The Hindu Business Line : Transwarranty Finance IPO opens on Jan 23

Transwarranty Finance Ltd, a professionally managed financial services and investment banking company, is entering the capital market next week to raise funds for increasing the scale of operations and geographic expansion.

This expansion entails opening of regional offices, making strategic investments or acquisition of companies engaged in the business of financial services and/or banking, said Managing Director Mr Kumar Nair.

The IPO will open on January 23 and close on February 2. The price band will be between Rs 48 and Rs 55 and the company proposes to list the equity shares on the BSE and NSE, he told newspersons.

IDBI Capital Market Services Ltd is the sole book running lead manager to the IPO.

The company proposes to offer 6,000,000 equity shares of Rs 10 each for cash at a premium.

The issue comprises net issue of 5,900,000 equity shares to the public and a reservation of 1,00,000 shares for eligible employees. The issue would constitute 42.86 per cent of the post-issue paid-up capital of the company.

The issue is being made through 100 per cent book building process wherein at least 50 per cent of the net issue will be allocated on a proportionate basis to qualified institutional bidders (QIBs). Five per cent of the QIB portion will be available for allocation on a proportionate basis to MFs only, 15 per cent of the Net Issue will go on a proportionate basis to non-institutional bidders and 35 per cent to retail individual bidders, he said.

Mr Nair added that while the Indian economy has been growing at eight per cent over the last three years, its financial sector has been outgrowing at an accelerating pace since the last eight quarters.

The financial sector's contribution to the GDP is now 54 per cent. India's corporate sector has mobilised Rs 30,000 crore in three years, which it could not do in 15 previous years put together.

India's 30 mutual fund houses now manage Rs 3 lakh crore.

All these necessitated strong and competent financial services, which, despite competition, are bound to grow further.

The fully integrated, full-service providing company engaged in "financial engineering" is an RBI-registered NBFC with business in trade and corporate financing and investment banking activities.

It also runs a 50-seat financial services BPO for Citi Financial Consumer Finance India Ltd for sourcing of personal loans for them.

It designs structured finance products by using financial models and structures and executes these for leading companies in India, including the Godrej, Tata and Mahindra Groups and a number of mid-cap and large-cap companies.

Transwaranty's revenue grew by 57 per cent CAGR over the last three years.

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