SBI LIFE INSURANCE

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IPO Price band ₹ 685-700

Index Details SBI LIFE INSURANCE (SBIL) is India’s largest private life insurer, in
Sensex 32,400.7 terms of New Business Premium generated in each fiscal year, since
Nifty 10,145.1 Fiscal 2010. It was established as a joint venture between the State
Industry Insurance Bank and BNP Paribas Cardiff in 2001. Its brand, business reputation
and customer satisfaction are critical factors in developing new
business and maintaining the leadership position. In Fiscal 2017, it
Scrip Details enjoyed a market share of Individual Rated Premium of 20.7% among
BVPS (`) 55.5 private life insurers in India and 11.2% of the entire life insurance
O/s Shares (Cr) 100 industry in India. It has also issued the highest number of individual
Price Band Rs 685- 700 life policies annually among the top five private life insurers (in
Div Yield (%) 0.2 terms of total premium in Fiscal 2017) in India since Fiscal 2014.
FVPS (`) 10.0
SBIL has a comprehensive product portfolio of 37 individual and
Shareholding Pattern
group products (of which eight products are group products),

STOCK POINTER
Shareholders (Post) %
including a range of protection and savings products to address the
Promoters 84.1
insurance needs of diverse customer segments. Its individual
Public 15.9
products include participating products, non-participating protection
Total 100.0 products, other non-participating products and unit-linked products,
which contributed 10.8%, 0.9%, 1.7% and 50.4%, respectively, of its
New Business Premium in Fiscal 2017.

SBIL has developed a multi-channel distribution network comprising

an expansive bancassurance channel, including State Bank, the
largest bancassurance partner in India, a large and productive
individual agent network comprising 95,177 agents as of July 31,
2017, as well as other distribution channels including direct sales
and sales through corporate agents, brokers, insurance marketing
firms and other intermediaries. In Fiscal 2017, it collected the
highest amount of New Business Premium generated by private life
insurers in India both through the bancassurance channel as well as
through an individual agent network

Key Financials ( Rs in Cr)

Year Premium Earned
Op Profit PAT EPS P/E RONW (%) Solvency Margin
2014 10701.9 812.0 727.7 7.3 95.9 21.6 2.2
2015 12780.0 702.6 814.9 8.1 86.4 21.9 2.2
2016 15665.4 644.6 844.1 8.4 83.3 19.2 2.1
2017 20852.4 654.3 954.6 9.5 73.7 18.6 2.0
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  Company Background
Established in 2001, SBI Life Insurance Company is a joint venture between
State Bank and BNP Paribas Cardiff( BNPPC). Following its recent merger with
certain of its associate banks and a non-affiliate bank, with effect from April 1,
2017, State Bank had 24,017 branches and 195 international offices in 36
countries and more than 420 million customers. BNPPC, an insurance
subsidiary of BNP Paribas, with operations across 36 jurisdictions
internationally, is among the leading credit life insurance businesses globally.

Further, being the market leaders, the company has been able to build a strong
heterogeneous product profile as displayed in the diagram below.

Product offerings of SBI Life Insurance

Corporate
Solution Plans

Group Loan
GROUP PLANS Protection Plan

Group Micro
Insurance Plans

Saving Plans
SBI LIFE
INSURANCE

Protection Plans

Wealth Creation
with Insurance
Individual Plans
Retirement
Plans

Child Plans

Money back/
Income Plans

Source: Company, Ventura Research

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  Key investment highlights

 Consistent track record of rapid growth

SBI Life Insurance is India’s largest private life insurer, in terms of New
Business Premium generated in each fiscal year, since Fiscal 2010. It increased
its market share of New Business Premium generated among private life
insurers in India, from 15.9% in Fiscal 2015 to 20.0% in Fiscal 2017, and market
share of New Business Premium in the entire life insurance industry, from 4.9%
in Fiscal 2015 to 5.8% in Fiscal 2017. Between Fiscal 2007 and Fiscal 2017, its
New Business Premium generated increased at a CAGR of 14.7%, faster than
the growth rate of the private life insurance industry in India during this period,
and between Fiscal 2015 and Fiscal 2017, its New Business Premium
generated increased at a CAGR of 35.4%, which is the highest among the top
five private life insurers (in terms of total premium in Fiscal 2017) in India . The
company is able to leverage its diversified product portfolio to capitalize on
favourable industry opportunities, as a result of which its Gross Written Premium
and New Business Annualized Premium Equivalent increased at a CAGR of
27.8% and 36.6%, respectively, between Fiscal 2015 and Fiscal 2017. The
compnay also issued the highest number of individual life policies annually
among private life insurers in India since Fiscal 2014. The number of policies
issued by it increased at a CAGR of 6.4% from 1,126,211 in Fiscal 2015 to
1,275,550 in Fiscal 2017 and 231,274 policies for the three months ended June
30, 2017.

 Steady rise in the market share

SBI Life Insurance has consistently increased its market share of Individual
Rated Premium among private life insurers in India from 15.6% in Fiscal 2015,
to 18.9% in Fiscal 2016 and to 20.7% in Fiscal 2017. Between Fiscal 2015 and
Fiscal 2017, its Individual Rated Premium increased at a CAGR of 37.9%, the
fastest among the top five private life insurers (in terms of total premium in
Fiscal 2017) in India. In Fiscal 2017, it enjoyed a market share of Individual
Rated Premium of 11.2% within the entire life insurance industry in India. Its
Return on Infused Capital increased from 81.5% in Fiscal 2015 to 95.5% in
Fiscal 2017 and was 125.4% for the three months ended June 30, 2017. Its
Return on Infused Capital is the highest among the top five private life insurers
(in terms of total premium in Fiscal 2017) in India.

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  Expansive multi-channel distribution with pan-India bancassurance
channel and high agent productivity

The company has over the years developed one of the largest multi-channel
distribution networks among private life insurers in India, with the largest
bancassurance channel, including with State Bank, the largest bancassurance
partner in India. It had the largest market share of Individual New Business
Premium generated by private life insurers through bancassurance channels in
Fiscal 2017. It also had a large and productive individual agent network
comprising 95,177 agents as of July 31, 2017 and its individual agent network
generated 22.9% of the Individual New Business Premium generated by private
life insurers in Fiscal 2017. The company’s other distribution channels include
direct sales and sales through corporate agents, brokers, insurance marketing
firms and other intermediaries. Such a diversified distribution network enables
the company to reduce the risk of dependence on any particular channel,
leverage economies of scale, and allows access to a wide range of customer
segments.

 Sustainable business model

 Robust financial position supported by high operating efficiencies

SBI Life Insurance has developed a strong capital base, and is adequately
capitalized.The company has never required additional capital infusion since
2008. It turned profitable within the first five years of operations, having
demonstrated consistent profitability since Fiscal 2010 it has declared dividends
every year since Fiscal 2012. It has maintained its Solvency Ratio at over 2.0
during the last five fiscal years, and had a Solvency Ratio of 2.1 as of June 30,
2017, compared to the IRDAI mandated Solvency Ratio of 1.5. Its New
Business Premium, Gross Written Premium and New Business Annualized
Premium Equivalent increased at a CAGR of 35.5%, 27.8% and 36.6%,
respectively, between Fiscal 2015 and Fiscal 2017, while the Individual Rated
Premium increased at a CAGR of 37.9% during the same period.

Based on the Embedded Value Report issued by the Independent Actuary, its
Embedded Value was ₹ 16,537.9 crore as of March 31, 2017. The Value of New
Business was ₹ 1036.8 crore in Fiscal 2017. Further, the Value of New Business
Margin was 15.4% and the Present Value of New Business Premium Margin
was 3.8%, for Fiscal 2017. In addition, the Embedded Value Operating Profit
was ₹ 2887.5 crore in Fiscal 2017, while the Operating Return on Embedded
Value was 23.0% for Fiscal 2017. In addition, the company’s profit after tax
increased at a CAGR of 8.2% from ₹ 814.8 crore in Fiscal 2015 to ₹ 954.6 crore
in Fiscal 2017.

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  Superior investment performance

SBI Life Insurance managed to achieve the second largest AUM among the top
five private life insurers (in terms of total premium) in Fiscal 2017 in India. As of
March 31, 2015, 2016 and 2017, and June 30, 2017, its AUM was ₹ 71,338.9
crore, ₹ 79,827.5 crore, ₹ 97,736.6 crore and ₹ 1,01,226.0 crore, respectively.
As of June 30, 2017, most of its unit-linked funds that are benchmarked to
independent indices have out-performed their benchmarks over the last 5 year,
3 year and 1 year horizons. The average realized returns for the traditional
portfolio in Fiscal 2017 was 9.00%.

 Diversified product portfolio

The company’s diversified product portfolio is an important contributing factor to

the growth of its business. In Fiscal 2017, participating products, non-
participating protection products, other non-participating products and unitlinked
products contributed ₹ 1092.3 crore, ₹ 96.0 crore, ₹ 171.7 crore and ₹ 5107.9
crore, respectively, representing 16.9%, 1.5%, 2.7% and 78.9%, respectively, of
the company’s Individual New Business Premium during this period

 Effective risk management

Robust risk management practices have been an important contributing factor to

the compnay’s sustainable growth. Its comprehensive risk management policy
specifies the process for identification, measurement and analysis of risk
exposures, monitors risk management strategies, and is coordinated with the
operational policies, including those relating to compliance, outsourcing, fraud
management risks and business continuity management. It was the first
insurance company in India to have complied with the recommendations of ISO
31000 2009 for enterprise risk management practices and systems and all its
processing centres are ISO 9001:2008 certified.

 Strong focus on customer service standards

The company’s strong focus on customer service is a key factor for its sustained
growth and its customer-centric approach to growing the business. Developing
the product portfolio and distribution channels is a key competitive strength. It
offers a diverse and comprehensive range of products that cover various
customer segments. Its widespread operations enable it to address customer
needs effectively and efficiently. As of July 31, 2017, it had 803 offices located
across 29 States and seven Union Territories to serve its customers. In addition,
as of July 31, 2017 the company provided customer support services through
over 42,000 of its CIFs at the branches of its various bancassurance partners. It
also provides customer support through its call centres, website and mobile
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 application, SBI Life –Easy Access. The stringent customer service standards
are evidenced by the low Mis-Selling Ratio of 0.2% in Fiscal 2017,which was the
lowest among the top five private life insurers (in terms of total premium) in
Fiscal 2017 in India. In Fiscal 2017, its Grievance Ratio was the lowest among
the top five private life insurers (in terms of total premium in Fiscal 2017) in
India, having improved from 11 grievances per 1,000 policies issued in Fiscal
2015 to 6 grievances per 1,000 policies issued in Fiscal 2017.

 Professional and Highly Experienced Board of Directors and Senior

Management Team

SBI Life Insurance has a distinguished Board comprising of industry

professionals with extensive executive leadership experience across various
industries and business domains. Its Board includes senior members of State
Bank and BNPPC who are able to provide effective guidance on operations and
risk management measures. The experience of the Board and senior
management allows the company to make strategic decisions to address
changing market conditions and evolving customer needs and implement global
best practices in its operations. The senior management team includes qualified
and experienced personnel with significant experience in all operational aspects
of the insurance business including actuary, investment, underwriting, claims
management and information technology. The senior management team has
strong operational and management expertise and an understanding of the key
opportunities and risks associated with the insurance industry in general and life
insurance in particular. A large number of the senior management personnel
have worked with the company for a significant period of time, resulting in
effective operational coordination and continuity of business strategies. The
significant experience of the management team has enabled the company to
effectively innovate, grow its business and consistently deliver strong financial
performance.

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  Future Strategies and opportunities

 Capitalize on insurance industry growth opportunities

Indicators such as life insurance penetration (premium as a percentage of

GDP), insurance density (premium per capita) and Protection gap (sum assured
to GDP) indicate that India is still underinsured and there is significant scope for
growth. India’s life insurance penetration was 2.7%, was lower than its
comparable Asian counterparts such as Thailand, Singapore and South Korea
where the life insurance penetration was 3.7%, 5.5% and 7.4% as of 2015. As of
2014, the protection gap for India at 92%, was the highest among all the
countries in Asia Pacific, suggesting that for every US$100 of insurance
protection requirement, only US$8 was actually insured. This indicates the
absence, or inadequacy, of pure protection coverage (term insurance) for a
large part of the Indian population. With a gradual growth of the economy, and
structural drivers in place (rising life expectancy, increase in share of working
population, healthcare spending, pension needs), the growth trajectory of life
insurance products is expected to be markedly stronger over the next five years.
The household savings rate (household savings as a percentage of GDP) is
also expected to increase gradually over the same period. In addition, gold and
real estate, which represent physical savings of households, are gradually losing
their appeal as investment alternatives. Recent regulatory measures to curtail
black money are also expected to boost financial savings, which is likely to
further benefit the life insurance industry.
SBI Life Insurance is well positioned to capitalize on opportunities arising out of
the growing life insurance market in India. The company is focused on
maintaining its leadership position in the private sector life insurance market by
increasing penetration and proliferation of the life insurance products in
untapped/ relatively under-penetrated markets. It plans to expand its branch
network based on a particular region’s business potential and implement
customized regional strategies to address the requirements of local customers.

 Ensure profitable growth through balanced product portfolio and

expansive distribution network

SBI Life Insurance will continue to focus on ensuring profitability of its business
by maintaining a diversified product portfolio. It continues to undertake market
assessment studies to strategically evaluate additional product offerings. As part
of its efforts to enhance the Value of New Business, Embedded Value and
improve margins, its strategy is to further optimize the product portfolio by
maintaining a balance between unit-linked, participating and non-participating
products. It also intends to expand its protection product portfolio, with a
particular emphasis on credit life protection products and gradually reduce its
focus on group products due to the inherently competitive nature of this
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 business and the high guarantee obligations related to such products. It will
further continue to periodically re-evaluate pricing considerations based on
customer feedback with a focus on profitable growth while maintaining market
share.

 Enhance brand equity and continue to focus on customer satisfaction

The insurance business is substantially dependent on reputation. In order to

maintain the leadership position across various geographies and different
customer segments, the company continues to focus on further strengthening its
brand by augmenting customer relationships, maintaining stakeholder
expectations and improving the claims management processes. It continues to
build on its existing corporate culture and strengthen its image as a socially
responsible insurance company through various corporate social responsibility
and insurance awareness initiatives with the intent to pursue sustainable,
valueenhancing long-term growth and profitability. The company’s strategy is to
maintain and enhance its brand value by ensuring best in class risk
management practices and implementing global best practices.

 Leverage technology to improve operating efficiencies and support

growth

SBI Life Insurance will continue to leverage its robust IT infrastructure to further
the strategic objective of delivering strong customer service and help ensure
business growth. It continues to improve the sales processes and operational
efficiencies through automation and digitization efforts to ensure increased
customer retention. It continuously upgrades the IT infrastructure to reduce
operating costs across the business processes including sourcing, claims
management and claims settlement. The company has also initiated measures
to upgrade its core policy management systems, and to introduce automated
claims processing and settlement mechanisms.

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  Management and Key Managerial Personnel

 Arundhati Bhattacharya, is a Nominee Director of State Bank and the

Chairman of the company. She was appointed as a Nominee Director with
effect from October 7, 2013. She has a post graduate degree in Arts from
Jadavpur University. She has also cleared the associate examination
conducted by the Indian Institute of Bankers. She joined the central board of
directors of State Bank on August 2, 2013 and currently holds the position of
chairman of State Bank. Prior to this, she was the managing director and the
chief financial officer of State Bank. She has more than 39 years of experience
in the field of banking and financial services.

 Arijit Basu, is deputed by State Bank and was appointed as the Managing
Director and Chief Executive Officer with effect from August 1, 2014. He was
re-appointed as the Managing Director and Chief Executive Officer twice with
effect from August 1, 2016 and subsequently with effect from July 9, 2017. He
holds a post graduate degree in arts from the University of Delhi and is a
certified associate of the Indian Institute of Bankers.

 Sangramjit Sarangi, is the Chief Financial Officer of the company. He is a

graduate in commerce and law from Utkal University. He is a fellow of the
Institute of Chartered Accountants of India. He has been associated with the
Company since December 30, 2009. He has 17 years of experience in
handling multiple functions in the field of life insurance and in the mutual fund
industry.

 Subhendu Kumar Bal, is the Appointed Actuary of the Company. He holds a

post graduate degree in statistics from University of Calcutta and is a fellow of
the Institute of Actuaries of India. He has been associated with the Company
since June 26, 2008. He has experience of handling multiple functions in the
field of life insurance

 Gopikrishna Shenoy, is the Chief Investment Officer of the Company. He

holds a post graduate diploma in management from T. A. Pai Management
Institute. He has been associated with the Company since January 24, 2005.
He has experience of handling multiple functions in the field of investments.

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  Swot Analysis

STRENGTH WEAKNESS

 Largest private player in the  Legal proceedings on company,

insurance space promoters and certain group
companies
 Significant brand equity and pre-
eminent Promoters  Alleged misconduct or fraudulent
activity could damage the
 Expansive multi-channel company’s reputation and
distribution prospects

 Pan-India bancassurance and

high agent productivity

 Diversified product portfolio

OPPORTUNITY THREAT

 India is still underinsured. So,  Volatility risk can affect the market
growth visibility remains intact value

 Enhance brand equity with focus
on customer satisfaction
 Leverage robust IT infrastructure
for strategic objective
 Interest rates and liquidity risk
 Occurrence of catastrophic event
 Inability to maintain solvency ratio
could bring regulatory actions

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  Issue offer and Valuation
Issue Offer
Issue Size ( Rs in Cr)
Lower Band Higher band (Rs
Category Allocation No of Shares (Rs 685) 700)
Shareholders 10% 12000000 822.0 840.0
Employees 2% 2000000 137.0 140.0
QIB 44% 53000000 3630.5 3710.0
NIB 13% 15900000 1089.2 1113.0
Retail 31% 37100000 2541.4 2597.0
Total 100% 120000000 8220.0 8400.0
Source: Company, Ventura Research

At Rs. 700 per share, which marks the higher end of the price band, the
company is valued at a PE multiple of 73.7 times its FY17 earnings.
Considering the likely increase in earnings and eventually the net worth, the
pricing appears to be attractive. The huge opportunity and penetration levels in
life insurance provide ample scope for SBI Life to grow its portfolio at a rapid
pace. We believe SBI Life has the potential to post robust numbers in the years
to come.

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 Financials and Projections
Technical Account
Particulars ( Amount in Crs) FY15 FY16 FY17
Premiums earned - Net 12780.0 15665.5 20852.5
Income from investments
Interest, dividend & rent - Gross 3326.2 4161.1 5111.5
Profit on sale/redemption of investments 5220.0 2962.6 3046.8
(Loss) on sale/redemption of investments -392.0 -1142.4 -567.9
Transfer /Gain on revaluation /Change in fair value 1786.1 -2993.0 1520.1
Accretion of discount/(amortisation of premium) (Net) 302.6 352.6 184.6
Other income 163.6 113.4 130.1
Total A 23186.5 19119.7 30277.5
Commission 603.7 714.3 783.3
Operating expenses related to Insurance Business 1167.5 1480.9 1646.5
Provision for Doubtful Debts 0.1 0.1 0.1
Bad Debts written off 0.4 0.5 0.3
Provision for Taxation 109.8 151.9 179.8
Current tax credit/(charge) 109.2 153.3 179.8
Deferred tax credit/(charge) 0.6 -1.4 0.0
Provisions (other than taxation) -11.1 4.6 -4.6
For diminution in the value of investments -11.1 4.1 -4.8
For standard assets 0.0 0.5 0.2
Service Tax on charges 129.0 170.2 226.6
Total B 1999.4 2522.3 2832.0
Benefits paid 8197.7 7958.6 9526.1
Interim & terminal bonuses paid 2.7 7.4 24.1
Change in valuation of liability in respect of life policies 12284.1 7986.9 17241.0
Gross 6065.6 6758.5 8591.7
(Amount ceded in Re-insurance) -0.9 -30.4 -3.4
Amount accepted in Re-insurance
Fund reserve 5381.2 1231.5 8277.1
Funds for discontinued policies 838.2 27.2 375.5
Total C 20484.4 15952.8 26791.2
SURPLUS/ (DEFICIT) (D) = (A) - (B) - (C) 702.7 644.6 654.4
Balance of previous year 11.9 7.3 0.2
Balance available for appropriation 714.6 652.0 654.6
APPROPRIATIONS
Transfer to Shareholders' account 707.3 651.7 654.6
Balance being funds for future appropriations 7.3 0.2 0.0
Total (D) 714.6 652.0 654.6
Details of Total Surplus :-
a) Interim & Terminal Bonuses Paid 2.7 7.4 24.1
b) Allocation of bonus to policyholders 457.3 622.2 740.8
c) Surplus shown in the revenue account 702.7 644.6 654.4
Total Surplus: [(a) + (b) + (c )] 1162.7 1274.2 1419.2

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 Statement of Profit and Loss ( shareholders Account)
Particulars ( Amount in Rs) FY15 FY16 FY17
Amounts transferred from Policyholders' account (Technical account) 7072.7 651.72 654.59
Income from investments
Interest, dividend & rent - Gross 231.62 275.69 314.36
Profit on sale/redemption of investments 34.35 36.87 84.36
(Loss) on sale/redemption of investments -1.41 -8.46 -3.04
Accretion of discount/(amortisation of premium) (Net) 11.57 13.69 5.88
Other income 7.46 7.93 8.21
Total 990.84 977.44 1064.37
Expenses other than those directly related to the insurance business 9.31 11.25 14.72
Other Expenses 3.58 17.01 12.8
For diminution in value of investments (Net) -1.05 0.41 -0.41
Contribution to Policyholders' account (Technical account) 149.68 93.67 62.68
Profit before Tax 829.33 855.11 974.57
Provision for Taxation 14.46 11.00 19.92
Current tax credit/(charge) 14.43 12.75 19.92
Deferred tax credit/(charge) 0.03 -1.75 0
Profit after Tax 814.87 844.10 954.65
EPS (Rs.) 9.5 8.4 8.1
Equity 1000 10000 10000
Face Value 10 10 10
Balance Sheet
Particulars ( Amount in Crore) FY15 FY16 FY17
Sources of funds
Shareholders Funds 4056.3 4733.1 5552.1
Share Capital 1000.0 1000.0 1000.0
Reserves and surplus 2991.0 3690.7 4464.8
Credit/[debit] fair value change account 65.4 42.4 87.3
Borrowings
Deferred tax liability 3.2 0.0 0.0
Credit/[debit] fair value change account 500.8 335.4 776.4
Policy liabilities (A)+(B)+(C) 32860.4 39634.2 48323.8
a) Provision for linked liabilities 27874.4 32098.9 38855.9
(b) Credit/[debit] fair value change account (Linked 5263.1 2270.1 3790.2
(a) Discontinued on account of non-payment of premium 1645.7 1639.4 1896.7
(b) Other discontinuance 25.5 13.3 30.2
Total linked liabilities (B)+(C) 34808.6 36021.7 44573.0
Sub - total 68172.9 75991.2 93673.2
Funds for Future Appropriation - Linked 1.5 0.2 0.0
Funds for Future Appropriation - Other 5.9 0.0 0.0
Total 72236.6 80724.6 99225.3
Application of funds
Investments 69685.0 78413.5 96547.0
Shareholders’ 3070.2 3564.9 4295.5
Policyholders’ 31504.5 38255.9 46961.8
Asset held to cover linked liabilities 34810.1 36021.9 44573.0
Loans 1.8 123.6 178.2
Fixed assets 298.4 447.3 538.5
Current assets
Advances and Other assets 1911.8 2398.8 3262.8
Sub-Total (A) 4435.5 5015.6 5692.6
Current liabilities 1676.6 2502.6 2764.1
Provisions 207.3 201.9 250.3
Sub-Total (B) 1883.9 2704.5 3014.3
Net Current Assets (C) = (A-B) 2551.6 2311.1 2678.3
Total 72236.6 80724.6 99225.3

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Disclosures and Disclaimer
Ventura Securities Limited (VSL) is a SEBI registered intermediary offering broking, depository and portfolio management services to clients. VSL is member of
BSE, NSE and MCX-SX. VSL is a depository participant of NSDL. VSL states that no disciplinary action whatsoever has been taken by SEBI against it in last
five years except administrative warning issued in connection with technical and venial lapses observed while inspection of books of accounts and records.
Ventura Commodities Limited, Ventura Guaranty Limited, Ventura Insurance Brokers Limited and Ventura Allied Services Private Limited are associates of VSL.
Research Analyst (RA) involved in the preparation of this research report and VSL disclose that neither RA nor VSL nor its associates (i) have any financial
interest in the company which is the subject matter of this research report (ii) holds ownership of one percent or more in the securities of subject company (iii)
have any material conflict of interest at the time of publication of this research report (iv) have received any compensation from the subject company in the past
twelve months (v) have managed or co-managed public offering of securities for the subject company in past twelve months (vi) have received any
compensation for investment banking merchant banking or brokerage services from the subject company in the past twelve months (vii) have received any
compensation for product or services from the subject company in the past twelve months (viii) have received any compensation or other benefits from the
subject company or third party in connection with the research report. RA involved in the preparation of this research report discloses that he / she has not
served as an officer, director or employee of the subject company. RA involved in the preparation of this research report and VSL discloses that they have not
been engaged in the market making activity for the subject company. Our sales people, dealers, traders and other professionals may provide oral or written
market commentary or trading strategies to our clients that reflect opinions that are contrary to the opinions expressed herein. We may have earlier issued or
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information barriers, such as "Chinese Walls" to control the flow of information contained in one or more areas within us, or other areas, units, groups or
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to buy, purchase or subscribe to any securities, and neither this document nor anything contained herein shall form the basis of or be relied upon in connection
with any contract or commitment whatsoever. This document does not solicit any action based on the material contained herein. It is for the general information
of the clients / prospective clients of VSL. VSL will not treat recipients as clients by virtue of their receiving this report. It does not constitute a personal
recommendation or take into account the particular investment objectives, financial situations, or needs of clients / prospective clients. Similarly, this document
does not have regard to the specific investment objectives, financial situation/circumstances and the particular needs of any specific person who may receive
this document. The securities discussed in this report may not be suitable for all investors. The appropriateness of a particular investment or strategy will
depend on an investor's individual circumstances and objectives. Persons who may receive this document should consider and independently evaluate whether
it is suitable for his/ her/their particular circumstances and, if necessary, seek professional/financial advice. And such person shall be responsible for conducting
his/her/their own investigation and analysis of the information contained or referred to in this document and of evaluating the merits and risks involved in the
securities forming the subject matter of this document. The projections and forecasts described in this report were based upon a number of estimates and
assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can
be expected that one or more of the estimates on which the projections and forecasts were based will not materialize or will vary significantly from actual results,
and such variances will likely increase over time. All projections and forecasts described in this report have been prepared solely by the authors of this report
independently of the Company. These projections and forecasts were not prepared with a view toward compliance with published guidelines or generally
accepted accounting principles. No independent accountants have expressed an opinion or any other form of assurance on these projections or forecasts. You
should not regard the inclusion of the projections and forecasts described herein as a representation or warranty by VSL, its associates, the authors of this
report or any other person that these projections or forecasts or their underlying assumptions will be achieved. For these reasons, you should only consider the
projections and forecasts described in this report after carefully evaluating all of the information in this report, including the assumptions underlying such
projections and forecasts. The price and value of the investments referred to in this document/material and the income from them may go down as well as up,
and investors may realize losses on any investments. Past performance is not a guide for future performance. Future returns are not guaranteed and a loss of
original capital may occur. Actual results may differ materially from those set forth in projections. Forward-looking statements are not predictions and may be
subject to change without notice. We do not provide tax advice to our clients, and all investors are strongly advised to consult regarding any potential
investment. VSL, the RA involved in the preparation of this research report and its associates accept no liabilities for any loss or damage of any kind arising out
of the use of this report. This report/document has been prepared by VSL, based upon information available to the public and sources, believed to be reliable.
No representation or warranty, express or implied is made that it is accurate or complete. VSL has reviewed the report and, in so far as it includes current or
historical information, it is believed to be reliable, although its accuracy and completeness cannot be guaranteed. The opinions expressed in this
document/material are subject to change without notice and have no obligation to tell you when opinions or information in this report change. This report or
recommendations or information contained herein do/does not constitute or purport to constitute investment advice in publicly accessible media and should not
be reproduced, transmitted or published by the recipient. The report is for the use and consumption of the recipient only. This publication may not be distributed
to the public used by the public media without the express written consent of VSL. This report or any portion hereof may not be printed, sold or distributed
without the written consent of VSL. This document does not constitute an offer or invitation to subscribe for or purchase or deal in any securities and neither this
document nor anything contained herein shall form the basis of any contract or commitment whatsoever. This document is strictly confidential and is being
furnished to you solely for your information, may not be distributed to the press or other media and may not be reproduced or redistributed to any other person.
The opinions and projections expressed herein are entirely those of the author and are given as part of the normal research activity of VSL and are given as of
this date and are subject to change without notice. Any opinion estimate or projection herein constitutes a view as of the date of this report and there can be no
assurance that future results or events will be consistent with any such opinions, estimate or projection. This document has not been prepared by or in
conjunction with or on behalf of or at the instigation of, or by arrangement with the company or any of its directors or any other person. Information in this
document must not be relied upon as having been authorized or approved by the company or its directors or any other person. Any opinions and projections
contained herein are entirely those of the authors. None of the company or its directors or any other person accepts any liability whatsoever for any loss arising
from any use of this document or its contents or otherwise arising in connection therewith. The information contained herein is not intended for publication or
distribution or circulation in any manner whatsoever and any unauthorized reading, dissemination, distribution or copying of this communication is prohibited
unless otherwise expressly authorized. Please ensure that you have read “Risk Disclosure Document for Capital Market and Derivatives Segments” as
prescribed by Securities and Exchange Board of India before investing in Securities Market.

Ventura Securities Limited

Corporate Office: 8th Floor, ‘B’ Wing, I Think Techno Campus, Pokhran Road no. 02, Off Eastern Express Highway, Thane (West) 400 607.

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This document is for private circulation, and must be read in conjunction with the disclaimer on the last page.