IBFL has following operating businesses ..
1. Securities
In this biz, IBFL is among the largest domestic players. This biz is closely related to stock/commodity markets. Assuming Indian market will be highly voletile market for times to come, I assume profits will only florish from here. It is good, strong and fundamental business of the group. I assume, they would like to own majority of this, as this is cash cow for all other forays. So talk of sale to ADA group will definately be rumor. May be times to come, they will opt for stategic foreign investor like goldman, waterhouse etc. But they would like to control this as long as they can. This is strong, growing biz. Expect exponential rise in EPS (as it has been so far).
2. Financial Services
I like this most. This consists of consumer loans, mortgages and credit card. There is good future for this biz anf like securities, this will grow exponentially. By no way they are tiny players in this sector. Last quater, they distributed loans worth 500 Cr. Assuming they have just 33 offices, this is not a bad start. Assuming they have 200 offices by 2008 and with some extrapolation, we can say by 2008 they will distribute loans worth 3000 Cr per quater (this is a approx figure). They have advantage over PSU banks as they have dedicated offices only for loans.
All along, I used to think that this biz is operational from same (securities) offices, but I was wrong. They have different offices for securies, consumer and morgages biz, as profile of visiters are different.
Recently IBFL, told that they are now thinking of resctrucuring this biz aswell. They said it may be demerger but nothing is decided, we are in thinking process.
It is very good business to own. I have a strong feeling that this will also be demergerd because they have direct investors in this operating companies (unlike securities biz). Guys will put money in operating business when they think of hiving this at later stage.
3. Real estate
Nothing to say really. All is publically known by now. It is free gift for ppl how picked IBFL at around 190 at as recent as May/June. Those ppl are wealthy by their karma.
4. Oil&Gas
They had bid for CMB 3. Very few ppl know about this. But one can see DGH website and cross check. But sad part is that they were not allocated any block. So I assume investment in this biz is loss unless something big comes. As LNM is sitting for IBFL, there is quite a changes that something big will come under this biz aswell.
Now come to biggest oppertunity. That is owning a Bank. IBFL promotors have intention to own a bank post 2009. Bid for UWB was a small step under this. I am sure one day, they will buy a bank from it's consumer finance biz. If that happens, it will be biggest move by promotors of IBFL.