Edelweiss Large Cap Structure Product

May’19

Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the Applicable Laws.
 The offerings
ALPHA GENERATION (Option 1)
125% Upside1 of Basket returns with 1x loss on
downside

CAPITAL PROTECTION2 (Option 2)

100% Upside1 of the basket returns with Principal Protection on
downside
 Performance linked to a basket of blue chip stocks

 Underlying will be an Equi-Weighted basket of 6 stocks at initiation

 Structured Solutions add advantage of Principal Protection or alpha over traditional modes of investing depending on the
option chosen by the investor
1. Realized return on investment may differ depending on the investment timing, due to the difference in purchase value and face value of the security on the date of investment. Principal is not protected for
the early redemption tenure in case the underlying performance is negative.
2. Principal protection is available to the extent of the face value of the instrument, and further subject to the credit risk of company issuing such Market Linked Debentures.Strictly Private and Confidential-
Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the Applicable Laws.
 Constituent Stocks

KOTAK MARUTI
HDFC BANK RIL BRITANNIA TCS
BANK SUZUKI

FINANCIAL FINANCIAL CONSUMER AUTOMOBILE IT

SERVICES SERVICES ENERGY
GOODS

Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the Applicable Laws.
 Why These 6 Stocks?
Contribution to the GDP & the Market

~20% 32%
Contribution Market Cap
of basket of basket
stocks in stocks as a
India’s Market share of
Cap to GDP NIFTY 50
ratio Market Cap

In our opinion they are poised to be Preferred Beneficiary of the India Growth Story!
Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the Applicable Laws.
Source : Bloomberg as on 12th April’19
 Why These 6 Stocks?
Apple of FIIs’ Eyes

33% 26%
Of Total FII Average FII
Holdings in Holding in
NIFTY50 is the basket
in these 6 stocks
stocks

Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the Applicable Laws.
Source : Bloomberg as on 12th April’19
 Back-testing Results5
Historical returns for 3 Years
180%
160%
140%
120%
100%
80%
60%
40%
20%
0%
2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008
NIFTY 50 Basket returns

25.4% CAGR5
Back-tested Average rolling Return of the basket in 3 Years; Compared to 11.1% CAGR for NIFTY 50
5. Returns are based on back-tested data of monthly closing price from January 2005 to March 2019 . Back-testing / past performance is not an indication of future performance.
Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the Applicable Laws.
Source : Bloomberg as on 12th April’19
 New High Every Year
2000
1800
1600
1400
1200
1000
800
600
400
200
0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
HDFC Bank Kotak Bank Britannia RIL TCS Maruti

The Basket would have achieved a new 52 week high7 every year with average increase of 26% in last 10 years.

7. All 52 week Highs have been indexed to 100 in 2009

8. Backtesting done on daily closing price data from 18 Feb 2009 to 18 March 2019. Backtesting / past performance is not an indication of future performance.
Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the Applicable Laws.
Source : Bloomberg as on 12th April’19
 Return Scenarios (illustration)3: Option 1 - (Alpha Generation)
Scenario 1 – Basket rises Scenario 2 – Basket falls

Basket Product Basket Product

Basket Level Basket Level
Returns Returns3 Returns Returns3
Assumed
Entry
2,000 100% 125% 1,000 Level 4 0% 0%

1x Basket Downside2
1,800 80% 100% 800 -20% -20%

125% Basket Upside1

1,600 60% 75% 600 -40% -40%

1,400 40% 50% 400 -60% -60%

1,200 20% 25% 200 -80% -80%

Assumed
Entry
1,000 Level 4 0% 0% 0 -100% -100%
3. Returns showcased are for illustrative purposes only. The returns are pre-tax and post-cost (Excluding set-up fees).
4. This is for illustration purpose only. Entry level will be the average of all the Stocks Level on Primary Trade Date and next two months FnO Expiries. The above illustration is for the early
redemption tenure.
5. Face value protection for the total tenure. Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the
Applicable Laws. 3
 Return Scenarios (illustration)3: Option 2 - Capital Protection
Scenario 1 – Basket rises Scenario 2 – Basket falls

Basket Product Basket Product

Basket Level Basket Level
Returns Returns3 Returns Returns3
Assumed
Entry
2,000 100% 100% 1,000 Level 4 0% 0%

1,800 80% 80% 800 -20% 0%

Principal Protected2
100% Basket Upside1
1,600 60% 60% 600 -40% 0%

1,400 40% 40% 400 -60% 0%

1,200 20% 20% 200 -80% 0%

Assumed
Entry
1,000 Level 4 0% 0% 0 -100% 0%

3Returns showcased are for illustrative purposes only. The returns are pre-tax and post-cost (Excluding set-up fees).
4This is for illustration purpose only. Entry level will be the average of all the Stocks Level on Primary Trade Date and next two months FnO Expiries
Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the Applicable Laws. 3
 Alpha Generating Structure Option 1
Details Option 1
CREDIT RATING Minimum of PP-MLD-AA
UNDERLYING Equi-Weighted basket of HDFC Bank, Kotak Bank, RIL, MARUTI, BRITANNIA AND TCS
SECURED Yes, with a minimum 1x charge created with Debenture Trustee
LISTING Listed on leading stock exchange

MINIMUM INVESTMENT AMOUNT 26 L Per Client

PRINCIPAL PROTECTION Principal is not protected for the EARLY REDEMPTION TENURE
EARLY REDEMPTION TENURE 42 Months
PARTICIPATION TENURE 36 Months
TOTAL TENURE 120 Months (Face value protection at the end of the total tenure)
Average of Closing Levels of all Stocks on Primary Issuance Date and next two months
ENTRY LEVEL
Expiries
Average of Closing Levels of all Stocks on expiries of 34th to 36th Month from the primary
EXIT LEVEL
issuance date
UNDERLYING PERFORMANCE EXIT LEVEL/ENTRY LEVEL - 1

UPSIDE PARTICIPATION 125%1 Upside of Basket returns

RETURN PROFILE OF INVESTMENT
If Underlying Performance is negative: (1+Underlying Performance)*Face Value
(FOR THE EARLY REDEMPTION
If Underlying Performance is Positive : (1+PR*Underlying Performance)*Face Value
TENURE)

Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the Applicable Laws. Investor should carefully read and rely
on information memorandum before investment
 Capital Protected Structure Option 2
Details Option 2
CREDIT RATING Minimum of PP-MLD-AA
UNDERLYING Equi-Weighted basket of HDFC Bank, Kotak Bank, RIL, MARUTI, BRITANNIA AND TCS

SECURED Yes, with a minimum 1x charge created with Debenture Trustee

LISTING Listed on leading stock exchange
MINIMUM INVESTMENT
26 L Per Client
AMOUNT
PRINCIPAL PROTECTION Principal is protected at maturity upto Face Value only
TENOR 36/42 Months (Primary issuance)
Average of Closing Levels of all Stocks on Primary Issuance Date and next two
ENTRY LEVEL
months Expiries
Average of Closing Levels of all Stocks on expiries of 34th to 36th Month from
EXIT LEVEL
primary issuance date
UNDERLYING
EXIT LEVEL/ENTRY LEVEL - 1
PERFORMANCE
UPSIDE PARTICIPATION 100%1 Upside of Basket returns

RETURN PROFILE OF If Underlying Performance is negative: Face Value

INVESTMENT If Underlying Performance is Positive : (1+Underlying Performance)*Face Value

Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the Applicable Laws. Investor should carefully read and rely
on information memorandum before investment
 General Risk Factors
Credit Risk
 Repayment of principal as well as the returns are
subject to the credit risk of the underlying
1 investments
 In the event the Issuer is insolvent or goes
bankrupt, the investor may stand to lose the entire
invested Principal.

Liquidity Risk
 Underlying investments are fixed tenor with no
interim exit options for the investor.
2  While the underlying investments can be listed,
there is no assurance that liquidity will be available
on the same if there are no active buyers and
sellers.

Interest Rate Risk

 Rise and fall in the interest rates influence the
3 valuation of the investment, thus may result in
mark to market loss during the life of the
investment.

Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the Applicable Laws.
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Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the Applicable Laws.