Financial Daily from THE HINDU group of publications
Friday, Aug 06, 2004
Financial Daily from THE HINDU group of publications Friday, Aug 06, 2004 |
||
|
|
||
|
Markets
-
IPOs Indiabulls eyes portfolio takeouts post-IPO Our Bureau
Bangalore , Aug. 5 Indiabulls Financial Services Ltd plans to foray into "traditional financing" through retail-portfolio takeouts from non-banking finance companies after its initial share sale, its Director, Mr Gagan Banga, said. The company plans to sell 2.71 crore equity shares in its maiden initial public offer (IPO) to raise funds to propel expansion. The time of the issue will be decided in the near future, Mr Banga said. "Post-IPO, we will like to grow both organically and inorganically as we see consolidation is bound to happen in this industry," Mr Banga said. Indiabulls ranks among the top five retail brokers in the country and according to estimates, it is second only to ICICI. Indiabulls also plans to eye distribution companies of other financial services firms to grow its business. "Two very attractive offers from two retail brokerages" were on the table, Mr Banga said. However, the diversified financial house that offers commodities to fixed income trading ruled out foray into forex market. "We do not understand that business," Mr Banga said, adding that shrinking margins in forex trading were not conducive for entering into that segment. Hedge-fund Farallon Capital Partners LP, which bought 15 per cent stake in Indiabulls for Rs 53 crore recently, will continue to stay invested in the company post-IPO. Other institutional investors such as Transatlantic Corp, Infinity Technologies Trustee Pvt Ltd and LN Mittal's India Fund hold close to another 20 per cent of the company. "They will all subscribe to the issue," Mr Banga said, adding that "we aim to make our stock liquid and available to retail investors". According to SEBI guidelines, 25 per cent of the shares for sale have to be allotted to retail investors. The company expects to report net profit over Rs 40 crore in the current fiscal, up from Rs 19.35 crore a year ago. Indiabulls reported revenue of Rs. 71.95 crore in the financial year 2003-04.
More Stories on : IPOs | Financial Services
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2004, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|