Capital Private Limited

INDIA SPIN-OFF FUND

THE SPIN ON SPIN OFFS

SPIN-OFFS, ALSO REFERRED AS DE-MERGERS, IS ESSENTIALLY A CORPORATE STRATEGY WHEREIN A COMPANY FORMALLY RESTRUCTURES ONE OR MORE OF ITS EXISTING BUSINESS SEGMENTS INTO A SEPARATE COMPANY TO ACHIEVE/DERIVE CERTAIN OBJECTIVES/BENEFITS SUCH AS BETTER MANAGEMENT FOCUS, VALUE UNLOCKING, ATTRACT STRATEGIC PARTNERS ETC.

Several Indian corporations engaged

in entirely different businesses are, at present, structured as conglomerates, usually involving a parent company and several subsidiaries. Such conglomerates often trade at a discount to the overall individual value of their businesses. of most Indian conglomerates are lifecycle. As a result, it is imperative for managements to evaluate these synergies periodically. Individual subsidiaries

indices over the mid to long term from the time of announcement of such an event. At a time when many professional investors lament that the and the widespread use of screening proliferation of institutional funds techniques, have made it tougher to

more different units, each focusing on specific areas of business. Markets have received such developments positively; as seen from the share price behavior of such units. Experts

find bargains in the stock market; Spin-offs as an investment theme continues to pay off handsomely.

advantages of de-mergers are not limited to investors alone, but also prove to be a tax efficient manner of separating unrelated businesses for the management; either for family

also

indicate

that

the

at different points in their business

With rapid growth on its radar, India

structures and their inherent business

Inc. is getting more focused. While the Mergers and Acquisitions route that Indian companies have adopted is receiving extensive media and

succession or for corporate governance.

Global empirical studies have shown that spin-off opportunities of listed companies have relatively generated

investor attention, de-mergers do not. Over the past few years many Indian companies have spun off into two or
UNIFI CAPITAL PRIVATE LIMITED 1

higher returns than the market

WHAT IS A SPIN OFF?

SPIN-OFFS OCCUR WHEN A PARENT CORPORATION DISTRIBUTES ALL OR MOST OF ITS HOLDINGS OF STOCK IN A SUBSIDIARY TO THE PARENTS SHAREHOLDERS BASED ON THE PROPORTION TO THEIR HOLDINGS IN THE PARENT COMPANY, i.e. ON A PRO RATA BASIS.

SINGLE BUSINESS ENTITY SHAREHOLDERS X CO. [PARENT]

LISTED 100%

MULTIPLE BUSINESS ENTITY SHAREHOLDERS X CO. [PARENT]

LISTED 100% 100%
DISTRIBUTION OF SHARES OF A, B & C CO TO THE SHAREHOLDERS OF X CO., EITHER 100% OR PART

SHAREHOLDERS X CO. [PARENT]

LISTED

DISTRIBUTION OF SHARES OF Y. CO TO THE SHAREHOLDERS OF X CO., EITHER 100% OR PART

SHAREHOLDERS X CO. X CO. [PARENT]

LISTED

100%

Y CO. [SUBSIDIARY]
UNLISTED

Y CO. [SUBSIDIARY]
LISTED

[SUBSIDIARY] [SUBSIDIARY] [SUBSIDIARY] [SUBSIDIARY] [SUBSIDIARY] [SUBSIDIARY] TEA TEA STEEL TELECOM STEEL TELECOM BUSINESS BUSINESS BUSINESS BUSINESS BUSINESS BUSINESS
UNLISTED UNLISTED UNLISTED LISTED LISTED LISTED

A CO.

B CO.

C CO.

A CO.

B CO.

C CO.

As a result, the subsidiary company

is no longer owned or controlled by the parent company and there are two separate publicly traded companies. Prior to the spin-off, shareholders whereas after the spin-off they own shares in both the parent and the only own the parent companys stock,

because both kinds of companies often have different lines of business Since the parent and different business environments. generally are large diverse operations, they cannot provide the kind of support that the subsidiary needs management, financial, and resource for continuous growth. Moreover, parent companies usually focus their operations. Consequently, the spinattention and resources on their core off allows the spun-off company to negotiate management, finance, and resource issues with its own board of directors and to make decisions for from the transaction because it can concentrate on its most important spun-off company. itself. The parent company benefits companies

Some parent companies decide to

spin-off subsidiaries because they believe that all their lines of business are not accurately valued in the

capital market. Spin-offs enable each

company to obtain capital consistently

based on its own operations and each

subsidiary. These transactions also

company can raise capital according companys business. In essence, the

provide the company an opportunity to dispose of a subsidiary in a tax-free manner.

to the way capital markets affect each motivation here for spinning-off a

company is to give investors a clearer view of each companys business operations.

Corporations have a variety of motivations for spin-offs, including management reasons, capital market factors, risks, tax benefits, marketing factors, and regulatory/legal reasons. Spin-offs can help

The spin-off might attract new investors to the spun-off company companys value because and it might improve the parent undervalued subsidiary is no longer associated with it. the

management problems of both parent

alleviate

operations unencumbered by the

companies and spun-off companies,

UNIFI CAPITAL PRIVATE LIMITED

SPIN-OFF VALUATION
SPIN-OFFS MAY RESULT AFTER MAJOR SHIFTS IN THE ECONOMIC ENVIRONMENT AFFECTING CORPORATIONS AND THEIR SUBSIDIARIES. WHILE A COMBINED CONGLOMERATE STRUCTURE MAY HAVE BEEN OPTIMAL IN THE PAST, DUE TO MARKET REFORMS AND DEEPENING CAPITAL MARKETS, THE SEPARATION OF OPERATIONS MAY NOW BE APPROPRIATE.

advantage of an independent stock

spun-off subsidiary has the

Example

price which should reflect the capital performance. investment Spin-offs

Orient paper, a 2000 Cr top-line company derives `200 Cr from paper; `1000 Cr

markets assessment of managements investors with a wider range of opportunities provide

from cement; `500 Cr from electric fans, and `300 Cr from the rest of its businesses pollution control equipment.

that includes lights & luminaries, industrial blowers, chlorine & chemicals, and air

to different investor clientele. The market valuation of the combined company will always be lower than that of distinct businesses listed as separate entities. This valuation gap is called conglomerate discount. Such discounts range from 15-50%, from company to management and the transparency of segmental disclosures. company, depending on the quality of

appealing

Such structures do not get the attention of an investor who would like to invest only in cement or in consumer goods or in paper.

ICICI BANKS SUBSIDIARY VALUATION LIFE INSURANCE ASSET MANAGEMENT ICICI SECURITIES ICICI HOME FINANCE GENERAL INSURANCE FOREIGN SUBSIDIARIES TOTAL SUBSIDIARY VALUE VALUE POST HOLDING DISCOUNT (15%)

METHOD APPRAISAL VALUE 4% OF AUM PE OF 15X SEP-12 PE OF 12X SEP-12 COMBINED RATIO 1.0X SEP-12 BOOK

VALUE OF SUB A 161200 36080 22753 23826 14811 92493

ICICIS BCS SHARE 74% 51% 100% 100% 74% 100%

ICICI SHARE (Rs. MIL) 119288 18401 22753 23826 10960 92493 287721 244563

PER SHARE OF PARENT 107 17 20 21 10 83 258 219

ICICI BANK SOTP VALUATION FY 12-13 EPS TARGET PE MULTIPLE VALUE FOR BANKING BUSINESS SUBSIDIARY VALUATION AT 15% HOLDING DISCOUNT TOTAL VALUE SEP-11 PT IMPLIED SEP-12 P/B (LENDING BOOK) 63.8 17.3 1104 219 1324 1350 2.55

discounts and improve shareholder

Spin-Off helps remove such

Example

return. It also helps the management

SOTP Valuation of ICICI Bank

raise capital for individual business entities without diluting the interests of other businesses.

A December 2010 research report released by a reputed research firm, analyzed ICICI Bank and concluded that it was at a 15% discount to its subsidiaries valuation.

The alternate method of Carve-outs, where the parent company issues an IPO of one of its subsidiaries might help in raising capital but does not remove the conglomerate discount and shareholder return.

as a consequence may not enhance the

UNIFI CAPITAL PRIVATE LIMITED

GLOBAL INSIGHTS INTO SPIN-OFFS

In the US, many firms have analyzed the impact of spin-offs on shareholder return as well as corporate efficiency over a long period of time. Some of the conclusions arrived at are as follows:

During the 25 year period till 1990, stocks of spun-off, child companies outperformed During the same period, Parent companies outperformed the indices by 6% p.a.

industry peers and S&P 500 by 10% p.a. in their first three years of independence.

During the 15 year period till 2005, the outperformance was 18% in first two years Between 2000-05, Spin-offs from the top 1500 firms outperformed S&P500 by 45% in first two years

SOURCES: DELOITTE, 2008 AND LEHMANN BROTHERS

Similar study done on all major Spin-Off transactions over a ten year period ending 2008 across all major markets including US, Europe & Asia by a top global consulting firm concluded as follows:

A year after the announcement, the parent share price was up by 23% on an average having increased by 2% on announcement

Once separated, share prices for both parent and child increased by 15% over a year, after an initial 6 month period of stability

On a relative basis, de-mergers in manufacturing companies offered better returns than that of financial/telecom/media and entertainment sectors
2009-2010 1998 - 2008

1990 - 2005

Source: Deloitte, 2008

1965 - 1990

Source: Lehman Brothers

1965

1975

1985

1995

2005

2010

PERFORMANCE ANALYSIS IN THE INDIAN CONTEXT

about 70 such transactions. We Our research universe includes

Numerous literature available on the benefits of Spin-offs in the Indian context,

converge on the increased value created for shareholders. However, little has been While Spin-offs strategies have been utilized in the past, the frequency of Spin-Off related announcements have increased substantially since 2005. done to quantify the actual shareholder value created as an outcome of Spin-offs.

have excluded about 9 companies

that are either illiquid or where

the market cap is very small

(below 50 Cr).

Unifi has researched into each of the Indian Spin-off companies that subsequently

listed on the stock exchanges; and evaluated both the parent and spin-off companies stock performance. BSE has compiled a list of all Spin-off transactions that resulted in newly created corporate entities which required listing.
Announcement date (S) to board approval (S + 1 week) Court approval (S + 9/12 months)

TIMELINE

SPIN-OFF IN INDIA

Shareholder approval (S + 6 months) 12 - 15 months

Eventual stock exchange listing (S + 12/15 months months)

Our study made the following inferences after profiling all the relevant transaction data: The study does not consider other have accrued to shareholders of corporate benefits that would In the Indian context, a typical Spin-Off takes about 15-18 months to list since announcement

the Spin-off companies and hence higher than stated in the study. actual returns could be slightly

Stocks of companies that announce and implement Spin-Offs deliver median outperformance of 16% over the BSE500 index The actual median stock performance was 45% over the period. Excluding the outlier event of Reliance, the median stock performance drops to 35%, while still delivering an outperformance of over 10% over the BSE500 index While the median outperformance is 16%, the average outperformance is 55% signifying that returns are skewed by few big winners and few big losers. This outperformance is based on considering the stock performance of the parent, one month from the announcement date and up to one month after listing of the Spin-off company Spin-off companies (child), on an average, have underperformed by 27% in the first year. This indicates that shareholders exit this spin-off companies post listing while they retain the parent. This phenomenon has been well recorded abroad and explained

UNIFI CAPITAL PRIVATE LIMITED

UNIFI INDIA SPIN-OFF FUND

OBJECTIVE
The fund seeks to generate superior risk adjusted returns relative to market indices by investing in stocks of companies undergoing Spin-offs. Typically, such an action by the company will help remove the holding company discount that the linked value-price mismatch, by closely tracking the entire Spin-Off process and investing in such companies after a detailed review of their fundamentals and corporate governance standards. market attributes and thereby enhance the stocks valuation. Unifis proposition is to gain from the information asymmetry

UNIVERSE
Our universe is built from the Spin-offs approved by Boards of respective companies as filed with the stock exchanges. We will never consider companies where such disclosures are not made, thereby clearly avoiding market rumors and we have been practicing over the last ten years. speculation. From the universe of such companies, we would select ideas to invest based on a bottom up approach that

INVESTMENT RISK
While various research reports support our inferences about the outperformance potential of Spin-offs, the significant difference between the average return and mean return suggests that there could be few big winners and big losers. A portfolio with such a composition will have relatively higher volatility than broader markets. Since the Spin-off strategy is based on the hypothesis of identifying a stock valued at X, based on prevailing peer valuation of respective businesses, and buying it at 0.7X; it is fair to expect that a Spin-off portfolio will have lesser capital risk than broader markets.

STRUCTURE
While the fund will be open-ended, it would be advisable to keep an investment perspective of 18-24 months to provide enough time for the market to price the impact of Spin-off. The fund will build a portfolio of 10 companies, where the active, the activity at the account level will be passive, resulting in lower transaction costs and better post-tax return. 10% p.a. on the investor capital. exposure to any chosen sector will usually not exceed 30%. While the tracking and monitoring of the investments will be The fund manager will be paid a management fee of 1% p.a. of the funds managed and 20% on profits generated above

FREQUENTLY ASKED QUESTIONS (FAQs)

Why do companies undertake Spin-offs? Companies have a variety of motivations for Spin-offs, including management reasons, capital market factors, risks, tax benefits, marketing factors, and regulatory/legal reasons. Spin-offs can alleviate management problems of both parent companies and spun-off companies, because such companies often have different lines of business and different business environments. What is the Global experience in Spin-Off investments? Global studies on all major Spin-Off transactions over a ten year period ending 2008 across all major markets including US, Europe & Asia indicate that the parent share price rises by an average of 23% on announcement, while share prices of both the parent and child increased by an average of 15% over a year; after an initial 6 month period of stability. What are the different methods that are used to unlock value?
100%
DE-MERGER

around Spin-Offs? Between 2005-2010 there were 76 Spin-off transactions in India. In a typical year, one might expect anywhere from 5-15 such opportunities. Unifis India Spin-Off fund is an open-ended fund that will cherry pick 7-10 transactions for investment over a 15-18 month period. What is the procedure for Spin-Off of a company in India? How long does the process take?
Announcement date (S) to board approval (S + 1 week) Court approval (S + 9/12 months)

Shareholder approval (S + 6 months) 12 - 15 months

Eventual stock exchange listing (S + 12/15 months months)

While some have taken 15-18months, the average duration for a Spin-Off transaction is about 14.5 months. Over the period of 15-18 months involved in a typical spinoffs evolution, how does the value emerge into stock prices? Broadly there are three phases of value capture in a Spinoff. The first phase begins with the announcement of the companys intent to demerge. It impacts stock price based on the level of clarity with which the company describes the rationale. In the second phase, the market ascribes a value to fundamental catalysts such as independent management focus, improved capital allocation and operating efficiencies. The third phase begins when the spin-off process finally results in the creation of two separate entities and each is able to attract strategic and/or financial investors that are able to appreciate its potential. Do all spin-off transactions result in profits for shareholders? No. While majority of spin-off transactions resulted in profit for shareholders, few had negative returns. Example: Bajaj Auto spinoff that occurred during 2008. Reasons range from decline in valuations in peer group companies during the period of spinoffs to fundamental changes in the profitability of the business sector the company belongs to. Unifis focus in sectoral research helps in avoiding troubled transactions. Will Unifi invest in Potential Spin-Off candidates as well? No. There are certain speculative risks in anticipating
UNIFI CAPITAL PRIVATE LIMITED 9

Quantum of value unlocked

75% 50% 25% 0%

EXIT NON-CORE BUSINESS ENTER NEW BUSINESS STAKE SALE TO STRATEGIC / FINANCIAL INVESTOR SUBSIDIARIES & JV

Stages of value unlocked

Which method has been proven to be most effective in creating shareholder value? Why? Spin-Offs are particularly effective in increasing shareholder value because the parent company can concentrate now on its most important operations unencumbered by the spunoff company. A spun-off subsidiary also has the advantage of an independent stock price which should reflect the capital markets assessment of its managements performance. Have Indian companies been using Spin-offs? Several Indian companies have adopted the Spin-off route in the recent past. This included some prominent names like Reliance Industries, Bajaj Auto and GE Shipping. Due to market reforms and deepening capital markets, corporate entities have actively begun restructuring businesses as independent structures. Are there enough Spin-off events in India to build a strategy

SOTP

IPO / ASSET SALE / STRATEGIC SALE

such events. Even though the pay offs are substantial with speculative investments we dont intend to expose ourselves to such risks. On the other hand, our approach would be to invest only into events that have certainty and as a consequence while returns are likely to be lower, they are surer and safer. Will Unifi consider post Spin-Off opportunities? Yes. In few transactions, market misprices one of the demerged companies due to structural reasons. For an example, when a company that is part of Sensex or any other index undertakes spin-off, the baby company may not form part of the index. A fund that is mandated to invest only in stocks that form part of the index may choose to sell baby company that will result in abnormal decline in stock price just after listing. Such opportunities could be exploited by Spin-off fund. Will the portfolio hold investments passively or undertake regular trading in its holdings? Typically positions are undertaken with the intent to benefit from the entire investment cycle of such transactions and will tend therefore to be held passively. The resultant savings in terms of long term capital gains, taxes and lower transaction costs are an important aspect of this strategy. However, we will not hesitate to be opportunistic should we find attractive exit prices. Will the portfolio be fully invested always? Given the long investment horizons and high concentration involved in each such position, it is critical that the fund manager be free to cherry pick Spin-off linked investment opportunities after conducting a thorough due diligence. It is certainly probable that during a given period of time, we might prefer to hold cash and wait for interesting opportunities rather than be overly focused on being fully deployed. How will you benchmark performance? Since most companies will tend to be from the Midcap space, it would be appropriate to benchmark with the BSE500 index. However, it is important to recognize that SpinOffs involves 15-18 months of process during which time, the returns are actually realised in a lumpy manner as key milestones in the Spin-off process are achieved. Moreover, due to high cash levels and No-trade periods that

are a natural extension of this strategy, active benchmarking in the short term can be misleading. What are some of the risks associated with such Spin-offs?

Systemic risk Inevitably any equity position, including one in a spin-off will bear correlation to broad market direction. Sector selection and bottom up company research are the tools available to address this risk.

Liquidity As described in this document a spin-off undergoes periods where a significant portion of value, represented by the child company, could become illiquid pending re-listing. No-trade periods refer to the period of time (typically 2-3 months) when the child company is awaiting regulatory approvals prior to separate listing and trading. How will NAV be calculated during No-trade periods ? The average of one weeks closing stock price minus the current market price of the parent (which will remain listed) will be used to denote the value of the child pending its listing. How will the fee structure be computed? The management fee of 1% p.a. will be charged monthly rear-ended on the portfolios NAV. The performance fee is charged on 31st of March, each year; without factoring the mark to market value of No-trade positions in the portfolio. While predicting future return is not possible, what is a fair return one can expect from this fund? As explained in Page 7, our research which evaluated all the Spin-off transactions between 2005-2010 in India, observed a median outperformance of 16% over and above the BSE500 Index. ` 100 invested in each spin-off transaction happened during this period delivered an absolute return of 45% over an average period of 15 months. What is Unifis USP? Typically such investment strategies seek to exploit the opportunity arising from a combination of factors such as information asymmetry and regulatory complexity. Since success breeds imitators, who compete for returns using me-too methods; it is important to be the first mover and capture the early phase. Unifi has a demonstrated philosophy of identifying relatively niche, but highly specialized and profitable themes, early.

UNIFIS APPROACH TO CLIENT MANAGEMENT

ONGOING RELATIONSHIP MANAGEMENT
To keep things simple for the customer, we assign ownership of each customer to a Relationship Manager (RM). It is the RMs responsibility to co-ordinate internally to exceed service expectations of the customer. Unifis Relationship Managers investment philosophy. While the RM is accountable on a day-to-day basis, the CEO retains overall accountability and is available to assist in any situation. have proven track records in capital markets and are capable of experienced advisement in line with Unifis market view and

REPORTING
Unifis Back Office operations are equipped with the latest technology and processes to handle accounting, settlement, custody and reporting in a totally secure environment. At the end of each working day, we have the capability to provide a a monthly reporting cycle for all customers. The monthly report, containing a transaction statement, bank statement and securities custody statement, provides confirmation of holdings as well as a comprehensive and up-to-date status of an accounts performance. Confidentiality of client information is assured through multiple levels of security. 100% up-to-date statement to the customer. While interim reports are available on request via e-mail, Unifi also maintains

PERFORMANCE REVIEW
A quarterly meeting is scheduled between the client and the RM to review the performance for the quarter and the year to date. Significant transactions and positions are discussed. Unifis market view and its near term plans are presented. Customer feedback and specific requests can be recorded and managed. If a customer is located abroad, the review happens over a conference call. Unifi believes that nothing can replace human contact and strives to schedule in-person meetings to the extent feasible.

AUDIT
All customer accounts are audited annually by Brahmayya & Company - one of Indias oldest and most reputed C.A. firms. An audit certificate along with detailed financial statements is provided to the client by Brahmayya & Company. Unifis statutory auditors are Deloitte Haskins & Sells.

PROCESS
Unifi provides a wide range of customized solutions to help address a variety of situations but many things are common.

WE LEVERAGE THE LATEST TECHNOLOGY AND BEST PRACTICES FOR PROVIDING HIGH QUALITY OF SERVICE. WE MAKE DECISIONS AND ADVICE BASED ON RESEARCH, NEVER ON HEARSAY AND TIPS. SAFETY OF CAPITAL AND LOW RISK APPROACH IS OUR PRIME CONCERN.
UNIFI CAPITAL PRIVATE LIMITED 11

ANNEXURE:
CASE STUDIES IN THE INDIAN CONTEXT
Reliance Industries:
PRE DE-MERGER RELIANCE INDUSTRIES
QTY PRICE VALUE BSE 500
100.00 ` 268.80 ` 26,880.00 3,046.81

POST DE-MERGER RELIANCE INDUSTRIES

QTY PRICE VALUE
100.00 ` 419.78 ` 41,978

RELIANCE INFRA
QTY PRICE VALUE
7.50 ` 629.25 ` 4,719

RELIANCE COMMUNICATIONS
QTY PRICE VALUE
100.00 ` 312.95 ` 31,295.00

RNRL
QTY PRICE VALUE
100.00 ` 33.90 ` 3,390

RELIANCE CAP
QTY PRICE VALUE
5 ` 533.30 ` 2,667

BSE 500
INCREMENTAL CHANGE % WEALTH CREATION

4,711.96
1665.15 55%

BSE 500
TOTAL VALUE INCREMENTAL VALUE % WEALTH CREATION

4711.96
` 84,048.88 ` 57,168.88 213%

Eveready Industries:
PRE DE-MERGER EVEREADY INDUSTRIES
QTY PRICE VALUE BSE 500
100.00 ` 31.00 ` 3,100.00 1,939.64

POST DE-MERGER MCLEOD RUSSEL

QTY PRICE VALUE BSE 500
100.00 ` 60.90 ` 6,090.00 3213.76

EVEREADY INDUSTRIES
QTY PRICE VALUE BSE 500
50.00 ` 100.25 ` 5,012.50 3213.76

BSE 500
INCREMENTAL CHANGE % WEALTH CREATION
1274.12 66%

TOTAL VALUE INCREMENTAL VALUE % WEALTH CREATION

` 11,102.50 ` 8002.50 258%

GE Shipping:
PRE DE-MERGER GE SHIPPING
QTY PRICE VALUE BSE 500
100.00 ` 198.65 ` 19865.00 3521.83

POST DE-MERGER GREAT OFFSHORE

QTY PRICE VALUE BSE 500
20.00 ` 745.90 ` 14,918.00 5,439.81

GE SHIPPING
QTY PRICE VALUE BSE 500
80.00 ` 211.20 ` 16,896.00 5,439.81

BSE 500
INCREMENTAL CHANGE % WEALTH CREATION
1,917.98 54%

TOTAL VALUE INCREMENTAL VALUE % WEALTH CREATION

` 31,814.00 ` 11,949.00 60%

ABOUT UNIFI
Unifi Capital Private Limited is a specialized portfolio management company based in Chennai with offices in Bangalore, Hyderabad, Mauritius and UAE. It is managed by a core team of five experienced capital market professionals who co-founded the company in 2001 along with the principal founder and Chief Investment Officer, Sarath Reddy.

Unifi manages funds for several high net worth families in India and overseas. Its client-centric approach rooted in building enduring relationships has generated immense goodwill that continues to propel growth. Unifi also advises international institutional capital managed by its Investment Management subsidiary in Mauritius.

Unifi offers multiple customized investment opportunities to its clients through the low risk moderate return Event with high levels of personalization and customer service is fundamental to Unifis portfolio management approach. It rigorously follows a disciplined investment process and places utmost focus on safety of clients capital. Unifi is Commission (FSC), Mauritius.

Arbitrage style being the flagship. Building differentiated styles that offer stable absolute returns or superior relative returns

regulated by Securities and Exchange Board of India (SEBI) and its overseas subsidiary is regulated by Financial Services

UNIFIS OTHER INVESTMENT STYLES INCLUDE: STYLE NAME Alternate Investing (Event Arbitrage) INVESTMENT STRATEGY Open Offers/Buybacks Dynamic Management: Stocks from three sectors TARGET RETURNS 15% Nifty +X% 2X in 2-3 years

Sector Trends Fund Special Opportunity Fund

Concentrated value picks, Bottom Up Approach

Delisting Opportunity Fund*

Passive holding of strong companies with delisting potential

50% in 2 years _

Realty & Related Fund Insider Shadow Fund

Invest in Realty and Related sectors Value companies where the insider is buying back

UNIFI CAPITAL PRIVATE LIMITED

13

www.unificap.com

CHENNAI BANGALORE HYDERABAD MAURITIUS UAE

Sarath Reddy +91 98410 39884 G Maran +91 98410 96034 Glenn Roger +91 98840 21059 Christopher Vinod +91 96322 44747 Prabhakar +91 98496 69488 Ajo George 971-50-2037486 Sudhan 971-50-7251418

UNIFI CAPITAL PVT. LTD.

Capital Private Limited

11, Kakani Towers, 15 Khader Nawaz Khan Road, Nungambakkam, Nungambakkam High Road, Chennai 600006. INDIA. Ph: +91 - 44 3022 4466, 2833 1556 Fax: +91 - 44 2833 2732
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