India Infoline IPO

India Infoline IPO

India Infoline, a leading retail investment advisory and intermediary company, has fixed a price band between Rs 70 and Rs 80 for its forthcoming public issue.

The company is coming out with public issue of 1.18 crore shares with a face value of Rs 10 through the book building route.

The issue is slated to open on April 21 and close on April 27, the statement issued by company said.

India Infoline carries out the business of broking, distribution of personal finance products including mutual funds, fixed deposits, government bonds etc., corporate agency of life insurance and commodities broking through its separate wholly owned subsidiaries.

Retail investment advisory and intermediary company India Infoline said that it will double the number of its branches to 150 within the next 18 months.

"The proceeds of the Initial Public Offering (IPO) which are expected to be Rs 83 crore to Rs 95 crore, will be used for doubling the number of branches to 150 within the next 18 months.

India Infoline’s initial public offering ((IPO) proceeds would be equally distributed among its five subsidiaries, senior company officials said.

The five subsidiaries are an insurance broking company, a mutual fund and other financial services distribution company, a commodities trading company, an online equity broking company and a non-banking finance company.

While its e-broking arm, 5paise.com, generates around 60 per cent of the revenues of the group, other arms are also being built up.

Director R Venkatraman said the e-broking site does around Rs 250 crore of business per day, which comes from a largely retail customer base of 18,000 subscribers. He, however, refused to divulge the profitability of the online operations.

Merchant bankers said a significant portion of the proceeds would also go towards providing margin funding to customers.

The company plans to raise Rs 83-95 crore with the shares on offer at a price band of Rs 70-80 a share. India Infoline as a group reported an income of Rs 47.50 crore for the nine months ending on December 31, 2004, while for fiscal 2004 the company reported a net profit of Rs 7.50 crore.

Part of the proceeds will also go towards doubling its branch network to 150 in the next 18 months. Since it operates out of rented premises which are scattered all over Mumbai city, the company is planning to set up a new centralised office in the city.

The online broking site will also offer the facility of applying IPOs online, Venkatraman said. “We will also launch the facility of applying IPOs online next month,” he added.

The issue is opening on April 21 and closes on April 27. Enam Financial Consultants are the sole book running lead managers to the issue.

India Infoline IPO oversubscribed 7.34 times

The Initial Public Offering (IPO) of India Infoline, one of the leading online broking and financial advisory services companies in India, has got an overwhelming response with the offer getting subscribed by 7.34 times.

The company received bids for 85.74 million shares as against the 11.88 million shares on offer in the issue. Of the total applications, almost 99.99 per cent were received at the upper end of the price band.

Keeping in mind the interests of the retail investor who have participated enthusiastically in the issue and the prevalent market conditions, the management has decided to price the issue at Rs 76.

Speaking on the pricing decision, Nirmal Jain, chairman and managing director, India Infoline Ltd, said, "We would like to have a very positive start to our relationship with the retail investors who have expressed confidence in our business model and enthusiastically participated in the issue."

Promoted by Nirmal Jain and R Venkataraman, India Infoline has a retail branch network of 73 branches at 36 locations across India and proposes to set up an additional 77 branches in 50 cities across India to have a network of 150 branches to further strengthen its geographic reach.

Hello TaTrader,
An excellent information of IPO of Infoline really gives the overall view of the company.
Thanks and keep it up
Nksagar.

If we go into a BEAR market I don't think this script will do well considering the drop in trading turnover and also their profits.

During bull markets all securities compaies to very well. However in bear markets things are totally different!