InvIT and REIT: A Mirage or Reality? - Valuation Investment Banking Restructuring Transaction Services Transaction Tax - RBSA Advisors
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InvIT and REIT:
A Mirage or Reality?
APRIL
2020
Valuation
Investment Banking
Restructuring
Transaction Services
Transaction Tax
Content
Preface 1 Page No. 04
Basic Structure of
REIT and InvIT 2 Page No. 08
Investment Thresholds –
REIT & InvIT 3 Page No. 10
Valuation of
REIT & InvIT 4 Page No. 13
Performance of
REIT & InvIT 5 Page No. 15
Opportunity of
REIT & InvIT in India 6 Page No. 23
Advantages of
REIT & InvIT 7 Page No. 26
Key factors affecting
REIT & InvIT 8 Page No. 28
REIT / InvIT – Key Tax
Considerations 9 Page No. 30
1 Preface
Preface
Amidst the liquidity gloom gripping the Indian Real Estate & Infra industry came the legislation of REIT/InvIT guidelines
back in 2014-2015
This was clearly a moment to rejoice albeit with some caution as the legislature & the regulators attempted to provide a
conducive environment for this novel instrument to see fruition
Infrastructure Investment Trusts (“InvIT”) and Real Estate Investment Trust (“REIT”)
These are investment vehicles that pool money from investors and invest in infrastructure assets and real estate
assets, respectively, directly or through a special-purpose vehicle (SPV)
From a risk/ reward perspective, investors in REIT/ InvITs can aim for relatively stable return with limited risk and/ or
when the interest rate/ yield expectation decline.
These instruments primarily distribute income from rentals, tolls and property/infrastructure assets as dividend, and
the net asset value of the units go up when the underlying property / infrastructure appreciates in value
India has been a late entrant into REIT. REIT were first introduced in the USA in the year 1960. However as per an
estimate, about 294 mn sq ft of office space stock would be eligible for REIT. This would translate to potential
investment of about INR 2,50,000 Cr (USD 35 Bn)
Sector Mkt Cap (USD Mn)
14,00,000
12,00,000
10,00,000
8,00,000
6,00,000
4,00,000
2,00,000
0
USA Australia Canada Singapore Japan France UK India
Year of
Introduction 1960 1985 1994 1999 2000 2003 2007 2014
Source: EPRA Global REIT Survey 2019
In India about 294 mn sq ft of office space stock would be eligible for REIT translating to potential investment of
about INR 2,50,000 Cr (USD 35 Bn)
InvIT and REIT: A Mirage or Reality? 05
Preface
Growth of InvITs in India at a Glance
InvITs have seen a surge in interest with investors like CPPIB, KKR, Brookfield looking to deploy large sums of capital in
Indian infrastructure
InvIT name Investor Assets type Amount raised/committed (USD Mn)
IRB InvIT India Grid Trust Indinfravit Trust Indinfravit Trust IndiGrid Renewable InvIT
IPO (IndiGrid) CPPIB, Allianz, OMERS KKR, GIC Piramal, CPPIB
Road IPO others Road Transmission Renewable
Transmission Road
India Infratructure Trust
Brookfield
762 650 650
350 Gas pipeline
121 295 1,830
2017 2018 2019
Source: Sebi, media reports
InvIT and REIT: A Mirage or Reality? 06
Preface
While investors' interest in InvIT and REIT investments have increased in the recent past, India still has a long way to go
considering its infrastructure/ real estate funding requirement and growth opportunities
India has a long way to go:
REIT
80
72
70
60
50
10 X
IN INR Cr
40
30
20
7
10
0
Jan-19 Dec-19
Investment by fund houses in REITs jumped to INR 72.5 crore in December 2019 from a mere INR 7 crore in January 2019,
signifying an increase of 10 x in the investment
InvIT
1000 948
900
800
700
611
in INR Cr
600
500
400
300
200
100
0
Jan-19 Dec-19
Investment by fund houses in InvITs increased by 55%, to INR 948 crore from INR 611 crore, during January 2019 to
December 2019
Source: Media Reports InvIT and REIT: A Mirage or Reality? 07
2 Basic Structure of REIT and InvIT
Basic Structure of InvIT and REIT
Sponsor Unitholders
Distributions Distributions
Investment
Management Fees Trustee Fees
Investment Trustee
Manager
Trust Deed
REIT/InvIT
Investment
Management
Agreement
Income
SPV Holdco Asset
Valuer
Asset SPV
Asset
Steps
A sponsor sets up the REIT/InvIT, and money is pooled from the investors/unitholders
The sponsor appoints a trustee, whose role is to oversee the functions of the REIT/InvIT
The Sponsor and trustee appoints an investment manager, whose function is to identify and recommend investment
opportunities and to manage investments
A REIT or InvIT can invest directly by acquiring real estate/infrastructure assets or through an SPV
InvIT and REIT: A Mirage or Reality? 09
3 Investment Thresholds – REIT & InvIT
INVIT and REIT Regulation in India
Prevailing Regulation and Eligibility Criteria - REIT
Real Estate Investment Minimum value of a single lot
SEBI Governed Regulation
Trusts Regulations, 2014 should be INR 50,000
Eligibility Criteria
Sponsor Manager Trustee
Each sponsor shall hold or Investment Manager shall have a networth Registered with SEBI, and not
propose to hold not less than of not less than INR 100 mn if the manager an associate of the sponsor(s)
5% of the number of units of is body corporate or a company or net or manager
the REIT on post initial offer tangible assets value of not less than INR
basis 100 mn in case the manager is an LLP
The Sponsors on collective Manager or its associates to have
basis shall have networth of minimum experience of 5 years in fund
not less than INR 1,000 Mn management or advisory or property
provided each sponsor’s net management. A minimum of 2 key
worth is not less than INR 200 personnel with minimum 5 years of
million experience in fund management or
advisory or property management
Sponsor or its associate shall
have not less than 5 years of The manager shall has not less than half of
experience in development / its directors/governing board as
fund management in Real independent and such independent
estate sector should not be directors of any other REIT
Not less than 80% of the value of REIT asset shall be invested in completed and revenue
generating properties
Investment Not more than 20% of the value of the REIT asset shall be invested in under-construction
Criteria property / debt instrument of real estate company / shares of listed company deriving
operating income not less than 75% from real estate activities / Govt securities / money
market instrument
Periodic distribution: not less than 90% of net distributable cash flows of the REIT shall be
distributed to unit holder
Distribution Asset Sale: not less than 90% of sale proceed to be distributed to unit holder unless REIT
Condition proposes to reinvest sale proceeds if any into another property
Periodic distribution shall be declared and made once every 6 months in every financial year
and shall be made not later than 15 days from date of such delcaration
InvIT and REIT: A Mirage or Reality? 11INVIT and REIT Regulation in India
Prevailing Regulation and Eligibility Criteria - InvIT
Infrastructure Investments Minimum value of a single lot
SEBI Governed Regulation
Trust Regulations, 2014 should be INR 100,000
Eligibility Criteria
Sponsor Manager Trustee
Each sponsor shall have Investment manager shall have a networth Registered with SEBI, and not
networth of not less than INR not less than INR 100 mn if investment an associate of the sponsor(s)
1,000 mn if it is a body manager is a body corporate or a or manager
corporate or company or net company or net tangible asset value not
tangible asset of value not less than INR 100 million in case
investment manager is an LLP
less than 1,000 mn in case it is
a limited liability partnership. Investment manager or its associates to
have minimum experience of 5 years in
Minimum experience of 5 fund management or advisory or property
years in development of management. A minimum of 2 key
infrastructure / fund personnel with minimum 5 years of
management in infrastructure experience in fund management or
sector advisory or property management
The manager shall have not less than half
of its directors /governing board as
independent and no directors/members
of governing board of another InvIT
Not less than 80% of the value of InvIT asset shall be invested in completed and revenue
generating infrastructure project
Investment
Not more than 20%of the value of the InvIT Assets shall be invested in other eligible
Criteria investments including, investments in under-construction projects, which shall not exceed 10%
of the value of InvIT Assets/ debt of companies in infrastructure sector/ equity share listed on
stock exchange having not less than 80% of their operating income from infrastructure sector/
government securities / money market instrument
Periodic distribution: not less than 90% of net distributable cash flows of the InvIT shall be
distributed to unit holder
Distribution Asset Sale: not less than 90% of sale proceed to be distributed to unit holder unless InvIT
Condition proposes to reinvest sale proceeds if any into another infrastructure asset
Periodic distribution shall be declared and made once every 6 months in every financial year in
case of publicly listed InvIT and shall be made not later than 15 days from date of such declaration
InvIT and REIT: A Mirage or Reality? 124 Valuation of REIT & InvIT
Valuation of REIT & InvIT
Adjusted NAV, is usually adopted for valuation of REIT / InvIT units
Adjusted NAV is the market value of all the underlying assets,
Valuation Methods for including cash and indirect property assets, net of all liabilities.
Adjusted NAV
REIT & InvIT
The underlying assets can be valued using income approach or
market approach
Approaches used for valuation of underlying assets of trusts
Since 80% investments of Investment trust is into
Estimates value based on
Income operating assets. Discounted cashflow method under
the present value of future
Approach income approach is widely used for valuation of
earnings or cash flow
underlying operating assets of the trust
Measuring the relative value Relative multiples like Price/SF/Unit, implied cap rate
Market
of the underlying assets and EV/EBITDA etc. can be used to estimate the value
Approach
of the trust based on of underlying assets of the investment trust
comparable companies
InvIT and REIT: A Mirage or Reality? 145 Performance of REIT & InvIT
Performance of Invit and
REIT listed in India
IRB InvIT - Performance Since its listing
120 140
Adjusted NAV per unit as declared
100 120
100
80
Price per unit
80
60
60
40
40
20 20
0 -
Adjusted NAV Price per unit Source: RBSA Analysis
Particulars (INR in Cr) Dec-18 Mar-19 Jun-19 Sep-19 Dec-19
Revenue 311 326 323 301 330
EBITDA 253 261 254 243 272
NDCF at Trust level 188 208 176 150 162
Source: RBSA Analysis, Annual Reports and Investor Presentation
Distribution / Unit
3 4
3 3
3
Dec-18 Mar-19 Jun-19 Sep-19 Dec-19
Source: RBSA Analysis, Annual Reports and Investor Presentation
The IRB Infrastructure Investment Trust (IRB InvIT), sponsored by IRB Infrastructure Developers Limited (IRB), was
created in 2017 to acquire the operating NHAI toll road assets across five states in western and south India
IRB InvIT comprises of seven operational road projects having length of 4,055 lane kms with gross toll collection of ~
Rs. 1,200 cr for FY 2018-19.
When it was first launched, the estimated Internal Rate of Return (IRR), a from all projects, was about 13-14%. However,
that has not been the case. Toll collections have disappointed on two key roads. A sand-mining ban closer to the
Pathankot-Amritsar highway and to Jaipur-Deoli saw toll collections shrink
Note: NDCF at trust level = Distribution from SPVs to Trusts less debt at trust (if any) less other Trust expenses (if any)
less Trust management fees.
InvIT and REIT: A Mirage or Reality? 16Performance of Invit and
REIT listed in India
INDIGRID InvIT - Performance Since its listing
120 120
Adjusted NAV per unit as declared
100 100
Price per unit
80 80
60 60
40 40
Source: RBSA Analysis
Adjusted NAV Price per unit
Particulars (INR in Cr) Dec-18 Mar-19 Jun-19 Sep-19 Dec-19
Revenue 160 171 206 373 340
EBITDA 146 151 189 348 314
NDCF at Trust level 85 85 148 170 154
Source: RBSA Analysis, Annual Reports and Investor Presentation
Distribution / Unit
3 3 3 3 3
Dec-18 Mar-19 Jun-19 Sep-19 Dec-19
Source: RBSA Analysis, Annual Reports and Investor Presentation
The India Grid Trust (IndiGrid), sponsored by Sterlite Power Grid Ventures Limited (SGL), was created in 2016 to acquire
the operating power transmission assets
IndiGrid has acquired five projects with a total network of 13 power transmission lines of 3,362 kms and 3 substations
having 6,000 MVA of transformation capacity across nine states
Additionally, IndiGrid acquired Patran Transmission Company Limited from Techno Electric & Engineering Company Ltd
on August 31, 2018 with one substation having 1,000 MVA of transmission capacity in Punjab
Each of these 6 Portfolio Assets have been completed and are revenue-generating for more than a year
InvIT and REIT: A Mirage or Reality? 17Performance of Invit and
REIT listed in India
EMBASSY REIT - Performance Since its listing
500 500
Adjusted NAV per unit as declared
450 450
Price per unit
400 400
350 350
300 300
250 250
Adjusted NAV per unit Price per unit Source: RBSA Analysis
Particulars (INR in Cr) Jun-19 Sep-19 Dec-19
Revenue 535 521 546
EBITDA 437 419 446
NDCF at Trust level 418 466 471
Source: RBSA Analysis, Annual Reports and Investor Presentation
Distribution / Unit
6 6
5
Jun-19 Sep-19 Dec-19
Source: RBSA Analysis, Annual Reports and Investor Presentation
Embassy Office Parks portfolio comprises of 7 Class A office parks and 4 city-center office buildings totaling 33 msf
(million square feet) of total area
They provide strategic amenities, including 2 completed and 2 under-construction hotels totaling 1,096 keys, food
courts, childcare and employee transportation facilities
Their Portfolio is strategically located in India’s four key office markets of Bengaluru, Pune, Mumbai and Noida
Their Occupancy is at 94.7% with weighted average lease expiry of ~ 7.2 years. They have 165 tenants comprising a mix
of blue-chip multinational and Indian corporates
Nearly, 53% of Gross Rentals are derived from tenants in technology sector, with the remainder coming from various
industries including financial services, healthcare and telecommunications
InvIT and REIT: A Mirage or Reality? 18Performance of Invit and
REIT listed in India
InvIT & REIT vis-à-vis the benchmark NIFTY 50 Index during FY 2020
160.0
140.0
120.0
100.0
80.0
60.0
40.0
20.0 Rebased to 100
01-May-19
01-Aug-19
01-Nov-19
01-Dec-19
01-Oct-19
01-Mar-19
01-Sep-19
01-Feb-19
01-Jun-19
01-Jan-19
01-Apr-19
01-Jul-19
Nifty 50 Embassy REIT Indi Grid INVIT IRB INVIT
During FY 2020, the benchmark index NIFTY had a fall of 26.3% while Embassy REIT has outperformed with an
annualized return of 23.2 % and INDIGRID InvIT has outperformed with an annualized return of 21.0%. However only IRB
InvIT has underperformed and it have provided a negative annualized return of 51.9%
REIT and InvITs are inherently less volatile as compared to equity securities. They may also provide a higher
return compared to debt securities.
Source: RBSA Analysis InvIT and REIT: A Mirage or Reality? 19Performance of InvIT
Relative performance of INDIGRID InvIT
INDIGRID InvIT's vs NIFTY INFRA INDEX
140
120 Performance Analysis
100
Units of INDIGRID InvIT have
80 outperformed the benchmark NIFTY
INFRA since its listing in June 2017
60
40 INDIGRID InvIT has distributed INR 30.6
20 per unit since its listing
0
Over 6 June 2017 to 31 March 2020,
INDIGRID InvIT units have provided an
06-Feb-20
06-Oct-19
06-Oct-18
06-Jun-19
06-Jun-18
06-Oct-17
06-Jun-17
06-Dec-19
06-Dec-18
06-Dec-17
06-Feb-19
06-Feb-18
06-Aug-19
06-Aug-18
06-Aug-17
06-Apr-19
06-Apr-18
annualised return of ~7.7% vis-à-vis
negative annualised return of ~10.5% by
Nifty Infra Index
NIFTY INFRA INDIGRID
Rebased to 100
Relative performance of IRB InvIT
IRB InvIT vs NIFTY INFRA INDEX
140
Performance Analysis
120
100
Units of IRB InvIT have underperformed
the benchmark NIFTY INFRA since its
80 listing in May 2017
60
IRB InvIT has distributed INR 31.0 per unit
40
since its listing
20
0
Over 18 May 2017 to 31 March 2020, IRB
InvIT units have provided an negative
06-Feb-20
06-Oct-19
06-Oct-18
06-Jun-19
06-Jun-18
06-Oct-17
annualised return of ~23.3% vis-à-vis
06-Jun-17
06-Dec-19
06-Dec-18
06-Dec-17
06-Feb-19
06-Feb-18
06-Aug-19
06-Aug-18
06-Aug-17
06-Apr-19
06-Apr-18
negative annualised return of ~10.5% by
Nifty Infra Index
NIFTY INFRA IRB InvIT
Rebased to 100
Source: RBSA Analysis InvIT and REIT: A Mirage or Reality? 20Performance of REIT
Relative performance of EMBASSY REIT
Embassy REIT Vs Nifty Realty Index
180
150
120
90
60
30
01-May-19
01-Aug-19
01-Nov-19
01-Dec-19
01-Oct-19
01-Mar-19
01-Sep-19
01-Feb-19
01-Jun-19
01-Jan-19
01-Apr-19
01-Jul-19
EMBASSY REIT NIFTY REALTY
Performance Analysis
Units of Embassy REIT have outperformed the benchmark NIFTY Realty Index since its listing in April 2019
EMBASSY REIT has distributed INR 17.5 per unit since its listing
Over 1 April 2019 to 31 March 2020, Embassy REIT units have provided an annualised return of ~23.2% vis-à-vis negative
annualised return of ~34.0% by Nifty Realty Index
This performance is despite the headwind in form of change in dividend tax on the REIT instrument in the Union Budget
2020
Basing this we can conclude that the REIT instrument has relatively lower risk as compared to the benchmark indices and
has provided regular distribution which makes it more attractive for investors seeking regular income with limited risk
Source: RBSA Analysis InvIT and REIT: A Mirage or Reality? 21Upcoming REIT & InvIT Trust
Amount expected to be
REIT Underlying Assets
Raised in INR Cr
Mindspace Business Integrated business parks with
Parks REIT 1,000 leasable area of about 30 mn sqft
Mall in Banglore and Commercial
Prestige Estate undisclosed realestate in Chennai
Various real estate assets consisting
Brookfield 7,500 leasable area of about 20 mn sqft
Amount expected to be
InvIT Underlying Assets
Raised in INR Cr
Tower Infra Trust 25,214 Tower portfolio of Reliance Jio
Power Grid InvIT 10,500 Transmission assets
NHAI InvIT 15,050 Operating toll road assets
Canadian Pension
2,400 Operating toll road assets
fund CDPQ
Source: SEBI and Media Reports InvIT and REIT: A Mirage or Reality? 226 Opportunity of REIT & InvIT in India
Opportunity of REIT & InvIT in India
From an business perspective, the advantage of an InvIT / REIT structure is there for both the demand and supply side.
The demand side refers to the businesses looking to raise capital by listing their assets. The supply side refers to the
supplier of money, i.e. the investor looking to invest in attractive assets
Investment required for Infrastructure
As per the Economic Survey, to prevent 'lack of infrastructure' becoming a 'binding constraint' on the growth of Indian
economy that aspires to become a USD 5 trillion by 2024-25, the country needs to spend about USD 1.4 trillion on
infrastructure
The Government of India is taking every possible initiative to boost the infrastructure sector.
Investment required in Infrastructure
1,400 USD Bn
63
India Infrastructure spend in next 5 years Allocation for Infrastructure in Union
(Economic Survey 2019-2020) Budget 2019-2020
Source: SEBI and Media Reports InvIT and REIT: A Mirage or Reality? 24Opportunity of REIT & InvIT in India
High Debt in Infrastructure Company
The debt-laden private sector Indian infrastructure companies are not in a position to undertake new projects. Most
private players in the infrastructure space remain highly leveraged
Debt Situation in Real-estate Sector
Over the past few years, the Indian residential real estate sector has been experiencing a slowdown in sales and
collection levels, which along with the implementation of RERA and increasing buyer preference for completed inventory
has reduced the availability of customer advances to fund real estate projects during the construction stage
Consequently, real estate developers have been increasingly relying on debt to fund project execution
The overall debt exposure to the real estate sector has gone up 38 per cent to Rs 4.4 lakh crore at the end of June 2019
from March 2017, as per Reserve Bank of India data
FY 2019
30
20
10
Times
NM
-
Net Debt / EBITDA Net Debt / Equity
(10)
(20)
IRB Infrastructure Developers Limited Dilip Buildcon Limited
Ashoka Buildcon Limited GMR Infrastructure Limited
GVK Power & Infrastructure Limited Sadbhav Infrastructure Project Limited
Prestige Estates Projects Limited DLF Limited
NM – SADBHAV Infrastructure Project Limited Net debt / equity is not meaningful due to negative networth
Real estate sector account for around 20 per cent of the total of 2,542 cases filed with the Insolvency and
Bankruptcy Board till date.
Source: RBSA Analysis, Annual Report InvIT and REIT: A Mirage or Reality? 257 Advantages of REIT & InvIT
Advantages of REIT & InvIT
Portfolio diversification helps to reduce the volatility/ risk of change in the portfolio value
over a period of time.
Portfolio
For example, the 2016 Wilshire Associates study commissioned by NAREIT found that the
Diversification
optimal portfolio allocates up to 17 percent of assets to REITs. The study showed that a
diversified portfolio that included REITs had nine less basis points of risk (and generated
33 basis points of additional return) than a similar portfolio that did not include REITs
Publicly traded ReIT’s / InvIT’s offer investor the ability to add real estate / infrastructure
Liquidity investment return to their portfolio without incurring the liquidity risk that accompanies
direct real estate / infra project investment
The InvIT / REIT’s are meant for investors looking for regular income since they make
regular distribution
Distributions
It makes an attractive investment option when the yield offered by the REIT / InvIT is
higher than Corporate Bonds
REITs income primarily include lease rentals from tenants, the terms of which tend to
protect the REITs’ margins from the effects of inflation
With respect to REIT, the landlord does not pay operational costs such as maintenance /
Hedge against
Inflation
taxes; instead, tenants pay the costs directly. Apartment landlords typically have one-year
leases, and generally can increase their rents (also called marking-to-market) to keep
pace with inflating costs
The result is that the REITs generates inflation-adjusted earnings
The InvIT / REIT industry is highly transparent in part because, as publicly traded firm faces
a high degree of scrutiny and have stringent regulatory disclosures
Transparent Corporate
Structure Secondly, INVIT / REITs are required to distribute a major portion of their free cash flows.
REITs also pay their distributions in cash and, therefore, operate with limited retained
earnings
InvIT and REIT: A Mirage or Reality? 278 Key factors affecting REIT & InvIT
Key Factors affecting
InvIT and REIT
Key Factors
Lower rental yields Political Risk/Court Intervention Lack of liquidity
Rental income generated is Due to relatively low liquidity
low compared to other for InvIT / REIT units on Indian
countries, including emerging stock exchanges, the bid-ask
markets Risk of over valuation at the spread is relatively high and
time of initial public offer thus investors faces a risk of
order execution
Lack of competent Cash flow deviation
management
Competent Management is Longer the project, greater
key to the success of the the risk of deviation in
InvIT/ REIT and increasing projections compared to the
unitholders' value/ returns actual cash flow
InvIT and REIT: A Mirage or Reality? 299 REIT / InvIT – Key Tax Considerations
REIT/InvIT - Key Tax
Considerations
Unitholders Taxes Earnings***
Sponsor Unitholders
Dividend Exempt**/Applicable Rates
Interest Applicable Rates
Distributions Distributions
Rental Income Applicable Rates
Others* Exempt
As A
sesse
REIT/InvIT Taxes Earnings Withholding (%) ***
tt
Exempt
Dividend Exempt 0**/10
REIT/InvIT
Interest Exempt 5/10
Rental Income Exempt 10/MMR
Income Others* MMR** Not Applicable
SPV Holdco
Asset
SPV
Asset
Key Tax Aspects
* Capital Gains, Capital Gain, including gains from sale of Units (except for the transaction of transitioning of SPV shares
to Trust), however, will be taxable as per rates given under S. 111A/112/112A of ITA
** Dividends are tax exempt for Unit Holders, if SPV has not availed Concessional Rate (22%) regime
*** All Non-residents are taxable either at Domestic Rates as given or Treaty Benefits (if applicable), whichever is
beneficial
**** MMR signifies Maximum Marginal Rate under Tax Law
InvIT and REIT: A Mirage or Reality? 31Services
Investment Banking
Valuation (Category 1 Merchant Bank)
• Business & Equity Valuation • M&A Advisory:
• Valuation of Brands, Goodwill, Other Intangible Assets & • Sell Side & Buy Side
Intellectual Property • Domestic & Cross Border
• Valuation of Financial Securities, Instruments & Derivatives • Partner Search, Joint Ventures & Strategic Alliances
• Valuation of Industrial Assets and Plant & Machinery • Government Disinvestment & Privatization
• Valuation of Real Estate • Fund Raising – Equity, Mezzanine, Structured Finance & Debt
• Valuation of Infrastructure Assets & Specialized Assets (Corporate & Project Finance)
• Purchase Price Allocations (PPA) for Mergers & Acquisition (M&A) • Distressed Investment Banking – One-Time Settlement, Priority
• Impairment Studies for Tangible Assets and Interim Funding, Rescue Financing, and Buyouts
• Impairment Studies for Cash Generating Units, Intangible • Capital Market Advisory
Assets & Goodwill
• Mines, Mineral Advisory and Valuation
• Valuation of ESOPs and Sweat Equity
Transaction Services
• Valuation for Tax, Transfer Pricing and Company Law Matters • Buy side due diligence and closing due diligence
• Fairness Opinions • Vendor due diligence and vendor assistance
• Valuation under Insolvency & Bankruptcy Code (IBC) • Setting up and managing dataroom
• Determination of Swap Ratio under Mergers and Demergers • Advice on sale and purchase agreements (SPA) and business
• Valuation of Inventory / Stocks and Debtors / Receivables transfer agreements (BTA)
• Litigation and Dispute Valuation Services • Assistance in deal negotiation
Risk Consulting Transaction Tax
Strategic & Risk Advisory Services Deal Tax Advisory (Strategic, IBC, PE/VC)
• Techno Economic Feasibility Studies • Tax Due-Diligence
• Economic Viability & Financial Appraisal • Tax Structuring
• Business Plan Review • Deal Negotiation Review
Technical Support Services • Transaction Documentation Review
• Lender’s & Investor’s /Independent Engineer Services • Post-Deal Integration
• Technical Due Diligence, Technical Opinions Corporate Restructuring
• Chartered Engineers Opinion & Certification • Group Restructuring
• Project Cost Investigation • Financial/Capital Restructuring
• Project Appraisal and Monitoring Succession Planning
Agency for Specialized Monitoring (ASM) Holistic Implementation Support
• Term Loan Monitoring • Merger/Amalgamation
• Working Capital Monitoring • Demerger/Spin-off
• Cash Flow Monitoring • Capital Reduction
Financial & Treasury Risk Advisory • Share Buyback
• Assessment of Credit Risk, Market Risk & Interest Rate Risk • Business Transfers
• Asset Quality Review & Stress Testing • Liquidation/Wind-up
• Assessment of Expected Credit Loss
• Assessment of Asset Liability Management & Liquidity Risk Restructuring
Dispute & Litigation Support • Insolvency Professional Services
• Assistance in the preparation of Resolution Plan
• Valuation Services • Independent Bid Evaluation of Restructuring Proposals
• Damages & Loss of Profit Analysis • Process Advisor
• Independent Expert testimony • Advisor to Committee of Creditors / Creditor Advisory
• Anti-trust & Competition Advisory • CRO services - Chief Restructuring Officer
• Post-Acquisition Disputes, Joint Venture & Shareholder Disputes • Priority and Interim Funding
• Civil & Construction Disputes, Real Estate Disputes • Turnaround Advisory and Business Transformation
• Intellectual Property Rights Dispute • Interim Management Services
InvIT and REIT: A Mirage or Reality? 32Contact Us
Management
Rajeev R. Shah Manish Kaneria Mitali Shah Ravishu Shah
Managing Director & CEO Managing Director & COO Managing Director Managing Director
+91 79 4050 6070 +91 79 4050 6090 +91 79 4050 6050 Financial Advisory Services
rajeev@rbsa.in manish@rbsa.in mitali@rbsa.in +91 22 6130 6093
ravishu.shah@rbsa.in
Ravi Mehta Chetan Khandhadia Ajay Malik
Managing Director & Head Managing Director & Head Managing Director & Head
Transaction Tax Transaction Services Investment Banking
+91 22 6130 6052 +91 22 6130 6095 +91 22 6130 6015
ravi.mehta@rbsa.in chetan.khandhadia@rbsa.in ajay.malik@rbsa.in
Project Leader Research Analysts
Nachiket Kadu Vikas Biyani Bharat Somaya
+91 22 6130 6062 +91 40485 46254 +91 22 6130 6004
nachiket.kadu@rbsa.in vikas.biyani@rbsa.in bharat.somaiya@rbsa-advisors.com
India Offices Global Offices
Mumbai Delhi Kolkata Dubai
1121, Building No. 11, 2nd Floor, 2nd Floor, IAPL House, 9th Floor, KAHM Tower, 2001-01, Level 20, 48 Burj Gate Tower,
Solitaire Corporate Park, Chakala, 23 South Patel Nagar, 13, Nellie Sengupta Sarani, Downtown, Sheikh Zayed Road,
Andheri Kurla Road, Andheri (E), New Delhi - 110 008 Kolkata - 700 087 PO Box 29734, Dubai, UAE
Mumbai - 400 093 M: +91 99585 62211 Tel: +91 33 460 34731 M: +971 52 382 2367
Tel: +91 22 6130 6000 Tel: +91 11 2580 2300 +971 52 617 3699
Tel: +971 4518 2608
Email: dubai@rbsa.in
Ahmedabad Bengaluru Hyderabad Singapore
912, Venus Atlantis Corporate Park, 104, 1st Floor, Sufiya Elite, 202, 2nd Floor, Shangrila Plaza, 105 Cecil Street,
Anand Nagar Road, #18, Cunningham Road, Road No. 2, Opposite KBR Park, # 22-00 The Octagon,
Prahladnagar, Near Sigma Mall, Banjara Hills, Singapore - 069 534
Ahmedabad - 380 015 Bangalore - 560 052 Hyderabad - 500 034 M: +65 8589 4891
Tel: +91 79 4050 6000 M: +91 97435 50600 M: +91 90526 60300 Email: singapore@rbsa.in
Tel: +91 80 4112 8593 Tel: +91 40 4854 6254
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