Identification of Hidden/
Embedded Derivatives
Estimation of
Expected Credit Losses
Identification of
Credit Risk
Calculation of Company
Specific Risk Premium
Separation of Market
Risk & Credit Risk
Dissecting Debt &
Equity Components
Access to Global
Interest Rate Curves
Scenario Based Modelling for
confidence level in recovery rate
Experience of Valuing
Corporate Bonds worth
>$1,300 Million
Building Credit Risk
Matrix compared to
Global Peers

Issue Of Debentures

Lifecycle

The issue of Debentures is done as per Rule 2 of Companies (Acceptance of Deposit) Rules, 2014. The specific type of Debenture issues include – Compulsorily Redeemable, Compulsorily Convertible, Optionally Convertible, Irredeemable, Allied Shareholders Agreements, and Secured Debentures.

Convertible Instruments are a blend of equity and debt components. Typically, such investment is made to avoid short term losses and participate in long term ownership. Its nature — optional or compulsory – adds complexity. Often, side agreements between promoters of company and Investors impact valuation and classification of debenture agreements. Key valuation challenges include valuation of American put option of conversion, estimation of the share price of a private company, dissecting debt and equity component.

Issue Of Debentures

Lifecycle

The issue of Debentures is done as per Rule 2 of Companies (Acceptance of Deposit) Rules, 2014. The specific type of Debenture issues include – Compulsorily Redeemable, Compulsorily Convertible, Optionally Convertible, Irredeemable, Allied Shareholders Agreements, and Secured Debentures.

Convertible Instruments are a blend of equity and debt components. Typically, such investment is made to avoid short term losses and participate in long term ownership. Its nature — optional or compulsory – adds complexity. Often, side agreements between promoters of company and Investors impact valuation and classification of debenture agreements. Key valuation challenges include valuation of American put option of conversion, estimation of the share price of a private company, dissecting debt and equity component.

Fixed Income
Securities

Characteristics

Have more questions?

 

Identification of hidden or embedded derivatives

Identification of Credit Risk

Valuation Complexities

Calculation of Company Specific Risk Premium

Separation of Market Risk & Credit Risk

Estimation of Expected Credit Loss

Valuation Complexities

High growth potential

No revenues and operating losses

Uncertain call future potential

Primary asset = IP

Expected ESOP

Negative bottom line

Private entity (non-comparable
listed entities)

How can we help you?

Building Credit Risk Matrix in comparison
with global peers

Scenario Based Modelling for confidence
level in recovery rate

Access to Global Interest Curves

Experience of valuing Corporate Bonds
worth $1300 million (INR 10,000 Crore)

Dissecting Debt & Equity Components

How can we help you?

Building Credit Risk Matrix in comparison with global peers

Access to Global Interest Curves

Dissecting Debt & Equity Components

Scenario Based Modelling for confidence level in recovery rate

Experience of valuing Corporate Bonds worth $1300 million (INR 10,000 Crore)

error: Content is protected !!
Scroll to Top