Financial Daily from THE HINDU group of publications
Friday, Jun 17, 2005
Financial Daily from THE HINDU group of publications Friday, Jun 17, 2005 |
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Markets
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Public Offer Shrachi Securities plans public issue; to change name with `infrastructure' tag Our Bureau
Kolkata , June 16 SHRACHI Securities Ltd (SSL), which chiefly finances commercial vehicles, has proposed to expand its infrastructure funding operations. SSL has lined up an equity issue to bolster its paid-up capital, which currently stands at Rs 8.50 crore. The offer, said Mr Ravi Todi, MD, will be commensurate with the enlarged business base that the company now has. The company has also decided to alter its name to Shrachi Infrastructure Finance to suit its changing business profile. It has sought an approval from the Registrar of Companies in this regard. SSL promoters are willing to marginally reduce their holding (now at 55 per cent) to facilitate the public offer. The size of the issue and other key details, however, are yet to be finalised. The SSL stock is listed on the BSE and the CSE. "Construction equipment financing is coming up in a big way in India. This is a market that we propose to cater to in a more focused manner," Mr Todi told newspersons. Funding of construction equipment, which now accounts for about four per cent of SSL's portfolio, will be scaled up to around 10 per cent, he added. Non-fund based activities are also expected to emerge as bigger businesses for the company, thanks to SSL's involvement in distribution of insurance and select personal loans. SSL, which announced its results for 2004-05 on Thursday, has posted a 79 per cent increase in post-tax profit to Rs 5.4 crore (up from Rs 3.01 crore in 2003-04). Its total income stood at Rs 25.39 crore (against Rs 19.66 crore in the previous year) and pre-tax profit at Rs 7.21 crore (Rs 3.63 crore). The company recorded a 70 per cent-plus increase in disbursements of its core financing products - CVs, multi-utility vehicles, cars and construction equipment. Total disbursements stood at Rs 540 crore, up from Rs 302 crore logged in 2003-04. SSL has proposed to flag off new offices in the northern and western markets. "These are by far the most potential areas. We plan to have at least ten more branches in the days ahead", he said.
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