INTRODUCTION

Edelweiss is one of the leading financial services company in India. Its current businesses include investment
banking, securities broking, and investment management. It provides a wide range of services to corporations,
institutional investors and high net-worth individuals.
Evolution of the company:
The Edelweiss Group is a conglomerate of 31 entities including 28Subsidiaries and 2 Associate
companies, engaged in the business of providing financial services, primarily linked to the
capital markets. It operates from 43other offices in 19 Indian cities. Since its commencement of
business in1996, it has grown into a diversified Indian financial services company organized
under agency and capital business lines operated by the Company and its thirteen subsidiaries.
The Managing Director and C.E.O of the company is Mr. Rashesh Shah. Edelweiss Capital
Limited(www.edelcap.com), incorporated in 1995, today has emerged as one of Indias leading
integrated financial services conglomerates. The Edelweiss group offers one of the largest ranges
of products and services spanning varied asset classes and diversified consumer segments. Its
businesses are broadly divided into Investment Banking, Asset Management, Broking Services and Loans. The
companys research driven approach and consistent ability to capitalize on emerging market trends has
enabled it to foster strong relationships across corporate, institutional and HNI clients. Edelweiss Capital
Limited employs over 1500 employees, leveraging a strong partnership culture and unique model
of employee ownership.

HISTORY
The Company was incorporated on November 21, 1995 as a public limited company.
Company received its certificate for commencement of business on January 16, 1996. The
Company commenced investment banking activities and registered with SEBI as a "Category I
Merchant Banker" (as defined under the Securities and Exchange Board of India (Merchant
Bankers) Rules, 1992) and thereafter as a "Portfolio Manager" (as defined under the Securities
and Exchange Board of India (Portfolio Managers) Rules, 1993) and as an "underwriter" under
the Securities and Exchange Board of India (Underwriting) Regulations, 1993. The company
entered the business of securities broking in the year 2002 by acquisition of Rooshnil Securities
Private limited which later changed to Edelweiss Securities Private Limited and is presently
known as Edelweiss Securities Limited.
The year 2004 witnessed the foray of the Company into the businesses of insurance
advisory as well as commodities broking and trading. The business of insurance advisory is
carried through the subsidiary, Edelweiss Insurance Brokers Limited. The subsidiary, ECAL
Advisors Limited carries on the business of commodities broking and trading. The Company also
has its presence in non banking financial activities through its subsidiaries, Crossborder
Investments Private Limited (acquired in the year 2000) and ECL Finance Limited (incorporated
in the year 2005) which are NBFCs. Edelweiss Real Estate Advisors Private Limited, which was
previously their subsidiary and their subsidiary Edelweiss Trustee Services Private Limited, were
incorporated in the year 2006, for launching the companys first real estate fund which was
registered with the SEBI as a "Venture Capital Fund" (as defined under the SEBI (Venture
Capital Funds) Regulations, 1996)

The Company raised funds through private equity from Connect Capital Holdings in the

year 2000. Greater Pacific Capital (GPC) concluded a strategic investment in the Company in
October 2005. Apart from fresh Investment in the Company, GPC also bought out Connect
Capital Holdings stake in the Company, thereby taking its equity stake to 20%. The Company
also attracted capital from Galleon Diversified Fund, Heliconia Pte Ltd (which is currently a
wholly owned subsidiary of GIC (Ventures) Pte Ltd held through a wholly owned subsidiary
Lathe Investment Pte Ltd), BIH SA and Shuaa Capital in 2006. Recently, investment in the
company was made by Lehman Brothers Netherlands Horizons BV and Galleon Special
Opportunities Master Fund Limited Galleon Crossover Segregated Portfolio. The Company
does not have any strategic or financial partners.

Capital business lines Treasury.

Companys internal treasury operations manage their excess capital funds. The company
do so by investing their capital in what they believe to be low-risk strategies, maintaining
positions which we can liquidate economically within a few days. They structure their treasury
investments to maintain sufficient liquidity in their portfolio to support the capital needs of their
other businesses.
Wholesale Financing.

The company recently entered the wholesale financing business to provide their high net
worth individual and corporate clients with loans against shares (including promoter financing),
loans to finance subscriptions of IPO shares and loans against mutual fund units. They employed
approximately 843 full time employees as of June 30, 2007, including 40 research professionals.
In fiscal 2005, 2006 and 2007, their consolidated total income was Rs. 770.5 million, Rs. 1,580.0
million and Rs. 3,712.5 million, respectively. In fiscal 2005, 2006 and 2007, their consolidated
profit after taxation and minority interest was Rs. 224.8 million, Rs. 405.5 million and Rs.
1,090.1 million, respectively.

ORGANIZATIONAL STRUCTURE
The Board comprises of ftheir independent and two non-executive directors out of a total of eight
directors, each of whom brings in his own expertise in diverse areas. The focus is on strong
corporate governance. There is an Independent Risk Committee headed by an external director.

BOARD OF DIRECTORS
The Board comprises of ftheir independent and two non-executive directors out of a total of eight
directors, each of whom brings in his own expertise in diverse areas. The focus is on strong
corporate governance. There is an Independent Risk Committee headed by an external director.
Financial Performance at a Glance
Edelweiss over the past few years has delivered strong operating and financial performance. It
has a strong track record of high growth and profitability. Our revenues have grown at a 4-year
CAGR of 149% while our net profits have increased at a 4-year CAGR of 143% . Edelweiss

Group Net worth stood at over Rs. 23 billion including minority interest, indicating a strong
balance sheet. Equity capitalist the primary source of funding for the company besides debt. The
leverage as on 31st March 2008 is below 1:1 indicating the healthy position where by the balance
sheet can be further levered easily for improving the ROEs

Business Overview
Edelweiss operations are broadly divided into Agency and Capital business lines. The strategies
employed ensure that the divide would broadly remain equal among the two. The Agency
business line includes Investment Banking, Broking - both Institutional and HNI, Asset
management and Investment advisory services. The Capital business line includes Lending and
Treasury Operations,

Investment Banking
Edelweiss has one of the most extensive product offerings within Investment Banking in India,
catering to different market and client segments. The verticals within Investment Banking
include Equity Capital Markets, Mergers &Acquisitions Advisory, Private Equity Syndication,
Structured Finance Advisory, Real Estate Advisory and Infrastructure Advisory.

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 Intense servicing, seamless
execution and innovative research products have helped Edelweiss build strong relationships
with over 300 institutional investors, including FIIs and domestic institutional investors.
Research coverage presently extends to over 200 companies across 19 sectors.

Private Client Broking

Edelweiss offers dedicated brokerage services to high net-worth individuals with a strong
emphasis on building long-term relationships with clients. Product offerings include specialized
trading execution for active trading clients and structured products like equity linked capital
protection products.

Wealth Management
The Primary focus is on understanding each HNI client's profile including lifestyle, risk appetite,
growth expectations, current financial position and income requirements to create comprehensive
and tailored investment strategies. Edelweiss offers customized products along with practice
models and advisory teams specializing in servicing the underserved NRI segment. The broad
range of offerings includes asset allocation advisory to Structured Products, Portfolio
Management, Mutual Funds, Insurance ,Derivatives Strategies, Direct Equity, Private Equity, and
Real Estate Funds etc

Asset Management
Alternative Asset Management focuses on advisory/management expertise for Private Equity
Fund, India focused Multi-Strategy Fund, Real Estate Fund and a Bonds Fund. Recent Initiatives
that have been announced include setting up an ARC and a Distressed Assets Fund. On the
Domestic AMC side, Edelweiss Mutual Fund has launched two Debt Funds, one Liquid Fund
and one ELSS Fund.

Treasury
The Treasury Operations in Edelweiss is similar to that of a Treasury in a Commercial Bank and
focuses on liquidity management and yield optimization. This division has adopted a multi
strategy/multi-book approach to diversify and grow its portfolio while imparting liquidity in the
balance sheet. The Company follows a disciplined and conservative approach to cash
management with emphasis on strong risk policies and capital preservation.

Lending
With a deep knowledge and understanding of capital markets, the Companys primary offering in
the lending business includes products such as promoter funding, loan against shares, IPO
financing, Loan against ESOPs etc. Its prudent financing norms and a conservative margin of
safety ensures low or nil non performing loans.

Financial Products Distribution

Among the recent initiatives, Financial Products Distribution focuses on giving advice and
analyzing the best financial product options available in the market. It involves the distribution
of the full range of third party financial products and services for the retail customer

HIGHLIGHTS
EBL has a strong equity research team, which covers approximately 50
6 0 companies within 6 industry categories, with a focus on large and medium capstocks.

The companys Equities Broking division has now expanded to include 215stocks in 19 sectors
accounting for 70 percent of market capitalization

Alternate Asset Managements total asset value currently stands at $625 million

Wholesale Financing division soared to Rs. 141 crore in FY08 from Rs. 7 crore
inthe previous year

Edelweiss is amongst the largest institutional broking firm, enjoying a healthy5% plus market
share in the institutional broking segment

Edelweiss is also in the process of widening its product portfolio by penetrating into product
specific and sector specific nieches which will broaden and strengthen its institutional business.

Asset base of over INR 800 cr. In lending business

It is empanelled with over 40 leading FIIs, FIs, Mutual Funds, Banks andInsurance companies

Awarded as Best Merchant Banker by the Outlook Money NDTV Profit Awards,2008 Ranked
among the top ten players in Annual Bloomberg and Annual Thomson-Reuters Present Chairman
and CEO- Mr. Raskesh Shah Well respected Brand with strong position in relevant market
segment has an integrated business model ,which specializes in providing a wide range
of financial products and services such as investment banking equities, wealth management, and
wholesale finance is well positioned to leverage the growing financial sector in India and become
a significant market player, especially in areas like investment banking, institutional
equities etc. Has a strong research platform with research products, such as fundamental and
alternative research, catering to institutions and HNWIs and retails. The fundamental

Objective of edelweiss capital ltd

The objects of this Issue are to raise funds to
(i) enhance their margin maintenance with stock exchanges;
(ii) establish additional offices and acquire office infrastructure;
(iii) enhance their existing technological capacity;
(iv) prepayment of loans; and
(v) achieve the benefits of listing of the Equity Shares of our Company on the Stock Exchanges.
The main object clauses of the companys Memorandum of Association of their Company and
objects incidental to the main objects enable us to undertake our existing activities and the
activities for which funds are being raised by us through this Issue. They propose to meet all the
requirement of funds entirely from the proceeds of the Issue and, therefore, no amount is
required to be raised through means other than the Issue for financing the same. Accordingly,
Clause 2.8 of the SEBI Guidelines (which requires firm arrangements of finance through

verifiable means for 75% of the stated means of finance, excluding the amount to be raised
through the proposed issue) does not apply to the Issue.
The fund requirement and deployment are based on internal management estimates
and have not been appraised by any bank or financial institution. These are based on current
conditions and are subject to change in light of changes in external circumstances or costs, or in
their financial condition, business or strategy, as discussed further below. their management, in
response to the competitive and dynamic nature of the industry, will have the discretion to revise
its business plan from time to time and consequently their funding requirements and deployment
of funds may also change. This may also include rescheduling the proposed utilization of Net
Proceeds and increasing or decreasing expenditure for a particular object vis--vis the utilization
of Net Proceeds. In case of variations in the actual utilization of funds earmarked for the
purposes set forth above, increased fund requirements for a particular purpose may be financed
by surplus funds, if any, available in respect of the other purposes for which funds are being
raised in this Issue. If surplus funds are unavailable, the required financing will be through their
internal accruals and/or debt. The entire requirement of funds as set out above will be met
through the Net Proceeds. In the event that estimated utilization out of the Net Proceeds in a
Fiscal year is not completely met, the same shall be utilized in the next Fiscal year. We undertake
that the Net Proceeds will not be deployed towards their commodities trading and commodities
broking business.

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