SME Capital Market Watch Newsletter Sep 2013.pdf · SME Capital Market Watch S-CAP SARTHI An initiative by Sarthi Capital Advisors Private Limited SEBI Registered ... To be or not

SME Capital Market WatchS-CAP

S A R T H I

An initiative by Sarthi Capital Advisors Private Limited

SEBI Registered Category I Merchant Banker

September, 2013

Edition

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SARTHI CAPITAL ADVISORS PRIVATE LIMITED III

From Group Managing Director’s Desk

Greetings to all!

Sarthi would be four years old and it has been an exciting and great journey so far. At Sarthi we have inculcated some basic principles like customer satisfaction, knowledge optimization, technology keeping defi nitely SMEs as the central focus of our business plan.

To be or not to be is the question on everyone’s mind for every aspect of life and I guess it is the most frequent question for SME entrepreneurs. The risk capital is not so easily available for the sector to do the funding. There is no fall back and sometimes the entrepreneurs of SME businesses go through do or die situations.

I am Happy to announce the launch of another initiative from Team Sarthi.... “Sarthi Angels Venture Foundation (SAVF)”. We seek to be a major catalyst and driver in creating a robust and vibrant entrepreneurial eco system in India through its various initiatives in Investment Banking, Merchant Banking, Advisory Services and now Angel Funding Network.

Sarthi Angels is a not for profi t organization incorporated under section 25 of Companies Act, 1956 aimed at providing a national voice to the early stage investment community. Sarthi Angels Venture Foundation is a group of high net worth Angels, corporate, PEs/VCs/Seed Funds, who share a passion for nurturing and investing in early stage businesses with solid business models and innovative ideas.

The way business has been conducted has changed over years and will keep changing, from revenue model to valuation model to a trade off. So, do the changes needed on the entrepreneur thought process. What I am doing? Why I am doing? What I am going to get by doing this? What I am going to deliver? Etc. These are few relevant questions in today’s scenario which every SME entrepreneur needs to ask before he ventures in.

We at Sarthi Angels intend to invest and work closely with talented entrepreneurs looking to build great businesses. Sarthi Angel’s vision is to provide the business model the much needed credibility, mentoring and networking access to entrepreneurs through its market reach, multi-disciplinary expertise and strong domain knowledge thereby playing a critical role in fuelling growth in the organization and scaling up the businesses. Please do visit www.sarthiangels.com.

A successful venture is not only the one “At a Right Time and at a Right Place”; it is also being with “The Right Vision, with The Right People and The Right Execution”.

Over a period of time even the investor’s preferences have tilted. It is not only the sector, scale, effi ciency or profi tability, the new serious tilt is also towards corporate governance and compliance adaptability in the businesses seeking capital resources. The entrepreneurs need to have a long term vision for their businesses to reap the real fruits rather than discounting these for short term gains. In the end, I will say, the opportunities are humungous here in India and businesses will fl ourish, if you take them to the next level with a “little change”.

With best wishes…

Deepak Sharmaa

Group Managing DirectorSarthi Group

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Sar�hiangles.com

Smelisting.netKnowledge Portal

Salient Features� Comprehensive content on

procedural and regulatory aspects.

� Eligibility Calculator to gauge your eligibility for SME IPO.

� Knowledge Comer that provides regulatory & market insights.

� Aplatform to interact with the experts on SME Lighting & related topics.

� Latest happenings in SME world

� An in-depth research on listed SMEs & propective IPOs.

& many more...

A One Stop Comprehensive Solution To Sme Listing

BRIDGING THE GAP BETWEEN ENTERPRENEURS AND aNGELS

A Facilitative Platform for Creating a Vibrant Entrepreneurial Eco System In India

Salient Features� Sarthi Angels is a section 25

non-profi t organisation

� Provides a platform to

connect the budding

enterpreneurs with Angels

� Provices Incubration

Services to entrepreneurs

� Our endeavor is to createa

conductive environment

for Entrepreneurs &

provide value investment

opportunities to Angels

�

Email us at: smelisting@sar�hiwm.in

ContentsPARTICULARS PAGE NO.

ARTICLES 1-5

One Person Company - A Boon to state UPS 1

Key Provisions of Companies Act, 2013 3

DEVELOPMENTS 7-9

Market Developments 7

Other Developments 9

RESEARCH COVERAGE 10-10

Silverpoint Infratech Limited 10

GUEST COLUMN 11-11

Maturing of Indian Private Equity Industry

& Need For Specialised Sector Funds 11

IN THE CLASSROOM 12-12

Call Auction 12

MISCELLANEOUS 13-14

What’s in Press? 13

Special Features 14

MARKETS 15-16

SME Market Statistics 15

EVENTS 16-17

Upcoming Events 16

Media Coverage 17

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SARTHI CAPITAL ADVISORS PRIVATE LIMITED 1

ARTICLESONE PERSON COMPANY – A BOON TO START-UPS

Preface -

A country where over half the population is self employed, the much awaited Companies Bill paved a way for the sole proprietorship concern and start ups to enjoy the benefi ts of corporatization. The concept of “One Person Company” (OPC) evolved from the landmark case law Saloman v. Saloman & Co. (1896) which pioneered the process of statue development. In United Kingdom for the fi rst time, the House of Lords on 5th November, 1925 recognized one-man company by express provision in Law related to Natural Person and Company. Later on the concept was recognized internationally.

In India, this concept, was fi rst recommended by an expert committee in 2005 and was subsequently inserted in the new Companies Act so as to provide an option to persons operating under the sole proprietorship model to operate as a company. The earlier statute “Companies Act, 1956” required atleast 2 person to register a company but “Companies Act, 2013” enables a single person to form a company. A single member subscribing to the Memorandum of Association will be the director and member of the OPC. Thus, this new concept is expected to bring a lot of cheer to start-ups as it has addressed some issues and challenges they face.

International Scenario -

Today, several countries do have the concept of a single member company, such as the UK, USA, EU countries, even countries in the Gulf region and neighbouring Pakistan. India is set to join these ranks. A glimpse of the concept of OPC in various Countries is enshrined below:

Countries ConceptChina OPC is promoted by single Promoter who

is both Director and shareholder was introduced in October 2005. Minimum capital requirement to set an OPC is 100000 Yuan. In China 1 person can open only 1 OPC

Pakistan OPC is promoted by single Promoter and 2 individual nominee

United Kingdom

In UK, OPC is governed by U K Companies Act, 2006 and the Companies (Single Member) Private Companies Regulation 1992

Singapore In Singapore, OPC is governed by Companies Amendment Act, 2004

Countries ConceptUnited States Several states permit the formation and

operation of a single-member Limited Liability Company

European Union

The concept of OPC was introduced in December 1989 and members are free to lay down rules to cover the risk but are responsible for the consequences

Prominent Features of OPC Model :

� According to the defi nition of section 2(62) of the new Act, an OPC is a company which has only one person as its member. It can be thus said that it is a company with only one shareholder. Section 3 further clarifi es that an OPC shall be treated as a private company for all legal purposes with only one member. Thus an OPC can operate with a minimum of one shareholder and one director as against the general minimum requirement of two shareholders and directors for a private limited company. The cornerstone of an OPC is that a person can independently carry out business under the company structure which was earlier not possible.

� New Companies Act grants several procedural relaxations to OPC which are not otherwise available to a private limited company. The relaxations are related to AGM, EGM, board meetings fi nancials, ROC reporting etc thus giving many benefi ts over a private limited company.

� An OPC will have a perpetual life. But since the company is owned by a single person, the sole shareholder is required to appoint a nominee who would take charge of the company in case of the shareholder’s death. Such nominee may be changed any time with nominee’s prior consent in writing, which has to be fi led with the registrar.

� Just as a private limited company, carries the suffi x Pvt Ltd, a one person company will carry the suffi x One Person Company (OPC).

Types of OPC:

One = Single

Person = Natural Person (As prescribed in the Draft Rules under Companies Act 2013, Chapter II)

Company = Corporate Structure

Chapter II of Draft Rule under Companies Act 2013

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makes it clear that only individuals who is Indian citizen and resident in India can incorporate an OPC and become a nominee for a sole member of an OPC. Further the draft rules also state that no person shall be eligible to incorporate more than fi ve One Person Companies.

Relaxations offered to OPC

This concept which set its footing in India through Companies Act, 2013 is structured to provide more fl exibility with less compliance and below are certain relaxations provided under the Act to OPC

� Minimum number of director required is 1 but there is no constraint in recruiting more than 1 subject to a maximum of 15

� No compulsion to conduct Board Meeting if only 1 director otherwise 1 board meeting in each ½ of the calendar year and minimum gap of 90 days between 2 such meetings

� Ordinary or Special resolution shall suffi ce the requirement of law if such resolution is communicated, noted in minutes book, signed and dated by sole member and the provisions of sections related to Annual General Meeting, Extra Ordinary General Meeting and Notice can be done away with

� Financial Statements to be signed by 1 director and Annual Report to be signed by Company Secretary and if there if no Company Secretary than by director of the company

� New Act requires Companies to prepare cash fl ow statement as a part of fi nancial statement but it exempts OPC from preparing cash fl ow statements

� Articles of Association would be less comprehensive

Advantages over Sole Proprietor

The general conception which may be perceived by the public is that sole proprietorship and OPC are used as synonyms but OPC is an extension to sole proprietorship.

A single person who expertise’s in multi tasking is given the benefi ts of corporatization under this concept. Some of the prominent advantages are listed below

Par� culars OPC Sole ProprietorLegal En� ty � × Limited Liability � × Legal Requirement (documenta� on)

� ×

Transparency � × Governed by provisions of Companies Act

� ×

Constraints :

Despite the advantages that a one person company offers, it may not be a viable option for everyone. � In case of proprietorship the work involved in

incorporation is minimal since it is limited to a few business-specifi c approvals. In contrast to a proprietorship, an OPC is relatively more procedural and thus involves more paper work which results in relatively higher cost.

� In Proprietorship, the income generated from the business is clubbed with the personal income. Therefore, the tax liability would depend on the slabs in which it falls. However in case of an OPC, it appears that the corporate tax rate of 30% is applicable. Also, the provisions of Minimum Alternate Tax and Dividend Distribution Tax which are applicable to a normal corporate are bound to apply to an OPC. Thus it may happen that a business venture might have to pay much higher tax than what an entrepreneur might have paid if he had not incorporated a company

� Compared to an OPC, expansion of a Private Limited Company is easy. All you need to do is to rope in the investors and allot shares. Further a Private Limited company also has a board from which supervision is possible leading to better Corporate Governance Standards compared to an OPC.

Conversion of OPC into Private Company or Public Company

� Where the paid up share capital of an OPC exceeds fi fty lakh rupees or its average annual turnover during immediately preceding three consecutive fi nancial years exceeds two crore rupees then it is required to be converted to a Private or Public Company

� An OPC is required to give notice to ROC within thirty days of the prescribed conditions becoming applicable. Further the conversion should happen within six months of the date on which above conditions are applicable

� An OPC can be converted into a Private company with minimum 2 members and 2 directors or Public company with minimum 7 members and 3 directors

� The company is also required to alter its memorandum and articles by passing an ordinary or special resolution to give effect to the conversion.

Concluding Remarks

The concept of one person company in the new Companies Act indeed looks promising. This new concept aims to bring a paradigm shift in the Indian corporate regime, bringing it at par with global standards. It has opened the doors for the entrepreneur looking to set up a company all by himself. However, it is still an idea in its infancy and its success could be correctly gauged only after its implementation. Still it is a good start by the government to bring in positive changes into the corporate world and a good start is always considered as half done.

- Rohit Nerurkar

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ARTICLES

KEY PROVISIONS OF COMPANIES ACT, 2013

The Ministry of Corporate Affairs notified 98 Sections of the Companies Act, 2013 on 12th September 2013. These provisions of the Act do not require notification of Rules. A gist of some of the important provisions that came into effect is provided for your reference. Currently, the government is going through the process of receiving suggestions on draft rules and the remaining sections will come into effect after the rule making process is completed.

Sr. No

Sec�on Headings Comment

1. 2 (6) Associate Company Company having significant influence (Control of 20% of Share Capital) excluding subsidiary but includes JV Company.

2. 2 (11) Body Corporate or Corpora�on

Includes Company incorporated outside India, excludes Co-opera�ve society.

3. 2 (12) Book or Paper Includes Books of Accounts, deeds, vouchers, minutes, registers maintained in paper or electronic form.

4. 2 (18) CEO Officer designated as CEO by the Company.

5. 2 (19) CFO Officer designated as CFO by the Company.

6. 2 (20) Company Means company incorporated under this Act or any other previous companies act.

7. 2 (26) Contributory Means a person liable to contribute towards the assets of the Company in winding up.

8. 2 (27) Control Right to appoint majority of directors or management or policy decision (directly or indirectly).

9. 2 (34) Director Person appointed as Director to the Board of the Company.

10. 2 (36) Document Includes summons, no�ce, order, declara�on form and register, whether maintained in paper or in electronic form.

11. 2 (40) Financial Statement Includes Balance Sheet, P & L, Cash Flow, Statement of change in Equity and Explanatory Note.

12. 2 (43) Free Reserves Reserves available for distribu�on of divided but excludes no�onal gains, revalua�on of assets

13. 2 (44) GDR Instrument created by a foreign depository outside India.

14. 2 (49) Interested Director Director, his rela�ve, firm, body corporate or associa�on of individuals in which he or his rela�ve is interested.

15. 2 (51) KMP Includes MD, Manager, CEO, CFO, CS, WTD or Other Officer as may be prescribed.

16. 2 (57) Net Worth Means paid up share capital + Reserves – Loss, Deferred and Misc. expenditure. It does not include reserves created a�er revalua�on of assets.

17. 2 (60) Officer in Default Includes WTD, KMP, Directors, any person on whose instruc�on, a director is accustomed to act (excludes person in professional capacity). In respect of Issue/Transfer of Shares it will include RTA and LM.

18. 2 (63) Special Resolu�on As referred in Sec�on 114 all other are Ordinary Resolu�on.

19. 2 (68) Private Company Minimum Capital Rs. 1 Lac, Transfer of Share restricted, max number of members 200 (except One Person Company, prohibits invita�on to public).

20. 2 (69) Promoter Person named in Prospectus or Annual Return, controls the affairs (directly or indirectly), on whose advise the Board of Director acts, excludes person in professional capacity.

21. 2 (70) Prospectus Includes no�ce, circular, adver�sement or any document invi�ng offers from public.

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Sr. No


22. 2 (71) Public Company Not a private company, Minimum Capital Rs. 5 Lakhs, Private Company subsidiary of Public Company is deemed to be public company.

23. 2 (76) Related Party Means a director, his rela�ve, KMP and his rela�ves, firms, private company, public company (director or his rela�ves hold more than 2%), any person on whose instruc�on, a director is accustomed to act (excludes person in professional capacity)

24. 2 (77) Rela�ve Members of HUF, Spouse or as may be prescribed

25. 2 (78) Remunera�on Money or its equivalent given to a person but excludes perquisites under Income Tax Act

26. 2 (89) Total Vo�ng Power All members present and vote

27. 2 (91) Turnover Means aggregate amount of sale or services

28. 19 Subsidiary Company Subsidiary cannot hold any share in its holding company.

29. 21 Authen�ca�on of Documents Documents may be signed by KMP or Officer authorised by the Board.

30. 23 Public Offer and Private Placement

Issue of Securi�es through Prospectus, Rights or Bonus Issue.

31. 24 Powers of SEBI for Issue and Transfer of shares

For Listed Companies or for a company which intends to get listed. In all other case administered by Central Government.

32. 25 Document for offer for sale Is deemed prospectus.

33. 29 Public Offer of Securi�es To be in demat form only.

34. 30 Adver�sement of Prospectus Adver�sement shall carry objects, capital structure, liability of members, amount of share capital and names of signatories to the memorandum and members of share subscribed by them.

35. 33 Applica�on Form Form to be accompanied with Abridged Prospectus

36. 34 Criminal liability for misstatements in prospectus

Imprisonment for 6 Months upto 10 Years and fine upto 3 �mes the amount involved

37. 36 Punishment for fraudulently inducing persons to invest money

Imprisonment for 6 Months upto 10 Years and fine upto 3 �mes the amount involved

38. 37 Ac�on by affected persons Class Ac�on Suit

39. 39 Allotment of securi�es by company

Allotment only in case of minimum subscrip�on received

40. 40 Securi�es to be dealt with Stock Exchange

In case of public offer

41. 49 Calls on shares Calls to be made on uniform basis

42. 50 Acceptance of unpaid share capital though not called

If authorised by ar�cles, company may accept uncalled capital. However no vo�ng rights on such amount paid un�l it is called for.

43. 51 Dividend if authorised by ar�cles dividend shall be paid in propor�on to the amount paid up on share

44. 57 Persona�on of shareholder Imprisonment of 1 year upto 3 years

45. 58 Transfer of Shares In case of private company in�mate within 30 days (transfer or its refusal); in case of public company freely transferrable

46. 69 Buy Back Crea�on of CRR in case of Buy Back

ARTICLES

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Sr. No


47. 70 Prohibi�on of Buy Back Prohibi�on of buy back through subsidiary company, investment company, company is in default in repayment of deposit, interest, debentures, preference shares, dividend, loan.Three years gap a�er default for buy back.

48. 91 Closure of Register of Members

Company may close register of members for 45 days in a year subject to a prior no�ce of 7 days or a lesser period as may be specified by SEBI for listed companies.

49. 102 Explanatory Statement For No�ce of General Mee�ng.Interest of Directors, Manager, KMP to be disclosed if shareholding exceeds 2%.

50. 103 Quorum for General Mee�ng In case of Public Company with not more than 1,000 Shareholders – 5 members personally present.In case of Public Company with more than 1,000 but less than 5,000 Shareholders – 15 members personally present.In case of Public Company with more than 5,000 Shareholders – 30 members personally present.In case of Private Company – 2 Members

51. 104 Chairman of the Mee�ng Members present at the Mee�ng to elect chairman by show of hands unless a poll is demanded.

52. 105 Proxy Every member shall beginning with 24 hours before the mee�ng can inspect the proxies lodged with the companies. Provided a 3 days prior no�ce is given to the company.

53. 106 Restric�on on vo�ng rights No vo�ng rights in case of calls being unpaid, vo�ng rights cannot be prohibited on any other ground.

54. 133 Accoun�ng Standard Central Government to prescribe Accoun�ng Standard.55. 180 Powers of Board Powers with the consent of members through special resolu�on.56. 181 Contribu�on to charitable

fundsSubject to approval of members if exceeding 5% of average net profit for past 3 FY

57. 182 Contribu�on to Poli�cal Par�es

Subject to approval of BoD not exceeding 7.5% of average net profit for past 3 FY.

58. 192 Non Cash Transac�on involving Directors

Any non-cash transac�on with director require members approval.

59. 194 Prohibi�on of Forward Trading by director and KMP

Forward Dealing in securi�es prohibited. Company can stop such transac�on.

60. 195 Prohibi�on of Insider Trading by director and KMP

Person having access to unpublished Price Sensi�ve Insider Informa�on not allowed to trade in the securi�es of the company.

61. 408 Cons�tu�on of Na�onal Company Law Tribunal

To be cons�tuted by No�fica�on.

62. 410 Cons�tu�on of Appellate Tribunal

To be cons�tuted by No�fica�on.

63. 447 Punishment of Fraud Imprisonment from 6 months upto 10 years.64. 448 Punishment for false

statementImprisonment from 6 months upto 10 years.

65. 449 Punishment for false evidence

Imprisonment from 3 years upto 10 years.

66. 450 Punishment for Miscellaneous cases

Fine upto Rs. 10,000/- or Rs. 1,000/- every day for con�nuing offence.

67. 451 Punishment for repeated default

Penalty to be twice the earlier penalty.

- Nithish Bangera

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MARKET DEVELOPMENTS

� Tiger Logistics (India) Limited,an integrated Third Party Logistics Provider opened the issue for subscription on 12th August, 2013. The Issue was subscribed 1.14 times out of which Retail Investors category was subscribed by 0.43 times while Non Retail Investors category was subscribed by 1.66 times. The Issue is being Lead managed by Sarthi Capital Advisors Private Limited and is its second issue to be listed on BSE SME Platform. Tiger Logistics (India) Limited is the fourth largest company in terms of turnover to be fi led on BSE SME Platform.

� RJ Bio-Tech engaged in the business of developing and marketing hybrid seed varieties in India opened the issue for subscription on 10th September, 2013. The Issue is being Lead managed by Sarthi Capital Advisors Private Limited and is its third issue to be listed on BSE SME Platform.

� Suyog Telematics Limited engaged in the business of telecommunication Poles, Towers, OFC systems and related assets on BOT basis for wireless and other communications service providers fi led a draft prospectus for a public issue of Rs. 4.53 crore. Equity shares are proposed to be listed on the SME Platform of the BSE. The company intends to use issue proceeds to install new Roof Top Poles, new Ground Based Poles, upgrade & replace existing Towers & Poles and issue related expenses.

� Stellar Capital Services Limited a Non Deposit taking Non-systemically Important Non Banking Finance Company (NBFC-ND-NSI) engaged primarily in the business of advancing loans and investing/trading in securities fi led a draft prospectus for a public issue of Rs. 9.00 crore. Equity shares are proposed to be listed on the SME Platform of the BSE. The company intends to use issue proceeds to acquire offi ces on rent / lease in Kolkata and Jaipur, to augment capital base and provide for fund requirements for increasing operational scale with respect to NBFC activities and to meet issue related expenses.

� Newever Trade Wings Limited engaged in the business of trading of iron & steel and other commodities fi led a draft prospectus for a public issue of Rs. 6.32 crore. Equity shares are proposed to be listed on the SME Platform of

the BSE. The company intends to use issue proceeds to augment long term working capital and meeting public issue expenses.

� Satkar Finlease Limited a non deposit taking, NBFC engaged in providing inter corporate loans, personal loans, loans against shares & securities, loans against properties, trade fi nancing, bills discounting and trading fi led a draft prospectus for a public issue of Rs. 13.51 crore. Equity shares are proposed to be listed on the SME Platform of BSE. The company intends to use issue proceeds to boost operations by increasing volume in fi nancing activities, brand building & promotional activities, general corporate purposes and public issue expenses.

� Prabhat Telecoms (India) Limited engaged in the business of design, assemble, and customize import and distribution of mobile handsets, wireless dongles / data-cards, data products and mobile / telecom accessories fi led a draft prospectus for a public issue of Rs. 26.6 crore. Equity shares are proposed to be

DEVELOPMENTS

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listed on the SME Platform of the BSE. The company intends to use issue proceeds to meet the fund requirements for setting up of new assembly line and expansion of existing assembly lines, setting up of own Quality Control and Testing Laboratories, strengthening distribution network & enlarging retail chain format, part-fi nancing incremental working capital requirements, general corporate expenses and to meet the expenses of the Issue.

� Currently 34 companies are listed on SME platforms of BSE and NSE.

Forth Coming IPOs

Name of the Company

Exchange Issue Size (Rs. lakhs)

Issue Price (Rs. Per Share)

Suyog Telemat-ics

BSE 4.53 25

Stellar Capital Services

BSE 9.00 20

Newever Trade Wings

BSE 6.32 10

Satkar Finlease BSE 13.51 18Prabhat Tele-coms (India)

BSE 26.60 80

RJ Biotech BSE 5.00 20Subh Tex (India) BSE 3.50 10Ace Tours Worldwide

BSE 8.00 16

� 6 Other Companies that have been listed on SME Exchanges:

Company Name Date of Issue Open

Date of Issue Close

Subscription

Retail Investors

Non Retail Investors

Total

Money Masters Leasing & Finance

23rd July 2013 26th July 2013 1.503 1.503 1.49

Alacrity Securities 29th July 2013 1st August 2013 0.69 1.68 1.17

GCM Commodity & Derivatives 1st August 2013 5th August 2013 1.09 1.91 1.47

Silverpoint Infratech 12th August, 2013 14th August 2013 0.28 1.97 1.12

VKJ Infradevelopers 12th August 2013 16th August 2013 0.30 1.73 1.01

Kushal Tradelink 14th August 2013 21st August 2013 0.21 2.16 1.17

DEVELOPMENTS

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OTHER DEVELOPMENTS

Innovation fund proposal to reach Cabinet soon

The MSME Ministry is expected to send Rs 5,500-crore

‘India Inclusive Innovation Fund’ proposal to the Cabinet

soon with a view to encourage R&D activities in these

units. The MSME ministry, which had taken the initiative in

consultation with the National Innovation Council to set up

the fund, has circulated a Cabinet note for consultations

to the concerned ministries. The scheme would promote

innovation aimed at improving the competitiveness and

effi ciency of SMEs.

Government panel to suggest easier entry, exit norms

for MSME growth

To improve manufacturing in MSME sector, a government-

panel has suggested easier entry and exit norms along

with easy fl ow of credit in its report. The government had

set up an inter-ministerial committee (IMC), headed by the

MSME Secretary, to look into issues faced by small units

and suggest ways to boost manufacturing in the secto.

Net enables SMEs to increase profi ts: Report by FICCI

and Google

Recent research released by FICCI and Google shows

that the Internet makes a big impact on SMEs in India. A

survey of 951 SMEs in various industrial and geographical

clusters across India shows that of SMEs that use the

Internet, 69% experienced an increase in customers, and

63% an increase in geographic reach, while 44% saw an

increase in employment.

The study found that on average, a SME adopting the

Internet for business operations is able to increase its

revenues by 51%, profi ts by 49%, customer base by

7% and employment growth by 4%. The study revealed

signifi cant opportunities for India’s booming SME sector,

where fewer than 5% of all businesses maintain a web

presence, and also reiterated that SMEs are critical to the

economic growth in India.

NSIC pact with Mauritius body

National Small Industries Corporation today signed an

agreement with Mauritius-based Small and Medium

Enterprise Development Authority to cooperate in areas

of technology transfer, marketing and fi nance, besides

training exchange programmes. Under the agreement,

NSIC would promote a conducive business environment

and empower SMEs to emerge and provide a service

delivery network.

Bengal Govt. to set up holding company to promote MSMEs

The West Bengal government said that it would set up a

holding company to bring all state corporations marketing

different products of MSME sector, under a single umbrella.

Following a cabinet meeting, Chief Minister Mamata

Banerjee announced that the company, which has been

christened “Brand Bengal Marketing Corporation”, will

take the help of experts from varied fi elds to promote its

activities.

New scheme for SME

The Bihar state government has approved a new scheme

for small and medium enterprises (SME). Under this

scheme, the government will provide fi nancial and

managerial help to such entrepreneurs. The state cabinet

approved this scheme, which has been named Chief

Minister SME Cluster Development Scheme.

SMEs likely to play important role in pharma growth story: Report

The small and medium enterprises are expected to play a

signifi cant role in the growth story of the country’s pharma

sector as they contribute 35-40% to the industry in terms

of production with a turnover of about Rs 35,000 crore.

India Micro, Small and Medium Enterprise Report 2013

said that the Indian pharmaceutical industry is highly

fragmented and estimated to have 9,456 units in the SME

segment, which account for around 87% in production by

volume and 40% by value.

Exports of pharmaceuticals products from India increased

from $6.23 billion in 2006-07 to $18.7 billion in 2012-13,

a combined annual growth rate of 21.3%. The Ministry of

Commerce has targeted Indian pharma sector exports to

reach $25 billion by 2014 at an annual growth rate of 25

per cent.

DEVELOPMENTS

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Silverpoint Infratech Ltd (SIL) is a Kolkata based Company offering construction & related services. Incorporated in 1997 SIL was initially engaged in trading. However since FY 2007-08 it has entered into land development, construction services and other related services for civil & structural construction and infrastructure sector projects. SIL bids for development projects and subcontracts specifi c construction and execution work related to projects to third party contractors.

Business Process:SIL cliental base includes Binani Cement Limited, PACL India Limited, Jain Infraprojects Limited, Prakash Constrowell Limited, NKC Projects Private Limited, VKS Projects Limited, Shri Mahavir Ferro Alloys Private Limited and Kivar Infra Private Limited amongst others. SIL’s recent projects include Larsen & Toubro Ltd, Kohinoor Pulp & Paper Pvt. Ltd, Essar Steel India Ltd and Civil Engineers Enterprises Pvt. Ltd.

Key Highlights:Experienced senior management team: SIL is managed by a team of competent personnel having knowledge of core aspects of the Business. The promoters are well experienced in the fi eld of civil construction and are well assisted by Key Managerial Persons who have helped to have long term relations with customers and has also facilitated in securing new customers.

Financial resources: The networth of SIL as on January 31, 2013 is Rs. 4,071.82 Lacs which allows the Company to bid for and undertake higher value projects. Further, most of the clients are private sector entities and SIL has not faced many challenges as far as billing and collections is concerned.

Operational Effi ciency: SIL has a track record of completing projects effi ciently and effectively within the stipulated time period.

Business Strategy:Developing client and vendor relationships: SIL plans to grow business primarily by growing the number of client relationships which will add stability to the business.

Building and Strengthening Execution Capabilities: SIL is working continuously to strengthen their infrastructure, enhance their presence and building the capabilities to execute end to end projects on their own.

Competitive Pricing: To remain aggressive and gain a good market share, SIL believes in offering competitive prices to customers, which will help to sustain the competition and claim a position of strength in the marketplace.

Focusing on Quality Projects and on timely project schedule delivery: SIL intends to focus on building in-house design capabilities, including building on-the-job expertise through participation in design projects, recruiting qualifi ed personnel in order to undertake quality projects and timely project execution thereby maximizing customer satisfaction in all business segments.

Key Challenges:Delay, Modifi cation or Cancellation in Order Book: The projects included in Order Book may be delayed; modifi ed, cancelled or not fully paid for by clients and therefore Order Book may not be an accurate or reliable indicator of our future earnings.

Competitive Bidding Process: Company may not be able to procure contracts due to the competitive bidding process prevailing in the infrastructure industry.

Disruption in activities due to Seasonal Factors: Monsoon season in the 2nd quarter of each Fiscal Year may restrict the ability to carry on activities related to projects and fully utilize resources. During periods of curtailed activity due to adverse weather conditions, SIL may continue to incur operating expenses but project related activities may be delayed or reduced.

Issue Details

Issue Size (Rs. Cr) 12.00

No. of shares on offer (Lakhs)

80.00

Price (Rs.) 15

Face value (Rs.) 10

MCap @ Rs. 15 (Rs. Cr)

12

Nature of IssueSIL has fi led draft prospectus with BSE SME Exchange for offering 40 Lakh Equity Shares each held by M/s. Saffron Vinimay Private Limited and M/s. Shivmangal Commercial Private Limited through Offer for Sale to Public.

Shareholding (%) Pre IPO

Post IPO

Promoters & Promoter Group

100 59.57

Others - 40.43

Relative ValuationThe profi t margins of SIL are lower compared to its peers. The need for effi cient utilisation of capital and focus towards higher margin business is evident. The issue is priced at 50x its March 12 earnings. Compared to its peers the issue appears to be expensively priced.

Financials (Rs. In Cr)

Y/E SIL ASL RPP

Sales 230.75 77.84 259.22

EBITDA% 0.41 20.13 15.03

PAT% 0.21 6.31 4.19

ROCE% 1.21 23.86 31.74

RONW% 1.20 7.65 10.55

ROA% 0.68 5.36 7.85

Debtors days 73.32 7.60 36.86

Creditors days 18.01 18.38 67.76

Debt/ Equity 0.05 1.00 0.83

EPS 0.27 1.26 4.80

P/E 50.00 30.32 6.76

*SIL result is available for 11 months from April 2012 to February 2013

*ASL – Arihant Superstructures Ltd

*RPP – RPP Infra Projects Ltd

SILVERPOINT INFRATECH LIMITED (INITIATING COVERAGE – IPO NOTE)

RESEARCH COVERAGE

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GUEST COLUMN PRIVATE EQUITY COMMUNITY

Mr. Sameer Wagle

Managing Director, Asian Healthcare Fund

Sameer joins the Fund from Nomura Securities where he headed the India team for their Prop book Private Equity division. He has an overall 18 years of investing and operating experience including over 14 years in the Private Equity / Venture Capital space across leading Indian and International platforms like Nomura, IL&FS, Vertex Management and GVFL.

During his PE career, Sameer has invested in and worked closely with a number of companies & entrepreneurs in the Consumer services and Technology sectors in India and South East Asia. He has extensive experience in deal origination, due diligence, deal execution, exits and portfolio

management including working with early stage portfolio companies in areas like corporate strategy, business development, M&A and new business initiatives. Prior to his VC experience, Sameer had operational assignments at two Indian engineering companies viz - Crompton Greaves and DGP Windsor.

Sameer is an Electrical Engineer from the University of Pune, an MBA from SP Jain Institute of Management and Research, and a Chartered Financial Analyst (CFA) from the CFA Institute, US.

MATURING OF INDIAN PRIVATE EQUITY INDUSTRY & NEED FOR SPECIALISED SECTOR FUNDS

Private Equity (PE) is an asset class targeted at

investments largely in companies that are not publicly

traded on stock exchanges. Depending on the stage of

investment Private Equity is further classifi ed into sub-

classes such as Angel Investing, Venture Capital, Growth

Capital & Distressed Investing

Private Equity in its essence helps companies build

businesses through Equity & Quasi Equity Investments.

It is not passive investing but one where the PE Investor

works closely with entrepreneurs to help actualize the

entrepreneur’s vision

The Indian PE industry has its origins in the late 1990’s

when a number of VC fi rms like GVFL, ICICI Ventures and

APIDC Venture Capital were started by leading Indian

Institutions with the help of the World Bank. Since then the

Indian PE industry has signifi cantly grown and today there

is a mature PE eco-system with diverse players consisting

of incubators, angel networks, social venture capital and

late stage PE investors. It is estimated that today over 500

PE investments are made annually in the Indian market

amounting to a value of US$10-14 Bn

During the initial phase of the industry most PE fi rms

were opportunistic with the same Fund team investing

in multiple sectors ranging from Manufacturing to IT.

However as the Indian economy has grown and sectors

have become more mature it has become important for

teams to specialise in specifi c industry verticals in order

to really understand the issues & challenges in building

businesses in that vertical and be able to add value to the

companies the Funds invest in.

This has led to a trend of Funds focused on specifi c sectors

including Agriculture (Rabo, Omnivore), Consumption

(Everstone), Infrastructure (IDFC, IL&FS) and Healthcare

(AHF, Evolvence). Other Funds have added Operating

Partners, typically senior industry professionals, to their

team to help in portfolio management. Given the current

economic slowdown leading to slower growth rates and

lack of exits the value of Sector & Operating expertise in

PE Funds has only increased

A good example of this trend of specialised Funds is Asian

Healthcare Fund (AHF) a premier Private Equity platform

focused on investments in Healthcare and Healthcare

related areas in India. One of the unique differentiators

of the Fund is its strong team consisting of experienced

professionals with diverse & complementary backgrounds

viz team members with strong Operating, Investing &

Medical backgrounds. Specifi cally two senior members

of the team have each spent 25 years plus building &

scaling up differentiated businesses in the healthcare /

consumer industry leading to a deep domain expertise in

healthcare, strong business building & operational skill-

sets and understanding of entrepreneurial mindsets. The

above attributes position AHF extremely well to be able to

leverage on the secular & sustainable Indian Healthcare

growth story by being able to invest in highly differentiated

and fast growing healthcare ventures at attractive

valuations, add signifi cant value in helping the companies

in their growth plans. Some of the investments made by

AHF so far are Mydentist and Healthspring

As the Indian economy continues its growth journey over

the next 20-25 years the Indian PE industry will continue

to play a major role in building world class companies and

specifi cally the trend of specialised sector PE funds is

only expected to strengthen going forward.

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IN THE CLASSROOMCALL AUCTION

What is Call Auction?A call auction is a system where participants place orders to buy or sell units at certain price. Buyers set a maximum price at which they will buy the shares and sellers set a minimum price at which they are willing to sell the shares. In call auction, orders are entered into the system continuously fi lling the auction order book but remain unexecuted till the end of the order entry period when the orders get matched into trades at a single price. Call auctions represent an alternative trading strategy, where the order fl ow over a certain time period is collected, and the market opening price and quantity traded are derived based on aggregated supply and demand for the underlying. In the securities market, the call auction procedure replaces the method of continuously matching orders. Currently, the call auction system is prevalent for stocks in the main indices, like NSE Nifty and S&P BSE Sensex. The call auction system is also applicable to IPO listings and re-listed stocks.

Applications of Call AuctionThe potential areas where Call Auction can be applied to determine market price are –� At open� At close� Resume after trading halt� New and re-listings� Illiquid scrips.

PurposeVarious trading malpractices occur in the market in numerous illiquid stocks leading to unfair fi nancial gains for certain market participants at the cost of large section of un-informed retail investors. This ultimately leads to retail investors losing confi dence in the equity markets and fl eeing the same. Thus, Market Regulator SEBI (Securities and Exchange Board of India) introduced the concept of call auction system to curtail market manipulation in illiquid stocks and restore the investor confi dence.

Call Auction Sessions1. Call Auction at Pre-Open Session The pre-open session is for a duration of 15 minutes

i.e. from 9.00 a.m. to 9.15 a.m., out of which fi rst 8 minutes are for order entry, order modifi cation and order cancellation, next 4 minutes for order matching and trade confi rmation and remaining 3 minutes are for transition of unexecuted orders from pre-open session to normal trading session.

2. Call Auction at Special Pre-Open Session

IPOs and Re-listed scrips are traded in the Special Pre-open session only on the fi rst day of their trading (in case of IPOs) and recommencement of trading (in

case of re-listed scrips). The order entry period lasts for 45 minutes during which orders can be entered, modifi ed and cancelled. This period can close randomly during the last one minute (between 44th and 45th minute). Random stoppage is system driven. The next step is the order matching and confi rmation period which lasts for 10 minutes during which the opening price will be determined and disseminated and trades will be executed. The last 5 minutes comprises the buffer period before the start of the continuous trading session.

3. Periodic Call Auction Session

All equity stocks which are classifi ed as illiquid will be part of Periodic Call Auction Session. The criteria of illiquid scrips being:

1. The average daily trading volume of particular scrip in a quarter is less than 10000;

2. The average daily number of trades is less than 50 in a quarter;

3. The scrip is classifi ed as illiquid at all exchanges where it is traded.

The periodic call auction system lasts for an hour throughout the day with the 1st session starting at 9:30 am in the morning and last session ending at 3:30 pm. In every session, fi rst 45 minutes are reserved for the purpose of order entry, order modifi cation and order cancellation only, followed by 8 minutes for order matching & trade confi rmation. The last 7 minutes comprises the buffer period for closing the current session and facilitating the transition to the next session. The session can close randomly during the last one minute of order entry between the 44th & 45th minute. Such random closure is system driven. All un-matched orders remaining at the end of a call auction session will be cancelled and returned. A maximum price band of 20% is applicable on the scrips through the day.

Advantages of Call Auction

Call Auction method of trading has several advantages –

� It reduces price volatility due to multiple matching of orders at a single price.

� Greater liquidity due to the collection of orders providing a deeper demand-supply schedule.

� Better Price discovery as errors get reduced due to collection of orders.

� It leads to reduced market impact as any given size of the order is small in relation to the counterpart orders when the latter are collected over time.

� It leads to lower cost of transaction as the trades executed during the call auction session do not incur impact cost.

� It acts as a fairer market especially for small, non professional investors because all trades get executed at the same price. Also the simultaneity of trades eliminates the possibility of front running customer orders in the same security

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MISCELLANEOUS

Amid market gloom, SMEs raise capital

Even as big companies fi nd it diffi cult to raise capital from the market, smaller ones are defying the challenging market conditions. In the past month, the Street has recorded half a dozen initial public offerings (IPOs) worth Rs 70 crore from small companies.

These IPOs, worth between Rs 2 crore and Rs 28 crore each, were launched on the BSE SME (small and medium enterprises) platform. Sources said approvals for another three-four companies were in place and these offerings could be launched in the coming weeks.

Most of these companies were from sectors such as broking and infrastructure, where investors had turned wary and valuations had taken a beating. Broking fi rms Alacrity Securities and GCM Commodity and Derivatives raised Rs 9 crore and Rs 7 crore, respectively, while infrastructure fi rms VKJ Infradevelopers and Silverpoint Infratech have launched issues worth about Rs 12 crore each. Money Master Leasing, a non-banking fi nancial company, has launched an IPO to raise Rs 2 crore, while paper products fi rm Kushal Tradelink is seeking to raise about Rs 28 crore from an IPO, which would be open till August 21.

The last IPO by a major company was that of Just Dial in May, through which the company raised about Rs 900 crore. Experts said SME IPOs, unlike large issues, were largely agnostic to market conditions, as the amount raised was small and a small group of “informed investors” invested in these. “Most SME issues are subscribed, as these are small-sized. Also, investors only invest after understanding the company from the management or merchant bankers. Such issues are only for large and informed investors,” said a BSE offi cial.

The SME platform is for small companies, with face value capital of less than Rs 25 crore. Also, the investment ticket size for investors is at least Rs 1 lakh, against about Rs 10,000 for other IPOs. SME issues have to be entirely underwritten by merchant bankers, who also have to provide for market making. There are about 30 companies listed on the BSE SME platform.

Source : Business Standard

WHAT’S IN PRESS?

“SMEs have a leading role to play in creating jobs. I recognise the importance of this sector and note that several industrialized countries are taking steps to increase the fl ow of credit to SMEs.”

Manmohan Singh,Prime Minister, India

“The current slowdown is expected to affect jobs and, therefore, the banks need to promote small and medium enterprises in particular to create further employment opportunities.”

Prithviraj Chavan,Maharashtra Chief Minister

“Considering the large emerging workforce from small innovative companies, the industry should make every effort to provide services for the MSME sector to enhance their growth.”

- Som Mittal,President, NASSCOM

QUOTES

MISCELLANEOUSSARTHI GROUP LAUNCHES ITS OWN ANGEL NETWORK

Sarthi Group is happy to announce the launch of its new initiative... “Sarthi Angel Venture Foundation (SAVF)”. Sarthi Group was founded by Mr. Deepak Sharmaa and Mr. Aanand Lakhotiaa in the year 2009. The Group provides a complete range of Customized Solutions to Individuals and Corporate under one roof offering best in the class services in various fi nancial service domains. Sarthi seeks to be a major catalyst and driver in creating a robust and vibrant entrepreneurial eco system in India through its various initiatives in Investment Banking, Merchant Banking, Advisory Services and now Angel Funding Network.

Sarthi Angels is a not for profi t organization incorporated under section 25 of Companies Act, 1956. At Sarthi Angels, we are committed to maintain a sustainable deal fl ow, perform extensive research, and carry out a thorough due diligence and also act as a mentor & facilitator between an Entrepreneur and Angels. The Network intends to work closely with talented entrepreneurs looking to build great businesses. We believe in enhancing the success rate of early stage businesses through continued inputs on strategy and high quality mentoring by Angels. The vision is to provide the business model the much needed credibility, mentoring and networking access to entrepreneurs through its market reach, multi-disciplinary expertise and strong domain knowledge.

Angel investment could be from INR 50 Lakhs up to INR 10 Crores for seed stage, early stage and venture stage funding, and with strategic exit over 3 to 5 year time frame through an IPO, M&A or further round of funding.

Focus Investment sectors:

� Healthcare, Biotech, Pharma & Life Science

� Agriculture/ Food Processing

� Clean Tech & Water

� Consumer Products & Services

� Media, Entertainment & Mobile VAS

� Ecommerce, IT Products & related services

Benefi ts to Entrepreneurs Benefi ts to Angels

Helping in making the Business Plan Presentation ready

Enviable Deal Flow

Providing before-hand due diligence questions Rigorous Screening

Standardized legal documentation High Quality & High Growth Opportunities

A Professional lead to guide throughout the Process

Effi cient Networking Platform to connect with fellow Angels, Professionals, PE/ VCs, SMEs

Experienced Angels as Members

Effi cient Process Forwarding of Business Proposals after Initial Screening

Providing Capital Connections Profi le Building Opportunity

We believe that an entrepreneurship-led economic growth is always more inclusive and sustainable. Sarthi Angels is poised to provide a valuable guidance and hand-holding to the budding entrepreneurs with the clear objective of fuelling the growth in the organizations and creating value for Angels

Investment Process

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SME MARKET STATISTICSSl No Company Closing# %Returns* 52 Week High 52 Week Low

1. Anshus Clothing 31.20 15.56 37.00 22.502. BCB Finance 25.25 1.00 27.50 24.503. Bronze Infra 7.40 -50.67 20.10 6.204. Comfort Commotrade 28.20 182.00 45.95 10.105. Jointeca Education 14.50 -3.33 18.00 14.506. Jupiter Infomedia 25.80 29.00 25.80 22.007. Max Alert 90.00 350.00 99.00 57.108. Looks Health 287.00 617.50 302.75 40.309. RCL Retail 16.95 69.50 23.40 7.5510. Sangam Advisors 24.95 13.41 25.85 19.0011. SRG Hsg Fin 90.95 354.75 94.00 19.9512. Eco Freindly 93.15 272.60 102.85 21.1013. Esteem Bio 87.35 249.40 87.35 25.2514. Sunstar Realty 42.70 113.50 42.70 21.2015. Kavita Fabrics 33.60 -16.00 45.25 33.6016. Channel Nine 44.55 78.20 44.55 26.2517. Bothra Metals 30.00 20.00 34.10 24.8518. Lakhotia Polyesters 34.00 -2.86 36.60 33.8519. GCM Securities 168.00 740.00 228.00 65.0020. Ashapura Intimates 70.75 76.88 76.15 46.4021. Samruddhi Realty 46.00 283.33 51.00 12.7522. HPC Biosciences 107.40 206.86 113.60 37.2523. Onesource Mediatech 4.75 -66.07 13.00 4.3024. India Finsec 16.20 62.00 19.40 9.5525. eDynamics Solutions 47.50 375.00 47.50 25.4026. Money Masters Leasing & Finance 17.00 13.33 19.65 16.2527. Alacrity Securities 8.60 -42.67 13.25 6.10

28. GCM Commodity & Derivatives 13.30 -33.50 21.25 10.15

29. Kushal Tradelink 35.75 2.14 36.00 35.00

30. Siverpoint Infratech 13.50 -10.00 14.80 12.40

31. VKJ Infradevelopers 21.10 40.67 26.25 21.05

32. Thejo Engineering 400.00 -0.50 405.00 297.45

33. Veto Switch Gear 52.50 5.00 58.00 50.10

34. Opal Luxury 111.00 -14.62 135.00 97.60

*Aboslute returns since IPO. # Closing prices as on 10th September, 2013

GLOBAL SME MARKET

Closing # % Returns YTD

BSE SME IPO 338.7 145.83

TSE MOTHERS 717.42 72.86

CHINEXT PRICE INDEX 1,263.59 79.15

FTSE AIM All Share Index 773.5 8.03

TSX Venture Composite 942.85 -23.95

Hong Kong GEM Index 423.23 10.94

# Closing Values as on 10th September, 2013

MARKETS

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MARKET WATCH

Particulars Bothra Metals & Alloys

Ashapura Intimates

RCL Retail SRG Housing

Eco-friendly Sunstar Realty Silverpoint Infratech

A. Valuation / Market Cap (Rs. Crore)

Pre Issue Net Worth 20.82 10.98 5.60 4.90 8.606 5.54 40.27

Issue Size 12.21 21.00 5.80 7.00 7.515 10.62 12.00

Market Capitalization* 55.55 137.73 20.87 73.49 92.27 85.10 26.72

B. Price Pattern (Rs. Per Share)

Issue Price 25.00 40.00 10.00 20.00 25.00 20.00 15

CMP (Face Value Rs. 10)* 30.00 70.75 16.95 90.95 93.15 42.70 13.50

Particulars Channel Nine

Max Alert Samruddhi Realty

HPC Biosciences

Anshu Clothing Jupiter Info Money Masters Leasing & Finance

C. Valuation / Market Cap (Rs. Crore)


Issue Size 11.67 8.00 2.60 15.75 5.10 4.10 2.00


D. Price Pattern (Rs. Per Share)

Issue Price 25.00 20.00 12.00 35.00 27.00 20.00 15.00

CMP (Face Value Rs. 10)* 44.55 90.00 46.00 107.40 31.20 25.80 17.00

Particulars Esteem Bio Kushal Tradelink

Alacrity Securities

VKJ Infradevelopers

Opal Luxury Veto Switch Gear

Thejo Engineering

E. Valuation / Market Cap (Rs. Crore)


Issue Size 11.25 27.75 9.00 12.75 12.00 25.00 19.00


F. Price Pattern (Rs. Per Share)

Issue Price 25.00 35.00 15.00 15.00 120.00 50.00 402.00

CMP (Face Value Rs. 10)* 87.35 35.75 8.60 21.10 111.00 52.50 400.00

*Closing prices as on 10th September, 2013

MARKETS

UPCOMING EVENTS

Name of Event Place Date OrganizerMalaysia - India SME Forum & Business Matching

Malaysia 23rd to 24th September, 2013

The Consortium of Indian Industries in Malaysia & SME Corporation Malaysia

EU-India CleanTech SME & Investor Forum 2013

Bengaluru 25th to 26th September, 2013

The European Business and Technology Centre

Start-Up Entrepreneurs Summit Mumbai 4th October 2013 SME Chamber of India2nd Edition Of Annual Flagship Activity - Gujarat SME Banking Conference

Ahmedabad October 2013 SME Chamber of India

National Level Activity - SME Finance & Investment Summit

Mumbai October 2013 SME Chamber of India

Annual Na� onal Awards - SME Innova� on Excellence Awards

Mumbai October 2013 SME Chamber of India

Global Entrepolis Conference Mumbai October 2013 SME Chamber of India

TIGER LOGISTICS LISTING CEREMONY

Tiger Logistics (India) Limited, an integrated Third Party Logistics Provider got listed on BSE SME Exchange on September 12, 2013. The Issue was being Lead managed by Sarthi Capital Advisors Private Limited and is its second issue to be listed on BSE SME Platform. Tiger Logistics (India) Limited is the fourth largest company in terms of turnover to be listed on BSE SME Platform. The issue was subscribed 1.14 times.

EVENT - MEDIA COVERAGE

LAMP LIGHTING CEREMONY

TIGER BEING FELICITATED

BSE SME EXCHANGE ADDRESSING THE AUDIENCE

THE TIGER SPEAKS

SARTHI BEING FELICITATED

THE MOMENT OF GLORY !!!

Bridging the Gap

DISCLAIMER

This document has been prepared by Sarthi Capital Advisors (P) Limited as a part of research only. In rendering this information, we assumed and relied upon without independent verifi cation, the accuracy and completeness of all information that was publicly available to us. The information has been obtained from the sources we believe to be reliable as to the accuracy or completeness. This document should not be construed as an offer to sell or solicitation to buy the securities and the information contained herein is meant exclusively for the recipient and is not for circulation, publication or reproduction in any manner What’s oever. This information is given in good faith and we make no representations or warranties, express or implied as to the accuracy or completeness of the information and the expectation of income and capital appreciation and shall have no liability to you or your representatives resulting from use of this information. We shall not be liable for any direct or indirect losses, loss of profi ts, hardships, inconveniences arising from the use thereof and accept no responsibility for statements made and information provided and you would be relying on this document at your own risk.

Sarthi Capital Advisors Private LimitedSEBI Registered Category I Merchant BankerSEBI Registration No : INM000012011

Mumbai 159/11, Amar Brass Compound,Vidya Nagari Marg,Kalina, Santacruz (E),Mumbai – 400098Landline: 022-26528671-72Fax: 022-26528673

New DelhiAnthem House,E-360, 1st Floor,Nirman Vihar, Delhi - 110092Landline: 011-22449817, 011-22449815Fax: 011-22439816

CONTACT US Please write to us with your feedback,suggestion or query at [email protected]. sarthiwm.in

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