Established in 1991, SR offers financial advisory services to promoters and companies in corporate finance, equity funding, special situation funding, stressed asset & NPA resolution and NCLT / IBC. We also offer international collaboration advisory in association with our associates in strategic investment, strategic partnerships, M&A, International Listing and International Buy-outs.
For nearly 3 decades, we are actively involved with promoters offering our services in
- Corporate Finance
- Equity Funding
- Special Situation Funding
SR specialises in Asset Reconstruction and NPA resolution with its excellent relationship with Special Situation Funds & ARCs. It has executed scores of transactions in this segment.
NCLT / IBC Advisory
With its proven track record in structuring resolutions and negotiating settlements with Institutions, Funds / ARCs and Banks, SR stands out and distinct for its role in reviving companies / assets back to performance with its RESOLUTION ADVISORY.
International Collaboration Advisory
Strategic Investment, Strategic Partnership, M&A, International Listing and International Buy-outs Advisory are offered with the assistance of our international associates.
- Raised funding for companies of multi-various sectors since 1991
- Piloted the earliest Private Equity investment in South India during early 90’s
- Restructuring scores of accounts for an institution during 2000-05
- Executed the second case of CDR, with a very unique structure
- Active in asset reconstruction advisory since 2003
- Landmark structured deals with ARCs which make the projects immensely viable
- Our first funding advisory was for a company in a remote location in South in 1991when it was having few crores as its top-line; presently the company has touched INR 1500 Cr turnover with largest capacity in its core product in South India. We pride in our continued relationship with the company till date.
- SR facilitated multiple rounds of funding to an auto-component manufacturing company supplying OEM and aftermarket components to all major vehicle manufacturers in India. It is a 45 year old company running successfully, looking forward to its milestone 50th year.
- SR successfully delivered the financial model for a green power company in Texas for their proposed solar farm which was the largest in USA at that time (2010).
- SR provided advisory to a wind mill manufacturing company, set up a line of credit from a NBFC and generated many orders for them.
- SR has remained innovative in its funding advisory in these 3 decades, executing tax credit investments and structured leasing for numerous clients.
- SR pioneered private equity investment in South India in early 90’s, raising capital for quite a few companies including a pharma company which presently has market capitalisation of INR 25000 Cr.
- During 2000-2005, a leading financial institution assigned quite a few companies for restructuring to SR and SR had successfully structured a scheme which was implemented with inbuilt waivers, sacrifices, infusion of additional debt and capital.
- A printing and publishing company having a liability of INR 37 Cr was knocking at the doors of DRT and High Court, pleading to direct their bank to restructure the loan account. Their attorney firm advised the company to avail the services of SR to bring resolution. SR negotiated OTS with the bank and got it funded by a Special Situation Fund. Interestingly, for a group company, we got a term-sheet from an Equity Fund for a large sum of money and we advised them not to accept the offer, because of the adverse terms which would have made them exit their own company that was producing good profit consistently.
- A leading chemical company retained us for CDR advisory and the company has successfully utilized the CDR scheme to come out of their financial-stress, performed credibly and got out of CDR also after paying recompense.
- A first-of-its-kind fund raising in South India in early 90’s, taking the market by surprise at that time. A paper manufacturing company was planning to raise capital through Public Issue. It was having a very nominal equity base and the public issue was planned with a premium of INR 5 per share of INR 10. It approached SR and SR advised Private Equity Placement instead of Public Issue, which was unheard-of at that time to many people. SR projected a possible premium of INR 110 per share, got the placement subscribed at a premium of INR 145 per share and the proceeds were 6 times the anticipated mobilisation.
This led to investors scrambling for more share in SR’s next issue, which was for a textile company.
- A real estate developer with ongoing projects at 10 locations spread across South India, facing downturn in real estate market and having the challenge of paying back a large project loan within a stipulated time, approached SR. Within the short-time given, SR raised funding from a NBFC to settle the project loan. Their existing high-cost loans were replaced with low-cost loans and additionally funds were raised for their projects by SR.
This amply proves the possibility of out-of-box solution and SR’s fund raising ability even in a tight market with innovative instruments. Also, shows the potential and willing participation of various wings of institutional financing.
- A chemical company had total dues of INR 65 Cr with two banks. SR Corporate Advisory represented the company, advised an ARC to take the loan account when it was auctioned to ARCs. It was taken on cash(15%) + security-receipt(85%) basis. Demand Notice amount was INR 46 Cr and the Assignment amount was INR 34 Cr. We negotiated a restructuring scheme with the ARC, whereby the company would repay INR 46 Cr in total including interest, over a period of 7 years, with 2 year holiday period.
This case-study is a classic example of a bank getting back the total demand amount, the company which was on the verge of closure reviving back its viable-performance, an ARC delivering its designated role of asset reconstruction and an advisory firm, SR Financial Consultants, acting as the facilitator.
- An engineering company had dues of INR 28 Cr with a PSU bank. It requested us to get funding for their OTS. We got an investor to fund the OTS of INR 21 Cr, but the promoter didn’t bring in the down-payment by the due date and the bank auctioned the account as part of a portfolio to ARCs. It was taken on cash(15%) + security-receipt(85%) basis. For our client, we negotiated a restructuring scheme with the ARC, whereby the company would be paying INR 23 Cr over a period of 7 years, with 2 year holiday period, at an interest rate of 11%.
This case-study shows the bank realizing its total dues and also additional return, the company got a cash-flow supported revival scheme, instead of asset-stripping to fund the OTS, and got back to its economic-activity, an ARC’s proactive support for revival of the company and an advisory firm acting effectively to resolve this real complex scenario, which would be difficult to be replicated by any other stake-holder, as this would be beyond their mandate and expertise.
- A major retail company had total dues of INR 95 Cr with a private sector bank. Due to the recession, got in to cash-flow challenges, got an OTS for INR 60 Cr. As the company could not raise the down-payment and also having additional issue of security value being inadequate, the bank requested us to resolve the situation. We advised the promoter to take a strategic-partner and bring in the down-payment of INR 15 Cr for the OTS from the strategic partner and also convinced the promoter to bring in additional security. With the additional security coverage, the OTS was funded by a special situation fund.
This case-study is an example of resolution, with the advisory firm bringing in the necessary structured solution to the table, convincing the company for the schematics, also got an additional player for the operational support and then got a SSF involved.