Exhilway Launches Innovative Debt Product

Online, April 17, 2013 (Newswire.com) - Exhilway Private Capital Market (EPCM), India's first secondary market for the unlisted companies which enables SMEs to raise funds from the open market has launched an innovative debt product called EPCM Fully Convertible Debentures Strategy (FCD) - I. Under this, EPCM will bring together multiple unlisted emerging companies and will centrally observe the business operations of the companies which will enhance the transparency, professionalism and profitability of the companies participating in the EPCM FCD-I. The product will be offered to the informed private investors only as per the section 67 of the Indian companies act.

EPCM will raise INR 500 crore or close to US $87 million by issuing FCDs this year.

"This is a highly innovative debt product, multiple companies from several business sectors will come under one roof, since the product will be secured against the assets of the companies along with being managed from one office the risk of losing money vanishes away," said Rahul Sahay, Senior Vice President, EPCM.

The product is crafted for the high net worth investors with the minimum entry size kept at INR 25 lakhs or close to US $43,700, the tenure of the product will be 18 months with fixed annual interest payment of 12% to the investors, the principal amount will be converted into equity at the end of 18 months and the equity exit at a higher price will be triggered by the EPCM and its allies. The investor reserves the right to hold the equity of any portfolio company for an indefinite period, in case he wishes to remain invested for a longer duration, each portfolio company will be treated differently, however the NAV will be together calculated on all the participating companies.

"EPCM has a successful track record of building valuations, such products help SME companies to build their valuations from the first day of business. The debt products on the other hand is safe to the investors and the equity participation helps them enjoy the fruits of growth," said Joy Ghosh, Independent Business Development Manager, EPCM.

NXT Bizness Solutions, a Hyderabad based financial consulting firm has bagged the order of managing the companies by providing observers and the required due diligence. Quintessence Pvt. Ltd. is the merchant banker to the issue followed by B5 Consultants Pvt. Ltd. who will provide legal advice to the issuer and the portfolio companies.

EPCM plans to launch several innovative products which will strengthen the position of the SMEs in India and will offer investors a great product to park their funds in the times when people are losing trust in the equity markets.

"EPCM is dedicated to mutual growth, the SME companies have to understand that the process will take time but it will be far lesser than the years spent by the business icons of our time to build their businesses. The companies can now imagine to achieve a fast track success," said CA Ashok Ostwal of Ashok Ostwal Advisors, exclusive partner of EPCM in Bangalore.