January 31, 2019
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Kotak Credit Process – Mitigating Risk Through Robust Practices
Robust Credit Evaluation Process at Kotak MF
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Hero Fincorp Limited (CRISIL AA+/A1+)
Hero FinCorp Limited (HFCL) was only focusing on extending term loans, machinery loans, and bill
discounting facilities primarily to entities within the Hero Motocorp Company Limited (HMCL)
ecosystem till April 2013.
Subsequently, the company expanded its operations to entities outside the HMCL ecosystem and
started extending loans for HMCL two-wheelers, used car financing, personal loans and loans
against portfolio (LAP).
During FY2019, the company reported a profit after tax (PAT) of Rs. 268 crore. The net worth of
the company was Rs.3,667 crs. The AUM was reported at Rs.19,650 crores as on Mar’19 which
reported a growth of 44.5% in one year.
As on Mar 31, 2019 the company had a capital adequacy of 19.3% (Tier I – 16.3%). The company
reported gross and net NPAs of 4.5% and 3.0% respectively as on Mar 31, 2019.
As on Mar 31, 2019, HFCL had a total credit consisting of Retails loans 47.4% (predominantly driven
by 2wheeler), Retail SME Loans 22.0% and Corporate Loans 30.5%.
IIFL Home Finance Limited (CRISIL/ICRA AA)
IIFL Home Finance is part of IIFL group.
IIFL Home Finance Limited is a fully owned subsidiary of India Infoline Finance Limited and is
registered as a housing finance company with National Housing Bank.
IIFL has a diversified loan book and offers products like home loans, gold loans, commercial vehicle
loans, MFI loans, MSME loans, LAP and construction finance.
The company reported a net profit of Rs. 306 crs as on an income of Rs. 1,748 crs for FY2019 as
compared to net profit of Rs. 232 crs on an income of Rs. 1,214 crs for FY2018.
New Credit Papers
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Coromandel International Limited (CRISIL AA+/A1+; IND AA+/A1+)
Coromandel International is one of the flagship companies of the ~Rs 329 Billion Murugappa group
and was established as a private company in 1961. At present, E.I.D. Parry (India) Ltd, a Murugappa
group company, owns nearly 60.56% of Coromandel as on 31st March, 2019.
Coromandel International Limited is India’s second largest Phosphatic fertilizer player and is in the
business segments of Fertilizers, Specialty Nutrients, Crop Protection and Retail.
The Company manufactures a wide range of fertilizers and markets around 4.5 million tons.
CIL had a turnover of Rs. 13,262 Crore (consolidated) and net profit of 721 crores during FY 2018-
19 as compared to turnover of Rs. 11,187 crore during FY 2017-18.
Chambal Fertilisers & Chemicals Ltd. (CRISIL A1+)
Chambal Fertilizers, a part of the KK Birla group, has the largest installed urea capacity in the
private sector of 3.07 million tonnes per annum.
The company has strong presence in the North Indian markets, with favorable plant locations close
to end markets.
The Company has recently completed the capex and has put 1.34 mn tonnes of urea unit. The
plant has steady operations since its commencement and operating at capacity of 90%.
The KK Birla group is well established in India and its other companies include HT Media Ltd
(publishers of the Hindustan Times), Sutlej Industries Ltd, and Upper Ganges Sugar and
Industries Ltd.
Chambal fertilisers & chemicals had a turnover of Rs.10,094.51 Crore (standalone) and net profit
of 545.27 crores as on FY19 as compared to turnover of Rs. 7,466.16 crore and net profit of
Rs.476.49 crs on a year on year basis.
Bharti Enterprises (Holding) Private Limited (BEHPL) (CRISIL A1+)
BEHPL, promoted by the Bharti Mittal family, is a key holding company of the Bharti group. BEHPL
is a major vehicle for the Bharti Mittal family to control investments in telecom.
BEHPL holds large stake in Bharti Telecom which in turn holds 50.10% stake in Bharti Airtel Limited.
Hence, BEHPL has effective holding of 23.51% in Bharti Airtel Limited.
The current market value of this effective stake in Bharti Airtel is Rs 38,000 crores.
Existing Credit Papers
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Indian Hospitals Corporation Ltd (BWR AA-(SO))
Indian Hospitals Corporation Limited is a promoter group company of Apollo Hospitals Enterprise
Ltd (AHEL).
The company has been promoted by Dr. Prathap C Reddy and his family members, who are the
promoters of Apollo Hospitals Group.
It is a Loan against shares funding and the primary comfort here is drawn from underlying shares
as securities. The transaction is structured with a security cover of 2.00 times and is in the form of
pledge of listed shares of Apollo Hospitals Enterprise Limited.
Apollo Hospitals Enterprise Limited started in 1983 is an integrated healthcare organizations with
owned and managed hospitals, diagnostic clinics, dispensing pharmacies and consultancy services.
Bahadur Chand Investments Private Limited(ICRA AA)
Bahadur Chand Investments Private Limited and its parent, Brijmohan Lal Om Prakash’s (BMOP),
are the principal holding companies of Hero MotoCorp Limited (HMCL).
BCIPL has strong financial flexibility emanating from the market value of its investment in HMCL.
It holds 20% stake in HMCL
BCIPL and BMOP also hold equity and preference stake in a large number of group companies viz.
Hero FinCorp Limited, Hero Future Energies Private Limited (merged into Clean Solar Power
Hariyur), Rockman Industries Limited, Hero Electronix Private Ltd etc
Tata Communication Payment Solutions Ltd.(TCPSL)(CARE AA(SO))
TCPSL, is a wholly owned subsidiary of Tata Communications Ltd. (TCL). TCPSL is a banking and
financial services organization offering a one stop 'plug-and-play' infrastructure management
solution on a pay-per-use model to its clients.
The company provides payment solutions such as managed ATM services, managed hosted core
banking solutions, point of sale (POS) solutions, card issuance & management and financial
inclusion solutions. These services enable banks to focus on their core business, establish core
banking processes, customer acquisition and retention channels with minimum resource
allocations.
Godrej Properties Ltd (ICRA AA/A1+, CRISIL A1+)
Godrej Properties Ltd (hereinafter, GPL) is currently developing residential, commercial and
township projects spread across approximately 12 cities.
GPL is a part of the Godrej Group which is amongst India’s most diversified conglomerates. The
Godrej Group was established in 1897 and comprises of a varied business portfolio that includes
real estate development, fast moving consumer goods, advanced engineering, home appliances,
furniture, security, and agri-care.
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In 2010, Godrej Properties became a publicly listed company through a successful IPO in which it
raised USD 100 million. It is one of India's only national developers with a strong presence across
the country's leading real estate markets.
The turnover has been in range of Rs 1,600 cr to Rs 2,200 cr in last 3 years with corresponding
EBITDA margin of 23%-28%.
There has been an improvement in the capital gearing ratio in FY 19 and it is at 0.87.
Strong profitability figures have been reported in FY 19 with Net Profit margin at 7.8%(4.2% - FY
17) and EBITDA at 18.45(13.7% - FY17).
Nayara Energy Limited (CARE AA)
Incorporated in 1989, Nayara Energy Limited (formerly known as Essar Oil Limited) is an Oil and
Gas company engaged in refining and marketing.
It owns India's second-largest single location Refinery (at Vadinar, Gujarat) having a capacity of 20
million metric tons per annum (mmtpa; equivalent to 140 million barrels) and high complexity,
which allows it to process crude oil with a blend of 23-30 API.
It can process wide variety of crude oil ranging from ultra-heavy, high sulphur, sour crude (i.e. low
API) to low sulphur light crude (i.e. high API) and has the flexibility to achieve the product slate
based on expected demand.
In August 2017, Essar Oil Limited (excluding Exploration & Production Division), along with its
captive port and power assets, was acquired by Petrol Complex Pte. Limited (49.13%), a company
owned by Rosneft Oil Company (a leader of Russia’s petroleum industry and second largest
company in the world in terms of hydrocarbon production and reserves) and Kesani Enterprises
Company Limited (49.13%), an investment consortium comprising of global commodity trading
firm Trafigura Pte. Ltd., UCP PE Investments Ltd., and Oil Holding Limited at an enterprise value of
USD 12.9 billion.
The equity value of transaction was USD 7.5billion
Coastal Gujarat Power Ltd. (Guaranteed by Tata Power Co. Ltd) (CARE AA(SO))
CGPL had implemented a 4,150-MW Ultra Mega Power Project (UMPP) in Mundra in Gujarat. The
operations started in 2013.
CGPL has entered into Power Purchase Agreement (PPA) with DISCOMs in Maharashtra (760 MW),
Gujarat (1805 MW), Rajasthan (380 MW), Punjab (475 MW) and Haryana (380 MW) for 3,800 MW
power supply.
CGPL is a wholly owned subsidiary of Tata Power, which has a strong market position as integrated
power player. Tata Power is rated AA- by CRISIL.
Exposure on CGPL is guaranteed by unconditional and irrevocable guarantee of Tata Power.
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JM Financial Asset Reconstruction Company (ICRA AA-/A1+, CARE AA-/ A1+, CRISIL AA-/A1+)
JMFAR is the asset reconstruction arm of JM Financial Group. It started operations in September
2008.
JM Financial Group owns 59.25% of JMFAR while the remaining shareholding is spread between
promoter group, public sector banks and institutional investors.
Asset reconstruction business involves acquisition and resolution of distressed debt assets sold by
banks or financial institutions
JMFAR initiates resolution of distressed assets either through a negotiated settlement with the
entity (one time settlement), or by undertaking a debt restructuring process (acquisition as going
concern and then attempt financial turnaround of the acquired company)
Total AUM of the entity is ~Rs 14,049 cr in FY’19. Majority of AUM is currently spread across
hospitality, real estate, pharmaceutical, textiles and ceramic industry
JMFAR had income of Rs 560 cr in FY19 with PAT of 166 cr. The company is well capitalized with
gross gearing of 1.99x in FY’19
Altico Capital India Pvt Ltd (IND AA-, ICRA A1+)
Altico was established in 2004 by Clearwater Capital Partners LLC as Clearwater Capital Partners
India Private Limited for wholesale lending to Indian SMEs. In January 2005, it was registered as a
non-deposit accepting NBFC with the Reserve Bank of India. Its business strategy initially focused
on special situation opportunities across capital structures.
In FY15 the company was rebranded to Altico Capital India Pvt. Ltd marking a change in the
business strategy. Clearwater Capital Partners, Abu Dhabi Investment Council and Varde Partners
have infused a combined capital of US$ 300 million in Altico Capital India Pvt Ltd.
The company is mainly focused on senior secured lending to mid-income residential projects
across Tier-1 cities in India which include Mumbai, NCR, Chennai, Bangalore, Pune and Hyderabad.
The Company may look at commercial and other allied sectors (to real estate sector) in the future.
Avendus Finance Pvt Ltd (CRISIL A+/A1+)
Avendus Finance Pvt Ltd (‘AFPL’) is an NBFC and a part of the Avendus Group.
AFPL provides financing solutions to its corporate clients through Structured
Debt/Mezzanine/High Yield products and assists in capital structuring as well as arranging
financing for various requirements.
AFPL is a wholly owned subsidiary of Avendus Capital Private Limited (ACPL). Private equity firm
Kohlberg Kravis Roberts (KKR Group) owns around 65% in ACPL (parent of AFPL). ACPL is the
flagship company of the group and operates in M&A advisory, PE syndication and equity capital
markets.
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KKR became the dominant shareholder by infusing Rs 460 crores into ACPL to expand the
financing, wealth management, and other businesses in 2015.
Rent A Device Trust/Reliable Devices Trust (ICRA AAA(SO))
It is a securitization transaction through Pass-Through Certificates (PTCs) which are backed by
rentals due from Reliance Retail Limited (Renter/ RRL). The same receivables are assigned to the
Rent a Device Trust.
The same is rated as AAA(SO) by ICRA as the primary risk is predicated on Reliance Retail which is
rated as AAA.
Reliance Retail Limited is a step - down subsidiary of Reliance Industries Limited that owns about
94.4% stake in Renter through Reliance Retail Ventures Limited (RRVL).
RIL forayed into the retail business in 2006 and has supported the growth of this business over the
past decade through significant funding (total investments of ~Rs. 6,300 crore made as on March
31, 2018 in form of equity and convertible instruments) making RRL the largest retailer in the
country.
Endurance Technologies Ltd (CRISIL AA/A1+)
Endurance Technologies was established in 1985 by Mr. Anurag Jain (nephew of Rahul Bajaj,
Chairman – Bajaj Auto).
Endurance Technologies, a listed company, is one of India’s leading automotive component
manufacturing companies for its product portfolio. The company began with manufacturing of
aluminum castings.
Over time it has grown organically in India, by diversifying into two and three wheeler suspension,
transmission and braking systems products. At the same time, the Company has successfully
grown inorganically through various strategic acquisitions in Europe. The Company derives 70%
revenue from India and the remaining 30% from Europe.
The domestic business is mostly 2-wheeler business with greatest revenue contribution coming
from aluminum casting (44% of domestic revenues) followed by suspension (34%), transmission
(8%), Braking (7%) and aftermarket and others (7%).
In the Indian markets, the company primarily started as a supplier to Bajaj Auto. However, over
the years it has successfully added new customers like Hero MotoCorp, Honda Motorcycles and
Scooters, Royal Enfield, Yamaha, etc. In Europe, Endurance is a 4W aluminum casting supplier and
caters to customers like FCA Italy SpA (Fiat), Daimler, Jeep, etc.
Utkarsh Small Finance Bank (ICRA A1+)
Utkarsh SFB is promoted and helmed by Mr. Govind Singh in the capacity of Managing Director &
CEO. Mr. Singh has over three decades of experience in microfinance, banking and finance.
Total loan book as on FY18 was ~Rs 3,100 crores out of which ~90% is microfinance (under Joint
Lending Model) given the vintage of the group in microfinance space. The company has started
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operations in Wholesale loans, MSME and Affordable Housing and expects to grow portfolio
through these segments.
~80% of book is concentrated in UP and Bihar given the vintage. However, this number is coming
down.
The entity is moderately capitalized with overall capital adequacy ratio of 17.4%.
The asset quality is under control with net NPA of 1.1% in FY18
AASAN Corporate Solutions Private Limited (ICRA AA-(SO))
The company is wholly-owned by Sri Krishna Trust, through its trustee Mr. Ajay Piramal.
The NCDs are secured by an unconditional, irrevocable and continuing guarantee by The Sri
Krishna Trust (SKT) and Piramal Management Services Private Limited (PMSPL) that would cover
all obligations that may arise on the rated NCDs.
SKT holds 43.71% shareholding in Piramal Enterprises Limited (PEL) and is the single largest
shareholder in PEL
There is a borrowing cap of Rs 4,500 crores or 25% of market value of free and unencumbered
listed shares of PEL held by SKT.
Jyothy Fabricare Services Limited (Guaranteed By Jyothi Laboratories Ltd.) (CARE AA(SO))
Jyothy Fabricare Services Ltd (JFSL), incorporated in 2008, is a subsidiary of Jyothy Laboratories
Ltd (JLL).
JFSL provides dry cleaning and laundry services, on B2B and B2C basis through two subsidiaries –
Four Seasons Dry Cleaning Co. Ltd. & Snoways Launderers and Drycleaners Pvt. Ltd.
Exposure to JFSL is guaranteed by Jyothy Laboratories Ltd. (JLL).
JLL, incorporated in 1983, is a well-known FMCG brand with product offerings in multiple
segments - detergents, soaps, toilet cleaners, personal care, household insecticides and insect
repellents, etc. JLL acquired Henkel India Ltd and Henkel Marketing India Ltd. in FY 2011-12.
Punjab National Bank (India Ratings A+, CARE AA-, CRISIL AA, BWR AA for Additional Tier 1 Bonds)
Punjab National Bank is the second largest Public Sector Bank in India.
Govt. of India (GOI) owns 62.25% in PNB and Life Insurance Corporation (LIC) owns around 12.24%
(Jun 30, 2018).
As on Dec 31, 2018 PNB had - total capitalization of 10.52% with Common Equity (CET1) of 6.93%
PNB has reported net loss of Rs 247 crores as on Q3FY’19.
PNB raised equity of around Rs 5,000 crores from institutional investors in Dec’17. Earlier this
year (FY 2018-19), PNB received Rs. 2,816 crs as a part of the government’s bank recapitalization
plan.
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The Bank board has approved proposal to seek capital support of Rs. 5,431 crs from the
government.
Sarvoday Advisory Services Pvt. Ltd. (BWR A(SO))
Sarvoday Advisory Services Pvt. Ltd. is owned by the Sajjan Jindal Family Trust.
Transaction structured as Loan Against Shares (LAS).
Transaction has a security cover of 2.00x in the form of pledge of listed shares of JSW Steel and
JSW Energy.
Bharti Telecom Ltd. (CRISIL A1+)
Bharti Telecom Ltd. (BTL) is promoted by Bharti group and Singtel, Singapore.
BTL holds ~50% shareholding of Bharti Airtel Limited (BAL) (June’18).
Market value of BTL’s holding in BAL is around Rs69,714.66 crs (May 31, 2019) which provides
financial flexibility to the Company.
Future Lifestyle Fashions Ltd. (CRISIL AA-)
Future Lifestyle Fashions Limited (FLF), a part of Future Group, operates in fashion retail and
distribution and has pan-India presence.
FLF operates its retail outlets in three broad formats – Central (big-box fashion retailer), Brand
Factory (fashion discount chain) and Exclusive Brand Outlets (Planet Sports, etc.).
FLF owns a portfolio of both owned / licensed brands and has also invested in various investee
brands. It has 8 owned, 10 licensed and 13 investee brands.
Product-wise, FLF has 19 brands in the pure apparel category and 12 brands in non-apparel
categories like sports / active wear, footwear, accessories and others.
Aarish Solar Power Ltd. / Aashman Energy Pvt. Ltd. / Divyesh Power Pvt. Ltd. / Elena Renewable
Energy Pvt. Ltd. / Pratyash Renewable Pvt. Ltd. / SEI Baskara Power Pvt. Ltd. / SEI Enerstar
Renewable Energy Pvt. Ltd. / SEI Mihir Energy Pvt. Ltd. / Zuvan Energy Pvt. Ltd. /Shreyas Renwable
Energy Pvt. Ltd (CARE AA-(SO))
The above mentioned companies are SPVs of Greenko Group and involved in solar power
generation.
Greenko is majorly owned by marquee investors such as GIC, Singapore and Abu Dhabi Investment
Authority.
Each SPV has set-up solar plant with capacity of 50MW each. Plants at all SPvs are operational,
supplying power to NTPC under a long term Power Purchase Agreement (PPA).
Exposure is further secured by Corporate Guarantee from Greenko Energies Pvt Ltd (one of the
major holding company for Greenko Group in India).
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Adani Infra (India) Ltd: (BWR AA-(SO))
Adani Infra is a part of the Adani group of companies.
The NCDs are secured by 1.5x pledge of shares of Adani Ports & SEZ (market capitalization of ~Rs.
86,234.43 crs as on May 31,2019), 0.3x of Adani Enterprise (market capitalization of ~Rs.
17,019.56 crs as on May 31, 2019) and 0.2x of Adani Transmission Limited (market capitalization
of ~Rs. 25,944.51 crs as on May 31, 2019).
Ananta Landmarks Pvt Ltd (Unrated)
Ananta Landmarks Pvt Ltd (‘ALPL’) is a part of the Kalpataru Group, a leading real estate developer
based in Mumbai. ALPL was incorporated in January 2002.
Kalpataru Group, founded in 1969 by Mr. Mofatraj Munot, has a well-diversified presence in real
estate development, power generation, transmission & distribution projects, road-bridges, civil
contracting, plastic processing, office supplies, property management and international trading.
In last 17 years, Kalpataru Group has completed 38 projects having saleable area of over 136 lakhs
sq. ft. in Mumbai, Thane & Pune and is in process of developing new 81 lacs sq. ft. in Mumbai,
Thane, Pune & Chennai.
Lending to ALPL is secured against a parcel of land, with a minimum security cover of 1.75x and
also personal guarantee from Mr. Parag Munot (promoter of Kalpataru Group). The company has
already received approval for development of part of the land.
AU Small Finance Bank Ltd: (AA-/A1+ by CRISIL, ICRA, India Ratings and CARE)
Au Financiers Ltd. (AUF) is a Rajasthan-based small finance bank, operating primarily in CV finance
segment and LAP business. AUF has also set up a housing finance subsidiary.
AUF was set up by a first generation entrepreneur Sanjay Agarwal in 1986.
In 2003, AUF started generating portfolio for HDFC Bank as a channel partner.
In 2008, AUF received the first of its multiple private equity capital infusions. Subsequently, it
started originating portfolio on its own book and saw a rapid growth trajectory thereafter.
Asirvad Microfinance Pvt. Ltd. (CRISIL A+)
Asirvad Microfinance Pvt. Ltd. (AMPL) is an NBFC-MFI acquired by Manappuram Finance Ltd,
which held 94% stake in AMPL in March 2019.
In operation since Jan 2008; AMPL presently operates pan-India with a total of 942 branches
(March 2019); managed portfolio of Rs. 3,840 crs (March 2019).
AMPL was promoted by Mr. SV Rajavaidyanathan, an IIT-IIM alumnus and former President at
Reliance Retail Ltd, Chennai. He has ~30 years of experience in financial services. The other
promoter is his brother Mr. SV Krishnamurthy, a qualified CA and CS. He promoted a financial BPO
that has now been taken over by Sundaram Finance.
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The Management comprises of professionals who have relevant experience and skills in Banking,
Microfinance, Finance and HR to carry out their responsibilities.
Barclays Investments & Loans (India) Ltd. (ICRA AAA / A1+)
Barclays Investment & Loans (India) Ltd (BILIL) is wholly owned by Barclays group (57.84% held by
Barclays Bank Plc and 42.16% held by Barclays Mauritius Overseas Holdings Limited).
BILIL’s core business is provisions of Loans Against Security (LAS) and mainly caters to ultra HNIs
and commercial entities owned by these HNIs. These facilities are primarily offered to HNI and
ultra-HNI clients of Barclays Wealth.
The company provides loans against financial security only. Its credit facilities are specifically
designed to meet the clients’ need for liquidity support against financial assets such as - equity
shares, mutual fund units, bonds, debentures, etc. Most of these loans are short-term in nature
Birla TMT Holding Pvt Ltd. (CRISIL A1+), TGS Investment & Trade Pvt Ltd. (ICRA A1+), Trapti Trading
& Investments Pvt Ltd (ICRA A1+), Turquoise Investments and Finance Pvt Ltd (CRISIL A1+)
The above mentioned entities are promoter companies of Aditya Birla Group and hold stakes in
listed entities of Aditya Birla Group, which provides them strong financial flexibility. These NBFCs
mainly invests in shares and provide finance to listed and unlisted group entities. The entities are
ultimately owned by Mr. Kumar Mangalam Birla.
Bhopal Dhule Transmission Company Limited (CRISIL AAA)
BDTCL, a step-down subsidiary of Sterlite Power Transmission Limited was transferred to Sterlite
Group’s recently floated InvIT, India Grid (IndGrid) InvIT.
BDTCL is a power transmission project involving 8 elements, which include 6 transmission lines &
2 substations in the state of MP, Maharashtra & Gujarat. It has 765 kV S/C transmission lines of
891 circuit km (ckm) and 400 kV D/C lines of 53 ckm in Indore-Bhopal-Jabalpur region and
Vadodara-Dhule-Aurangabad region along with two substations at Bhopal and Dhule.
Project is implemented on Build, Own, Operate and Maintain (BOOM) basis and has a transmission
service agreement (TSA) in place for 25 years, extendable by 10 years.
Commission of the project was completed in June 2015 and has been operating at healthy average
line availability of above 99.50%.
Power Grid Corporation of India Ltd. (PGCIL) acts as the Central Transmission Utility (CTU) and is
responsible for billing, collecting transmission charges from the discom’s and distributing the same
among service providers.
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Konti Infrapower & Multiventures Pvt. Ltd. / Edison Utility Works Pvt. Ltd. (Secured by Equity shares
of Zee Ltd) (BWR BBB (SO))
Both entities are entities held by Subhash Chandra & family, promoters of Zee Group.
Zee Entertainment Enterprises Ltd (ZEE), promoted by Subhash Chandra, is one of India’s leading
television, media and entertainment companies with a wide viewer base of over 959 million across
169 countries.
ZEE operates 33 domestic channels and delivers 39 international channels covering all genres of
entertainment.
These NCDs are secured by pledge of shares of ZEE Entertainment Enterprises and security cover
in case of Konti Infrapower and Multiventures Pvt Ltd is 1.18x and Edison Utility Works Pvt Ltd is
1.18x as on May 31, 2019
NCDs also have personal guarantee from Mr Shubash Chandra Goyal
Dewan Housing Finance Corporation Ltd (CARE D)
DHFL is a large housing finance company with a track record of more than 30 years. The company
had Assets under Management (AUM) of ~ 1,26,700 crores, a Networth of ~ Rs 10,750 crores and
total capital adequacy ratio (CAR) of 17.74% as on Dec’18.
The Company reported net profit of Rs 1,187 crores for nine months ended on Dec 31, 2018. The
NCDs were rated AAA by CARE at the time of our investment.
The NCD’s held are secured, with security in the form of first ranking pari-passu charge on present
and future receivables of the Company.
The Company delayed some payment in early June 2019 which has resulted in rating downgrade
to D. The Company has subsequently cleared the delayed payments. We continue to monitor the
developments on the liquidity front as also the strategic sale of various business segments of the
Company
Dalmia Cement Bharat Ltd (ICRA AA/A1+)
DCBL is the cement-business holding company of the Dalmia group. In last 5 yrs, DCBL has
enhanced capacities by way of brownfield and greenfield expansion and Dalmia group has
accelerated its growth through strategic acquisitions.
DCBL holds 75% stake in OCL India Ltd, a major cement player in eastern India with a capacity of
6.7 MT.
DCBL has established its North-East footprint by acquiring 3 cement plants - Calcom Cement,
Adhunik Cement and JP Bokaro Cement resulting in DCBL’s total capacity rising to ~24 MT, making
it the 3rd largest cement group in India.
With a strong presence and robust market share in South and NE India, DCBL company benefits
from an established management, strong operating efficiencies, established brand and caters to
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the relatively attractive cement markets of Tamil Nadu and Kerala. In TN and Kerela, DCBL enjoys
relatively higher capacity utilization, realization and operating profit per tonne of cement sold as
compared to cement companies located in AP and Karnataka.
The NCDs are secured by first exclusive charge on 51% shares of OCL India.
ECL Finance Ltd (ICRA AA, CRISIL A1+)
ECL Finance Ltd (ECLF), an NBFC along with Edelweiss Housing Finance Ltd is the primary lending
arm of the Edelweiss group.
ECLF offers collateralized loans to corporates and promoters, initial public offering financing and
employee stock option plan financing as well as SME loans and loans against property.
East-North Interconnection Company Limited (CRISIL AAA(SO))
East North Interconnection Company Ltd. (ENICL), a 96.2% step-down subsidiary of Sterlite
Technologies, is the developer of 2400 kV double circuit power transmission lines connecting
Assam with West Bengal & Bihar.
Project is developed on BOOM (Build, Own Operate & Maintain) basis, wherein ENICL is
designated as the Interstate Transmission System (ISTS) Licensee.
ENICL has entered into Transmission Service Agreement (TSA) with Power Grid Corporation of
India Ltd. (PGCIL), which is valid for 25 years from date of order i.e. 28th October 2010 to 28th
October, 2035.
PGCIL is acting as the Central Transmission Utility (CTU) and responsible for billing, collecting
transmission charges from the discom’s and distributing the same among ISTS Licensee
The project, consisting only of transmission lines, has high reliability and low maintenance
complexity, given the well-established technology and long design life of such assets. The useful
life of transmission assets is at least 35 years.
Tariff payments to the project are linked only to availability of the assets and not with quantum
of power flow, thus avoiding any volume risk based on transmission line utilization. In fact, the
availability of Power Grid Corporation India Limited’s (PGCIL) assets across the country has
remained above 99% in the last six years which demonstrates the well-established
design/technology of transmission projects.
Given that the project is effectively ring-fenced from sponsor and requires minimal sponsor
support during its life, credit profile is independent of that of the sponsor.
17
Essel Lucknow Raibareli Toll Roads Limited: (CARE AAA)
Essel Lucknow Raebareli Toll Roads Limited (“ELRTRL” or “the Company”) is a SPV owned 100% by
Essel Group.
ELRTRL has implemented and is currently operating a four lane Lucknow – Raebareli section of
National Highway no. 24B (NH–24B) from 12.70km to 82.70km (design length 70km) in the state
of Uttar Pradesh.
The project was awarded by National Highways Authority of India (NHAI) to the company under
competitive bidding process on design, build, and finance, operate and transfer basis.
NHAI will pay semi-annual annuity of Rs. 50.4 Crs over the concession period of 17 years. The
Company has started receiving annuity from 21 July 2015.
Fullerton India Credit Co. Ltd: (CARE AAA, ICRA A1+)
Fullerton India Credit Company Limited (FICCL) is a step-down subsidiary of Temasek Holdings (an
entity held by Govt of Singapore).
FICCL commenced its operations in January 2006 catering primarily to self-employed borrowers.
Over the last few years, FICCL shifted its focus towards secured lending in retail mortgages, rural
lending and SME while moving away from low income segment, which is perceived to be more
vulnerable to economic shocks.
HPCL Mittal Energy Ltd. (HMEL) and HPCL Mittal Pipelines (ICRA AA+)
HMEL was incorporated in 2000 as a JV between HPCL Ltd and Mittal Energy investments Pte Ltd.
HMEL has commercially commissioned a green field refinery complex with 11.3 mmtpa capacity
at Bhatinda (Punjab, in north India) along with a captive power plant of 165 MV.
To meet the crude receipt & storage facilities as well as to transport the crude for the company,
its wholly owned subsidiary HPCL-Mittal Pipelines Ltd (HMPL) has set up a Crude oil terminal (COT)
and Single Point Mooring (SPM) at Mundra Port and a cross-country pipeline for transportation of
crude oil from Mundra to Bathinda.
The majority shareholders i.e. HPCL and Mittal Investments both hold ~49% stake with SBI and
HDFC Life holding ~1% each.
HMEL is managed by a board comprising of 3 directors from HPCL, 3 from the Mittal group and 2
independent directors. Sponsors have committed to maintain minimum 51% shareholding on joint
basis to lenders.
HMEL’s Refinery, with Nelson Complexity Index of 12.6, has the capability to process heavy crude
and produce high value petrochemical products. The products of the refinery meet Euro-III/IV
norms.
The refinery is located in North India, where supply of petroleum products is lower than demand.
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HPCL currently transports products from refineries located in coastal areas in West and South
India. As an inland refinery, the company commands inland premium for its products.
Igarashi Motors Sales Pvt. Ltd. (IMSPL) (ICRA AAA(SO))
IMSPL was promoted as a joint venture by erstwhile Agile Electric Drives Technologies and
Holdings Pvt Ltd (which was amalgamated with Agile Electric Sub Assembly Pvt Ltd (AESPL) in
2011) and ABV Engineers and Consultants Private Limited (ABV).
On May 11, 2017, Mr. P Mukund, acquired 100% stake of IMSPL from AESPL and ABV. Mr. Mukund
is the Managing Director of Igarashi Motors India Limited.
Transaction carries a credit enhancement provided by Axis Capital Ltd by way of an unconditional
and irrevocable underwriting commitment on the NCDs, making the NCDs an obligation of Axis
Capital.
Axis Capital Ltd (earlier known as Axis Securities and Sales Ltd) is a 100% subsidiary of Axis Bank
Ltd and is in the business of providing investment banking and capital market services.
Indostar Capital Finance (CARE AA-)
Indostar Capital Finance (ICF) started its full-fledged operations in Aug 2012 and is engaged in the
business of secured wholesale funding with products ranging from corporate finance, capital
market funding to property finance and acquisition funding.
ICF is sponsored by three private equity funds - Goldman Sachs, Ashmore Group and Everstone
Capital. The sponsors infused core equity of 900 crores at inception, making it one of the best
capitalized and least leveraged NBFC in the market.
ICF has a policy of maintaining adequate liquidity on balance sheet and does not do unsecured
lending.
IOT Utkal Energy Services Ltd (CRISIL AAA(SO))
IOTUL is a SPV which has set up crude and product storage tanks on Build-Own-Operate-Transfer
(BOOT) basis for Indian Oil Corporation’s Paradip refinery in Orissa.
IOTUL achieved successful completion and deemed commissioning of crude oil tankages in
October 2013. The total project cost incurred for the construction of the facility was Rs.3,553 crore
and the BOOT period is 15 years from COD (up to October 2028).
The rating reflects the criticality of IOTUL’s facilities and the strong credit quality of its sole
counterparty – IOC (rated AAA / A1+ by Crisil).
IOTUL’s crude and product storage tanks facility will play a critical role in the operations of IOC’s
Paradip refinery. IOTUL will also benefit from the fixed cash flows arising from its contractual
agreement with IOC.
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Manappuram Finance Ltd (CARE AA/ A1+)
Manappuram Finance (MFL) is a non-deposit-taking NBFC engaged in providing finance against
household gold ornaments.
The company is promoted by Mr. VP Nandakumar, whose family has been engaged in the gold
finance business for more than 60 years and has strong presence in South India.
As on Mar 31, 2019 the company was operating through 4351 branches across 28 states.
MFL enjoys robust capitalization and stable, diverse funding sources. It had AUM of Rs. 19,438
crores as on Mar 31, 2018 and net worth of Rs. 4,524 crores on Mar 31, 2019 (on consolidated
basis).
Nabha Power Ltd (ICRA AAA(SO), CRISIL A1+)
Nabha is a 100% indirect subsidiary of Larsen & Toubro. Nabha was awarded a project by Punjab
State Electricity Board (PSEB) to develop 1400 megawatt super critical coal-based thermal power
project in Rajpura (Punjab). Nabha has in turn contracted a 25-year power purchase agreement
with Punjab State Power Corporation Ltd (PSPCL).
The rating is based on unconditional and irrevocable guarantee from Nabha’s ultimate parent,
Larsen and Toubro Ltd, effectively making this an L&T obligation.
Nuvoco Vistas Corporation Ltd (CRISIL AA)
Nuvoco Vistas Corporation Ltd is a 100% subsidiary of Nirma. Nuvoco Vistas Corporation was
created with the merger of Nirma’s SPV Nirchem (which was floated to acquire Lafarge India) and
Lafarge India.
Nirma has plants in Searles Valley (United States), and in Gujarat and Rajasthan in India. It has set
up a cement plant in Pali with a capacity of 2.28 million tonne per annum (mtpa), which began
operations in November 2014.
Nirma was set up in 1980 by Dr Karsanbhai K Patel to manufacture detergents, and is a privately
held company operations to soaps, chemicals, allied products, and also processing minerals.
Nirma is a privately held company with shareholding by Patel family. Nirma has healthy market
position in domestic soda ash and soaps and detergent businesses supported by high backward
integration.
Jamnagar Utilities & Power Pvt Ltd: (CRISIL AAA)
Jamnagar Utilities & Power Pvt. Ltd. (owned by promoters of Reliance Industries Ltd. – RIL) has set
up power plants for RIL and also operates them.
These plants are at Jamnagar (both in domestic tariff area and special economic zone) and Hazira
with combined capacity of 1116 MW of power and 4490 tonnes per hour of steam.
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Powergrid Vizag Transmission Ltd. (PVTL) (CRISIL AAA(SO))
PVTL was incorporated as a Project SPV in November 2011, and subsequently acquired by PGCIL
in August 2013, after it emerged as the successful bidder in the exercise conducted by REC
Transmission Project Company Limited (the Bid Process Coordinator), pursuant to the guidelines
of Tariff Based Competitive Bidding (TBCB).
PVTL is establishing the project on Build, Own, Operate and Maintain (BOOM) basis. Transmission
License has been granted to PVTL in January 2014, and transmission charges were adopted by the
CERC in the same month.
The exposure is backed by an unconditional and irrevocable guarantee of Powergrid Corporation
of India (PGCIL).
Prestige Estates Projects Ltd (ICRA A+)
Prestige Estates Projects Ltd (PEPL) is the flagship company of Prestige Group with a market
capitalization of Rs. 10,792.5 crs (as on May 31, 2019).
Established in 1986 and currently headed by Mr. Irfan Razack - Chairman & Managing Director,
Prestige has over 28 years of experience in real estate development and is one of the leading real
estate developers in South India.
Has developed a diversified portfolio of real estate projects focusing on residential (apartments,
villas, plotted developments and integrated townships), commercial (corporate office blocks,
built-to-suit facilities, technology parks and campuses and SEZs), hospitality (including hotels,
resorts, spas and serviced apartments) and retail (including shopping malls) segments of the real
estate industry.
Prestige also holds sizeable land parcels of more than 300 acres in Bangalore and other cities.
The transaction involves mortgage on the unsold identified residential units in four under
construction properties of PEPL such that the security cover of at least 1.5x is maintained at all
times during the tenure of the NCDs.
All sale proceeds from the said projects will be deposited in the escrow account and will be
available to investors for prepayment.
70% of sales have already been achieved in the four projects on a combined basis, thereby
significantly reducing pricing and sales risk.
S D Corporation Private Limited (backed by unconditional and irrevocable guarantee of Shapoorji
Pallonji & Co Pvt Ltd – DSRA guarantee for NCD and corporate guarantee for CPs) (CARE AA(SO))
S. D. Corporation Private Limited (SDCPL), a JV between the Shapoorji Pallonji Group and the Dilip
Thacker Group is engaged in real estate development. Its operations are largely concentrated in
Mumbai.
The guarantor, Shapoorji Pallonji and Company Private Limited (SPCPL) is the flagship company of
the Shapoorji Pallonji Group.
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SP Group is a consortium of companies held by the Mistry Family and has diversified businesses
across sectors like construction, water purification, infrastructure development, etc.
Shapoorji Pallonji & Co. Pvt Ltd (SPCPL) is one of India’s leading construction companies and has a
legacy of almost 150 years. It has built diverse civil and engineering structures; executed some
major notable commercial construction projects around the country.
The SP Group is also the largest private shareholder (with an 18.37% stake) in Tata Sons Limited,
the holding company of the Tata Group.
SPCPL, which is held by Mr. Shapoor Mistry and Mr. Cyrus Mistry through various group
companies, functions as the holding-cum-operating company of the SP Group.
SP Jammu Udhampur Highways Ltd. (ICRA AAA(SO))
SP Jammu Udhampur Highway Limited (SPJUHI) is an SPV owned 100% by Shapoorji Group. It
undertook strengthening and four-laning of 64.58 km of Jammu to Udhampur on NH 1A on BOT
and annuity basis, with total project cost of ~Rs.2,200 cr.
The concession period is 20 years (ending Jun-2031) and semi-annual annuity is Rs.202 cr. SPJUHI
achieved COD in Jun 2014.
The structure incorporates, in addition to first charge over all toll receivables, a pledge of 51% of
equity shares of SPJUHI by promoters, with an undertaking that remaining 49% will not be sold or
otherwise transferred without prior approval of NCD holder, no further debt to be raised in the
project, minimum DSCR of 1.05X.
Most importantly, we derive comfort from an unconditional, irrevocable guarantee from
Shapoorji Pallonji Co. (flagship company of the group) to fund DSRA (next payment), further capex,
and any additional O&M/major maintenance or replacement costs, and to make good any annuity
deduction made by NHAI in case of inadequate availability of lanes and also in case of termination
of project; this effectively protects NCD holders from any additional cash outflow apart from those
presently accounted for
The DSRA guarantee and all above undertakings will be unconditional and irrevocable as part of
the Promoter Support Agreement signed between the Sponsors and Debenture Trustee.
Suraksha Realty Ltd (CARE A1+(SO)); Suraksha Asset Reconstruction Co. Ltd (CARE A1+(SO));
M.J.Pharmaceuticals Pvt Ltd (CARE A1+(SO));Unimed Technologies Limited (CARE A1+(SO));
Suraksha Realty,Suraksha Asset Reconstruction Co., M.J.Pharmaceuticals Pvt Ltd and Unimed
Technologies Limited are owned by the promoter group of Sun Pharmaceutical Industries Ltd
(rated AAA / A1+ by Crisil).
Established by Mr. Dilip Shanghvi in 1983, Sun Pharma today has a market capitalization of about
Rs.98,336.74 crs (as on May 31, 2019).
The transaction is structured as a loan against shares (LAS) with a security cover of 1.75 times and
is in the form of pledge of listed shares of Sun Pharma. The transaction has adequate safeguards
and covenants to protect the interests of the investor.
22
Tata Motors Finance Solutions (CRISIL AA, CARE A1+)
TMFS is a 100% subsidiary of Tata Motors Finance Ltd (TMFL).
TMFL has transferred its existing manufacturer-guaranteed and pre-owned vehicle financing
businesses to TMFS. Additionally TMFS will also engage in financing of construction equipment
manufactured by Tata-Hitachi.
We derive comfort from the strong business, financial, and managerial support and commitment
given by TMFL and Tata Motors Ltd to TMFS due to its high strategic importance. TMFS is expected
to receive significant support from Tata Motors.
TMFS will benefit from the representation of Tata Motors senior management on its board.
Additionally, both TMFL and TMFS will have a common managing director.
Tata Power Ltd. (CRISIL AA-, ICRA A1+)
The Tata Power Company Limited (Tata Power), a Tata Group company, is involved in the business
of generation, distribution and transmission of power. It has a license for bulk supply of electricity
in the city of Mumbai.
Tata Power Group currently has a total generation capacity of 8,613 MW on its own books as well
as its subsidiaries. Of the same, 2,027 MW capacity is utilized to meet the power demands in the
License Area in Mumbai. The company supplies power to Bombay Electric Supply & Transport
Undertaking (BEST).
Besides, it also supplies to the Railways and other industrial and High-Tension consumers in
Mumbai apart from direct sales to retail consumers in the License Area.
Tata Power operates the 4000 MW capacity as part of its Ultra Mega Power Project (UMPP) at
Mundra (project COD in March 2013), and the 1050 MW capacity in Maithon (project COD in July
2012) through SPVs.
The company also acquired 30% stake in coal mining companies (KPC and Arutmin, based in
Indonesia) and 26% stake in PT Baramulti Suksessarana Tbk (BSSR), Indonesia, in November 2012,
through offshore SPVs. In January 2014, the company however announced it had signed an
agreement for sale of its stake in PT Arutmin Indonesia.
Also, Tata Power has a power plant at Jojobera (428 MW) which supplies power to Tata Steel Ltd.
Tata Power also has an IPP in Haldia of 120 MW capacity out of which 100 MW capacity is sold on
merchant basis.
Further, the company has installed wind power plants of 461 MW as on date in the states of
Gujarat, Maharashtra, Tamil Nadu and Karnataka along with approx 58 MW solar projects
commissioned in Maharashtra and Gujarat.
23
U P Power Corporation Ltd (India Ratings AA (SO)/A+(SO))
U P Power Corporation Limited (“UPPCL” or “the Company”) is a power distribution company
wholly owned by the UP Government (GoUP). The Company has issued bonds, to fund its
operations, under the provisions of the UDAY (Ujwal DSICOM Assurance Yojana) agreement.
The Company has issued bonds under two structures.
Under the structure rated AA(SO), the bonds are secured by charge on receivables of UPPCL and
also have Reserve Bank of India-backed structured payment mechanism which will ensure timely
servicing of obligations on the bonds.
Under the structure rated A+(SO), the bonds are secured by charge on receivables of UPPCL and
also have a structured payment mechanism which involves charge on subsidy receivables from
GoUP.
Both the structures have escrow mechanism wherein daily collections will be deposited into
escrow a/c which will be used for servicing of bonds. Further, these are secured by an
unconditional and irrevocable guarantee from Govt. of Uttar Pradesh.
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Select Statement Of Holdings In Our Fixed Income Funds As On May 31, 2019
Credit PapersKotak
Banking and
Kotak
Bond
Kotak Bond
Short Term
Kotak
Corporate Bond
Kotak Credit
Risk Fund
Kotak
Dynamic Bond
Kotak Low
Duration Fund
Kotak Mahindra
Liquid Scheme
Kotak Medium
Term Fund
Kotak Money
Market
Kotak
Savings Fund
Aarish Solar Power Ltd.
Aasan Corporate Solutions Pvt. Ltd.
Aashman Energy Pvt. Ltd.
Adani Infra (India) Limited.
Altico Capital India Pvt Ltd
Ananta Landmarks Pvt Ltd.
Asirvad Microfinance Private Limited
Avendus Finance Pvt Ltd.
Bahadur Chand Investments Private Limited
Bharti Enterprises (Holding) Pvt. Ltd.
Bharti Telecom Ltd.
Bhopal Dhule Transmission Company Ltd.
Chambal Fertilisers & Chemicals Ltd.
Coastal Gujarat Power Ltd.
Coromandel International Limited
Dalmia Cement (Bharat) Ltd
Dewan Housing Finance Corporation Ltd.
Divyesh Power Pvt. Ltd.
East-North Interconnection Company Limited
ECL Finance Ltd.
Elena Renewable Energy Pvt. Ltd.
Essel Lucknow Raebareli Toll Roads Limited
Fullerton India Credit Co. Ltd.
Future Lifestyle Fashions Ltd.
Hero FinCorp Ltd.
HPCL Mittal Energy Ltd.
Igarashi Motors Sales Pvt. Ltd.
IIFL Home Finance Ltd.
Indian Hospitals Corporation Ltd
Indostar Capital Finance Limited
IOT Utkal Energy Services Ltd.
JAMNAGAR UTILITIES & POWER PRIVATE LIMITED
Jyothy Fbricare Services Ltd.
Konti Infrapower & Multiventures Pvt. Ltd.
Manappuram Finance Ltd.
Muthoot Finance Ltd.
Nabha Power Ltd.
Nayara Energy Limited
Nuvoco Vistas Corporation Ltd.
Powergrid Vizag Transminssion Ltd.
Pratyash Renewable Pvt. Ltd.
Prestige Estates Projects Limited
Punjab National Bank
Reliable Devices Trust
Rent A Device Trust
S D Corporation Pvt. Ltd.
Sarvoday Advisory Services Pvt. Ltd.
SEI Baskara Power Pvt. Ltd.
SEI Enerstar Renewable Energy Pvt. Ltd.
SEI Mihir Energy Pvt. Ltd.
Shreyas Renwable Energy Pvt. Ltd.
SP Jammu Udhampur Highway Ltd.
Suraksha Asset Reconstruction Pvt. Ltd.
Suraksha Realty Ltd.
Tata Motors Finance Solutions Ltd.
U P Power Corporation Ltd
Utkarsh Small Finance Bank Ltd.
Zuvan Energy Pvt. Ltd.
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Disclaimers:
The above disclosure on credit quality of the debt instruments is based on the information provided by rating
agencies/respective companies. Few schemes of Kotak Mutual Fund have taken exposure in the debt instruments issued
by above companies. In future, the Fund Manager at their discretion may or may not invest in the Debt instruments issued
by above companies. Mutual Fund investments are subject to market risks, read all scheme related documents
carefully
These materials are not intended for distribution to or use by any person in any jurisdiction where such distribution would
be contrary to local law or regulation. The distribution of this document in certain jurisdictions may be restricted or totally
prohibited and accordingly, persons who come into possession of this document are required to inform themselves about,
and to observe, any such restrictions.