Kolkata-based Microsec Financial Services has filed its DRHP with SEBI on February 6th, 2008 to enter the capital market with an IPO of equity shares of a face value of Rs 10 each at a price to be decided through a book building process. The company plans to raise Rs 160 crore from the issue.
The shares are proposed to be listed on BSE & NSE. The BRLM to the issue is SBI Capital Markets.
The company intends to use the proceeds from the issue for part funding its financing activity of Rs 110 crore; augmenting long term working capital requirement of Rs 24 crore; setting up additional offices and acquisition of office infrastructures of Rs 12.30 crore and enhancing of existing technological capacity of Rs 3 crore.
Microsec Financial Services is a well-diversified financial services company, providing an array of services including investment banking, retail brokerage, wealth management, insurance broking and financing services to its clients. Further, the company is in the process of launching institutional equities and portfolio management services. The company operates from around 176 business-locations in 49 cities / towns. The company intends to establish another 50 branches and strengthen the office infrastructure in Mumbai.
The Microsec Group operates through Microsec Financial Services (MFSL) and its subsidiaries. MFSL, the holding company of all the subsidiaries, is an NBFC, registered with the RBI and its main business includes giving loans against shares and rendering advisory services to clients. The company's subsidiaries are Microsec Capital (MCap), Microsec Resources Private (MRPL), MIL Technologies, Microsec Insurance Brokers and Microsec Commerze.
MCap and MRPL are 100% subsidiaries of MFSL
The company's investment banking business is operated through MCap, which provides a broad range of advisory services, including in equity capital markets transactions, mergers and acquisitions, business restructuring, debt-syndication, structured finance, private equity and other business consultancy. As of January 18, 2008, the investment banking division has managed 12 equity capital market offerings aggregating to Rs. 440.8 crore. The company's gross investment banking revenue from this activity in the 6 months period ended September 30, 2007, is . Rs 1.98 crore
The company's retail broking business primarily covers secondary market equity broking. As of January 18, 2008, it had more than 12,000 clients. The company' s equity brokerage revenue in the 6 months period ended September 30, 2007 was Rs. 4.70 crore.
For the year ended 31st March. 2007, the total income of the company was Rs 18.59 crore and net profit was Rs 7.64 crore as compared with an income of Rs 12.57 crore and net profit of Rs 4.24 crore FY06. For 6 months ended 30.9.07, the company's income was Rs 18.34 crore and net profit was Rs 9.45 crore.