Equirus Securities

                       

About

Equirus Capital was founded in July 2007, with initial focus in M&A and Private Equity advisory. Equirus has built impeccable credential and market standing across domains & has created a niche for itself in its ability to structure and deliver transactions in-line with client’s requirement.

With a view to broad base its service offerings, Equirus launched Portfolio Management Services in October 2016. SEBI Reg. No.: INP000005216

Equirus commenced Institutional Equities & Research in January 2010, with membership of BSE and NSE and teams located at Mumbai & Ahmedabad.

Equirus started ECM practice in 2011 with market leading IPO’s for L&T Finance and TD Power.

Federal Bank took a 20% stake in Equirus in 2018

Equirus started wealth management with 8 offices in 2018.

Key staff

Ajay Garg – Ajay Garg is the founder of Equirus Capital. Ajay is a veteran investment banker,    with over 22 years of experience in Investment Banking. He is acknowledged as being amongst the top deal makers in the country. He started his career with DSP Merrill Lynch where he was involved with several landmark deals during his stint there between 1996–2002. Prior to setting up Equirus in 2007, he was the group CEO of a leading investment bank which he co founded. Ajay holds a first degree in engineering and is a post graduate in management from IIM, Ahmedabad.

Rajiv Agarwal – Rajiv Agarwal is currently associated with the private equity set-up of Rare Enterprises (“Rare”) as a Principal. Rare enterprises is and asset management firm owned by Mr. Rakesh Jhunjhunwala. He started his career with Accenture in 1993 and spent 12 years consulting with over 70+ organizations in India, Europe, South East Asia and Middle East. During this period he has worked in diverse industries such as Airlines, Biotechnology, Chemicals, Engineering and Construction, Iron and Steel, Pharmaceuticals and Oil & Gas. Rajiv joined Rare Enterprises in 2005 to assist Mr. Rakesh Jhunjhunwala with his investments in sectors such sectors such as education and healthcare, digital media, oil & gas, healthcare and biotechnology. Rajiv is a B. Tech-Chemical Engineering from Banaras Hindu University. Rajiv currently holds Directorship with Aptech Ltd., Care Hospitals, Hungama Digital Media Entertainment Pvt. Ltd., John Energy and Concord Biotech.

Deepak Singhal – Former Executive Director, Reserve Bank of India. Deepak Singhal is the Independent Director on the Board of Equirus Capital. Singhal has an experience of over 3 decades with the Reserve Bank of India and a record of successful delivery through a range of challenging and diverse assignments. As Regional Director, he headed the crucial New Delhi Office of RBI for over two years. Singhal has handled key responsibilities in Human Resource Management, Information Technology, Corporate Strategy, Budgeting and Corporate Services. He was responsible for issue of detailed guidelines on implementation of Basel III and for assessment of additional capital requirements for Indian banks to meet Basel III minimum ratio till March 2018. He retired as the Executive Director in 2019. Singhal has a Bachelor’s and a Master’s Degree in Business Administration from Allahabad University. He is Certified Associate of the Indian Institute of Bankers and has done a Post Graduate Programme in Rural Management from Jaipur.

Ajit Deshmukh – Managing Director & Co-Head Investment Banking – Ajit Deshmukh has over 25 years of management and leadership experience. He has been associated with Equirus in leading the technology space and had played a leadership role in cross border Mergers and Acquisitions (M&A) and fund raising for technology companies in IT industry & Investment Banking industry. He also heads the digital practise where we work with new age tech driven startups on their seed, growth capital, and M&A requirements. Prior to joining Equirus he was the founder of Wizarth Advisors, a boutique investment banking firm that offered financial advisory service to cross boarder M&A transactions. Deshmukh has been working with founders of IT companies and CEOs of High growth companies in their Inorganic Initiatives. He brings in an unique combination of understanding of Technology, Business, Entrepreneurship allowing him to be an Advisor of choice for several companies. He has successfully handled Technology leadership positions at Citigroup and US Dept. of Defence. Ajit has nearly 15 years of experience as a successful entrepreneur in IT and Financial services. He is a Post Graduate from NCST and BE in Electronics from Mumbai University. Ajit can be reached at [email protected]

Harsh Dugar – Harsh Dugar is the Head of the Wholesale Banking Division at The Federal Bank Ltd. He joined Federal Bank in 2016, after completing 20 years in Corporate Banking, HDFC Bank.. Dugar brings along a significantly rich expertise in the field of Corporate Banking which spans across various Verticals and Geographies. His scope of work extends Pan India with complete responsibility on various aspects under Corporate, Institutional and Commercial Banking. He holds a Bachelor’s Degree with Honours in Accounting & Finance from the University of Calcutta as a University Topper. He is a qualified CWA with All India Rank holding and holds a Gold Medal in CFA along with an All India Rank . He was also a part time faculty with ICFAI Business School, Kolkata during his initial career.

Viraj Mehta – Managing Director & Fund Manager – Equirus PMS – Viraj Mehta has over 11 years of experience in the field of investing with an excellent and proven track record. The Equirus Long Horizon fund (ELHF) is one of the best performing funds since its launch in October 2016. Viraj was selected by Wall Street Journal (WSJ) as part of “Asia’s Master Stock Picker” series for India. He had been part of the award winning fund management team at Franklin Templeton Investments managing an AUM of ~US$ 6bn. Viraj had also been the lead analyst for managing the small companies fund at Franklin Templeton Investments. He is a MBA from MDI, Gurgaon & Chemical Engineer from Nirma Institute of Technology, Ahmedabad. Viraj can be reached at [email protected]

Funds managed

Funds Asset Class
Equity Long Horizon FundEquity
Equity Multi Cap FundEquity
Equirus Debt FundMutual Funds

Equity Long Horizon Fund

  • Investments in stocks taking at least 24 months but ideally 3 to 5 years perspective.
  •  Small and Mid cap funds
  • 10-15 stocks
  • Managing market exposure if market appears near any of extremes- extremely undervalued or overvalued. Exposures will primarily be managed through changing cash level in portfolio.
  • Will exit when stocks have achieved our objectives or if our thesis is no longer working
  • Idle cash is deployed in liquid instruments.
  • ·         Performance as on 31st March 2021
YearReturn (in %)
1144.22
233.71
320.04
5N.A
Since Inception23.20

Inception date: Oct,2016

Equity Multi Cap Fund

  • Investments in stocks taking at least 24 months but ideally 3 to 5 years perspective.
  • Large and Mid cap funds 
  • 15-20 stocks
  • Managing market exposure if market appears near any of extremes- extremely undervalued or overvalued. Exposures will primarily be managed through changing cash level in portfolio.
  • Will exit when stocks have achieved our objectives or if our thesis is no longer working
  • Idle cash is deployed in liquid instruments.
  • Atleast 65% will be invested in Large cap companies, rest in mid and small cap companies. Divergence level will be of +/-5%.
  • Comparability this fund have a higher liquidity.
  • Inception date 2020

Equirus Debt Fund

  • To invest directly in debt of corporates/governments or debt of mutual funds
  • Process driven approach with detailed financial models that are based on standard template thus limiting room for mechanical errors and resulting in high productivity.

Investments objectives and Policy

  • Bottom up process for stock selection with emphasis on absolute return.
  • Focus on stock that offer meaningful upside.
  • Stock selection based on stringent research criteria of industry attractiveness, growth prospects, company track records, financial disclosure, corporate governance and future potential growth.
  • Process driven approach with detailed financial models that are based on standard template thus limiting room for mechanical errors and resulting in high productivity.

Investment philosophy

Equirus PMS Investment philosophy is based on the synergies of value and quality. We intent invest in relatively undiscovered businesses with long growth potential. To qualify for our portfolio, companies must have the several qualities most relevant to long-term growth—qualities recognized and rewarded over time by investors—and be selling at a price below their intrinsic value.

Media

Analyst questions

  1. What are the factors considered for the companies to qualify for long term growth?
  2. As mentioned in the multicap that divergence level will be of +/-5%. Is there any time that divergence level has gone up 5%.
  3. What are the top holding companies in PMS funds?
  4. What are the fees structure of the services?
  5.  If following Bottom-up approach then how do to consider Market changes?

                                                                                                Prepared by

                                                                                                    Kanan Agrawal.

Author

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