Understand India's IPO Market Insight in Q4 by EY India

1. EMEIA —India market insight IPO activities are expected to gain momentum in 2019 “IPO activities in India have dropped significantly as compared to Q3 of 2018 on account of market corrections and various other domestic and global factors. Companies are adopting a “wait and watch" policy and at the same time preparing and filing DRHP with the regulator, so that when the timing is right, they can launch their IPOs immediately” Sandip Khetan Partner and National Leader Financial Accounting Advisory Services (FAAS), EY India Global IPO trends: Q4 2018 | Page 1

2. EMEIA —India IPO market insight Highlights from the market Markets Activity Q4 2018 ► Indian Stock exchanges (BSE and NSE including SMEs) ranked second in the world In terms of number of IPOs for the period from J anuary 2018 to November 2018. Change on prior year quarter Change on prior year Sectors by highest number of IPOs IPOs largest by proceeds Bombay & National - Main Market IPO pricing and performance YTD 2018 161 IPOs $5.52b Proceeds $2.3m median deal size Q4 2018 10 IPOs $0.30b Proceeds $2.2m median deal size ► In the main markets (i.e., BSE and NSE), there were only two IPOs in Q4 2018 versus nine IPOs and three IPOs in Q4 2017 and Q3 2018 respectively. This represents a significant drop of 78% and 33% as compared to Q4 2017 and Q3 2018 respectively. 75% 6% Industrials 4 IPOs $57.26m 53% 95% ► Similar trend was witnessed in the SME markets too. There were eight IPOs in Q4 2018 versus 31 IPOs and 42 IPOs in Q4 2017 and Q3 2018 respectively, representing a significant drop of 74% and 81% as compared to Q4 2017 and Q3 2018 respectively. Aavas Financiers Limited $234.86m Finance 5% First-day average return 33% Retail 2 IPOs $ 3.5m Main markets SME markets -8.38% Change on prior year quarter Change on prior year quarter ► The drop in IPOs may be attributed to reasons like significant corrections in the stock markets in mid cap and small cap stocks. Further the amount of volatility has increased due to uncertainties around global growth compounded by the ongoing US/China trade wars. Q4 2018 2 IPOs $0.28b Proceeds $140.86m median deal size Q4 2018 8 IPOs $0.02b Proceeds $1.75m median deal size Share price development since IPO 74% 78% Garden Reach Shipbuilders & Engineers Ltd $46.95m Industrials ► In addition, there are a number of macro-economic factors which are contributing uncertainties such as, liquidity crises among non-bank lenders triggered by defaults done by a leading infrastructure finance company in India and currency volatilities (depreciation of rupee). 92% 95% -11.17% 20% 25% + or –indicates change compared to offer price at IPO ► Industrial sector (construction and engineering) is the most active sector in terms of number of IPOs, whereas financial sector is at the top in terms of issue proceeds. Marine Electricals (India) Limited $5.1m Retail Bombay & National - Main Market Bombay & National Stock Exchange - SME Market Equity index 160 $700 40 $12,000 ► During 2018 there were no significant Indian companies that got listed on overseas stock exchanges. 140 $600 $10,000 120 30 $500 $8,000 100 $400 20 $6,000 80 ► Companies have adopted “wait and watch” policy, since companies are continuing to file the DRHPs with the regulator, with an intention that when the timing is right, companies can launch their IPOs with minimal time and effort. $300 60 $4,000 BSE SENSEX +6.9% India 10 $200 40 $2,000 $100 20 0 $- 0 $0 2014 2015 2016 2017 YTD 18 2014 2015 2016 2017 YTD 18 Number of IPOs Proceeds US$m Number of IPOs Proceeds US$m All amounts in table are in US$ All amounts in table are in US$. + or –indicates change since 1 J anuary 2018 All values are US$ unless otherwise noted. | Q4 2018 and YTD 2018 refer to the fourth quarter of 2018 and cover priced IPOs from 1 J anuary to 30 November. Global IPO trends: Q4 2018 | Page 2

3. Ernst & Young Associates LLP EY | Assurance | Tax | Transactions | Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. Sandip Khetan Partner and National Leader Financial Accounting Advisory Services (FAAS), EY India sandip.khetan@in.ey.com EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. J igar Parikh Partner Financial Accounting Advisory Services (FAAS), EY India jigar.parikh@in.ey.com Ernst & Young Associates LLP is one of the Indian client serving member firms of EYGM Limited. For more information about our organization, please visit www.ey.com/in. Veenit Surana Director Financial Accounting Advisory Services (FAAS), EY India veenit.surana@in.ey.com Ernst & Young Associates LLP is a Limited Liability Partnership, registered under the Limited Liability Partnership Act, 2008 in India, having its registered office at 22 CamacStreet, 3rd Floor, Block C, Kolkata –700016 © 2018 Ernst & Young Associates LLP. Published in India. All Rights Reserved. EYIN1812-013 This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Neither EYGM Limited nor any other member of the global Ernst & Young organization can accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication. On any specific matter, reference should be made to the appropriate advisor. All values are US$ unless otherwise noted. | Q4 2018 and YTD 2018 refer to the fourth quarter of 2018 and cover priced IPOs from 1 J anuary to 30 November. Global IPO trends: Q4 2018 | Page 3