The Hindu Business Line : Peninsular Capital in expansion mode

THE Kochi-based, Peninsular Capital Market Ltd (PCML), a leading investment and financial services plans to double customer base to one lakh from 50,000 and up its trading branches to 500 from the existing 240 across the country in the next 16 months.

The PCML Chairman, Mr T.S. Anantharaman, explained the expansion plans to newspersons here on Saturday after opening the second trading terminal in Hyderabad and 21st in Andhra Pradesh. It proposes to set up another 50 trading branches in the State before March 2007, he said.

According to the PCML Managing Director, Mr Akshay Agarwal, the company has decided to move from a franchisee-supported organisation towards a hybrid system by adding to its list both business associates and direct branches. Of the proposed network of 500 trading branches by March 2007, the company plans to have at least 100 directly owned branches, he said.

Mr Anantharaman said the company has recently obtained approval from the Securities and Exchange Board of India for offering portfolio management services.

The company has set a target of managing around Rs 100 crore of funds under the PMS scheme by March 2007.

To focus on commodity: Having obtained membership of the Dubai Gold and Commodities Exchange recently, the company proposes to focus on investors in West Asia for its PMS operations.

According to Mr Anantharaman, the trading volumes of Indian commodities market are expected to surpass those of the capital market in the near future. The company is planning to increase its presence in the commodity markets by setting up of branches in agricultural regions of the country. PCML currently has membership in three of the national commodity exchanges.

To support customers to have access to funds to augment their trade volumes, it is aiming to introduce margin-funding facility in a big manner. The company is bullish on opportunities in the area of margin funding, he said.

IPO route: To raise funds required for meeting its aggressive expansion plans, the company proposes to tap the markets. As a part of this, PCML proposes to initially go in for private placement of equity for raising around Rs 20 crore in the next couple of months.

The company proposes to mobilise around Rs 200 crore through initial public offering sometime next fiscal, Mr Anantharaman said.

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