The Hindu Business Line : GTF plans Rs 300-cr IPO

Global Trade Finance Ltd plans an initial public offering of around Rs 300 crore by later this year or early next year. The non-banking financial company is a joint venture between Exim Bank, FIM Bank (Malta), IFC (Washington) and Bank of Maharashtra.

"We have decided in principle to go in for an equity issue. But now we have to wait and watch for the right time. The time window we are looking at is between November 2006 and January 2007," said Mr Arvind Sonmale, Managing Director and CEO, GTF.

GTF has reported a 118 per cent growth in net profit in the financial year ending March 31, 2006, at Rs 13.33 crore, compared to Rs 6.12 crore in the previous year.

Company's performance

The company recorded a 95 per cent rise in factored assets to Rs 799 crore (Rs 410.7 crore). It has also maintained the 12 per cent capital adequacy ratio.

The company plans to open offices at Ahmedabad and Kolkata. It is targeting a 50 per cent rise in net profit for the next financial year and plans to raise Rs 20 crore by next month through long-term bonds.

"The rise in profit was on account of high turnover and increasing operating levels. Moreover, the company used the capital effectively and there were no non-performing assets," said Mr Sonmale.

GTF provides trade finance requirements to SMEs. The non-banking finance company registered a 47 per cent rise in turnover, which was at Rs 2,800 crore against Rs 1,900 crore. The company has also registered a 75 per cent growth in turnover during the first quarter ending June 30, 2006.