EDELWEISS MAIDEN OPPORTUNITIES FUND – Series 1 (A close ended equity scheme investing across large, mid and small cap stocks)

Investing in India’s Prospective Opportunities

1

“When was the last time, when you did something for the first time”

NFO Period – February 2, 2018 to February 16, 2018

Robust Capital Supply EPFO expected to increase equity allocation Individuals are shifting from physical assets to financial assets

There are structural tailwinds to IPO market activity

Robust Capital S EPFO expected t Individuals are s financial assets

Stable & Pro-business Govt. GST, RERA, AADHAR, IBC among few key reforms Increased confidence to invest in India

Strong IPO market; IPOs of

INR 1,00,000+ Cr in last 2yrs

Pent-up Capital Demand Capital for growth PE exits Subsidiary listing by conglomerates to unlock value PSU divestments

Strong GDP Growth India is amongst the fastest growing economies Generating high interest among FIIs & DIIs to invest

2

IPO Market activity has picked up in recent years

Robust IPO activity has created multiple maiden

investment opportunities

Companies from 18 different sectors have raised funds

in FYTD-18

IPOs contribution to market-cap at 7 year high

0 0.5 1 1.5 2 2.5 3 3.5

0

50

100

150

FY12 FY13 FY14 FY15 FY16 FY17 FY18*

% o

f Mar

ket-

cap

INR

tn.

India market Cap (INR Tn)

Contribution through new listing (RHS)

Source: Capitaline. IPO Activity data till 15th Dec 2017. *FY18 till December 2017. Fund raising includes IPO, FPO, QIPs and SMEs

33,946

18,340 19,307

36,362

6,044 6,770

1,284 1,201

11,362

26,372

71,434 108

39 22

66

40

13 5 7 21 27

38

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 *

Amount Raised (Rs. Cr.) No. of IPOs

IPO Activity at decade high

3

…and will continue to remain buoyant

PE/VC Exits data source: Bloomberg. *Data till Nov 2017. PE/VC Investment data source: Bain PE database which includes real estate and infrastructure. PE – Private Equity, VC – Venture Capital

0

5

10

15

20

25

0 200 400 600 800

1000 1200 1400

2015 2016 2017*

PE/VC Exits through IPOs

Amount ($mn) No. of IPOs (RHS)

IPOs have become a favoured route for PE/VC

investors to exit, given the buoyancy of public

markets and liquidity in the system.

With large number of PE/VC still waiting to exit, IPO

market is expected to remain buoyant.

0

200

400

600

800

1000

1200

0

5

10

15

20

25

2009 2010 2011 2012 2013 2014 2015 2016

PE/VC Investments in India

Amount ($bn) Number of deals (RHS)

India got massive PE/VC investments during 2010 to

2015 as capital raising through public market was

difficult.

As IPO market has become active now, most PE/VC

investors are planning their exits.

4

FII Participation in IPOs is aiding demand

FII participation in primary market out-scores secondary market

Institutional Fund Flows USD Bn

FII Secondary FII Primary

2011 -0.13 -0.64

2012 22.47 2.13

2013 17.78 1.97

2014 14.07 2.09

2015 -0.18 3.45

2016 1.63 1.27

2017 1.37 6.96

FIIs are more active in primary market than in secondary market since 2015.

Since CY15 FIIs have bought USD 2.82Bn in the secondary market while they deployed USD 11.68Bn via primary market

Data till 15th Dec 2017. Source: Bloomberg 5

IPO investing has been rewarding

BSE IPO Index has outperformed Nifty 500 TRI by 104% since the start of this bull cycle - Jan 2014

50

100

150

200

250

300

350

S&P BSE IPO Index Nifty 500 TRI

Data till 15-Dec 2017. Source: Bloomberg. Index rebased to 100. BSE IPO Index is PRI basis as TRI values are not available

203%

99%

6

ACCESS

SELECTION POST LISTING GAINS

...remains key while investing in IPOs

“Investing in tomorrow’s leader today is more

critical than anything in investing”

7

POST LISTING opportunities are often missed

Most investors exit immediately after listing while missing on gains which come through after that

Quartile (1) Average Listing Day Gain (a)

Average Gain in a Year from IPO Price (b)

Top Quartile 49% 82%

2nd Quartile 13% 46%

3rd Quartile -5% 19%

4th Quartile -38% -44%

Missed Opportunities (a-b)

Companies go public when they have earnings momentum.

Capturing this earnings momentum is what most investors miss by exiting on listing day.

A structured approach to evaluate and thorough research is a must to “Time the exit” and optimize post listing returns.

Internal Analysis. Only for illustration purpose. 1) Includes all IPOs done from 01-Jan-11 to 31-Jul-17, Quartiles by Listing Day Gain 8

Company Listing Date Profit/Loss HDFC Standard Life Insurance Company Ltd Nov 17, 2017 33% Khadim India Limited Nov 14, 2017 -11% The New India Assurance Company Limited Nov 13, 2017 -31% Mahindra Logistics Limited Nov 10, 2017 1% Reliance Nippon Life Asset Management Ltd Nov 6, 2017 -1% General Insurance Corporation of India Oct 25, 2017 -15% Indian Energy Exchange Ltd Oct 23, 2017 -4% MAS Financial Services Ltd Oct 18, 2017 41% Godrej Agrovet Limited Oct 16, 2017 19% Prataap Snacks Limited Oct 5, 2017 43% SBI Life Insurance Company Ltd Oct 3, 2017 -3% ICICI Lombard General Insurance Company Ltd Sep 27, 2017 18% Capacit'e Infraprojects Limited Sep 25, 2017 57% Matrimony.com Limited Sep 21, 2017 -10% Bharat Road Network Limited Sep 18, 2017 -5% Dixon Technologies (India) Limited Sep 18, 2017 82% Apex Frozen Foods Ltd Sep 4, 2017 362% Cochin Shipyard Ltd Aug 11, 2017 25% Security and Intelligence Services (India) Ltd Aug 10, 2017 46%

Right SELECTION is important

Performance of recent IPOs shows that not all IPOs are investment worthy

Data till 15-Dec 2017. Source: Bloomberg. Total returns from issue price. The Company mentioned above is for illustration purposes only. The scheme may or may not hold the same in its portfolio. Past performance may or may not sustained in future. 9

A dedicated Fund can provide better ACCESS

Exposure to recent IPOs through diversified equity funds is limited

Company Returns No. of Funds Average Exposure

Apex Frozen Foods 348% 4 1.78%

CDSL 151% 34 1.55%

Shankara Building Products 272% 14 1.26%

Dixon Technologies 121% 37 1.25%

Capacite Infraprojects 57% 41 1.23%

Avenue Supermarts Ltd. 315% 59 0.97%

A dedicated fund investing in recent IPOs provides better ACCESS and thereby maximising gains

Returns Data till 12-Jan 2018. Exposure details as on month end in which the stock was listed on exchanges Source: Bloomberg. Total returns from issue price. The Company mentioned above is for illustration purposes only. The scheme may or may not hold the same in its portfolio. Past performance may or may not sustained in future. 10

Edelweiss Maiden Opportunities Fund – Series 1

Presenting

IPO Access Selection Post Listing Gains

11

“If you make the opportunity, you’ll be first in position to take advantage of it”

Investment Strategy

Stock Selection

Style

Protection

Profit Booking

Best 20 – 30 ideas from recently listed and upcoming IPOs

Multi-cap and Sector agnostic approach

Endeavors to protect downside through put options

Aims for systematic profit booking through dividend payouts*

12 *Dividend payout is subject to availability of distributable surplus and at the discretion of the Trustee.

Portfolio Construct

Recently Listed Companies

IPOs

Hedging

Rebalancing

Upto 80% shall be invested in maiden ideas from recently listed companies

Upto 15% will be invested in new IPOs to capture listing and future potential gains

Upto 5% of the portfolio will be used to buy long dated put options to hedge market risk

Systematic rebalancing of portfolio to ensure profit booking

These are indicative levels and may change at fund managers discretion 13

A Process Driven Approach to invest in recently listed companies

Universe Selection

Financial Analysis

Qualitative Analysis

Risk Management

• IPOs listed in the past 3 years with a issue size > 100cr

• Revenue Growth • Earnings Growth • ROE/ROIC • Consistency of

Growth

• Anchor Investors • QIB Demand • Management

Quality • Use of funds

• Marketcap Limits • Eye on Liquidity • 25% Sector Limit • Valuation discipline

for systematic exits

A process driven approach helps in SELECTION of quality companies and systematic EXIT MANAGEMENT while maximizing overall returns 14

In-depth Company Analysis of upcoming IPOs

Premised on SELECTING companies with fundamentally strong building blocks

High discipline to maintain a HIGH MARGIN OF SAFETY in pricing, in order to ensure that value creation in company translates into investor returns

PRICE / VALUE CONSIDERATIONS

STRONG CORE FOUNDATION

Pricing/Margin of Safety

Market Leadership

Position

ROE, ROCE, EPS and Revenue Growth

Long Term Business

Fundamentals

High Quality Promoter

Theme Governance

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Recently listed MAIDEN opportunities

New sectors are being introduced offering unique opportunities to play India’s growth story g introduced offering unique opportunities to play India

Companies from 18 different industries raised funds this year

Diagnostics Insurance

Staffing Solutions

Stock Exchange & Depositories

Asset Management Companies

Retailing

16

Ample Maiden Opportunities Ahead

List of Upcoming IPOs Prince Pipes & Fittings Ltd. Acme Solar Holdings Ltd. Hindustan Aeronautics Ltd. Seven Islands Shipping Ltd.

Barbeque Nation Hospitality Ltd. IRCTC Ltd Rail Vikas Nigam Ltd Go Air Lemon Tree Hotels Bandhan Bank Reliance General Insurance Ltd Srei Equipment Finance Ltd Bharat Serum And Vaccines Ltd. Policy Bazar.Com GMR Airports National Stock Exchange ICICI Securities Lite Bite Foods Kalyan Jewelers

21 14

19

46

31

57

0

10

20

30

40

50

60

2012 2013 2014 2015 2016 2017

No. of New Fillings

PE/VC exits and strong demand owing to financialisation of household

savings will see increased number of IPOs in immediate future.

This will continue to create maiden investment opportunities.

Data Source: SEBI and www.chittorgarh.com. The above is only for illustration purpose and is not recommendation to invest in any company. The Scheme may or may not invest in the companies mentioned above. 17

Why invest in Edelweiss Maiden Opportunities Fund – Series 1

Heightened IPO activity provides good investment opportunity

SELECT best recently listed and upcoming IPOs through a process driven approach

ACCESS to large number of IPOs with LIMITED Money

Traditional Diversified Mutual Funds give limited exposures to IPOs

Endeavours to protect downside through hedging and aims for systematic profit booking by declaring dividends*

He

SE

AC

Tra

Enbo

18 *Dividend payout is subject to availability of distributable surplus and at the discretion of the Trustee.

Fund Features

NFO Period 2nd Feb 2018 to 16th Feb 2018

Maturity Date 28th June 2021 (In case the maturity date happens to be a non-Business Day, the immediately succeeding Business Day will be considered as the maturity date)

MICR Cheques Till end of business hours on 15th Feb 2018

RTGS and Transfer Cheques Till end of business hours on 16th Feb 2018

Switches Switches from equity schemes and other schemes – 16th Feb 2018; Till cut off time (specified for switch outs in the source scheme)

Plans and Options Direct and Regular Plan with Growth and Dividend Payout & Sweep Option

Offer of units Rs. 10/- each during the New Fund Offer Period

Minimum Application Amount

Rs. 5,000/- (plus in multiple of Re. 10)

Liquidity To be listed on exchange

Fund Manager Bhavesh Jain and Bharat Lahoti

Benchmark Nifty 500 Total Return Index 19

The Edelweiss Advantage

“Synergy – The bonus that is achieved when things work

together harmoniously” 20

“When you invest, you are buying a day when you

don’t have to work”

Edelweiss Advantage

Experience Multi-decade experience in

capital markets

Experience of different

Market cycles

Time tested & structured investment

process

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Disclaimer

Disclaimer: The presentation is dated January 12, 2018 and has been prepared by Edelweiss Asset Management Limited (Edelweiss AMC) based on internal data, publicly available information and other sources believed to be reliable. Any calculations made are approximations, meant as guidelines only, which you must confirm before relying on them. The information contained in this document is for general purposes only. The document is given in summary form and does not purport to be complete. The document does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Sector(s) / Stock(s) / Issuer(s) mentioned above are for the purpose of explanation and should not be construed as recommendation. The fund manager(s) may or may not choose to hold the stock mentioned, from time to time. Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s). The information/ data herein alone are not sufficient and should not be used for the development or implementation of an investment strategy. The same should not be construed as investment advice to any party. The statements contained herein are based on our current views and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Neither Edelweiss Asset Management Limited (Edelweiss AMC) and Edelweiss Mutual Fund (the Fund) nor any person connected with them, accepts any liability arising from the use of this document. Edelweiss Mutual Fund/AMC is not guaranteeing returns on investments made in this scheme. The recipient(s) before acting on any information herein should make his/her/their own investigation and seek appropriate professional advice and shall alone be fully responsible / liable for any decision taken on the basis of information contained herein. Past performance may not be sustained in the future.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully. 22

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