India Infoline

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   CMP: Rs 1119
Market Cap: Rs. 5975 crs
PBT FY08: Rs 1.8 - 2 bn
Revenues FY08: Rs 7-7.5 bn
EPS FY07: Rs 12.85
ROE FY07: 18.26%
Market share: 3.3% 
Avg. daily turnover: Rs 2100 crs
Branches: 596 in 345 cities
Fully diluted equity after accounting for the warrants that are going to be issued in January 2009 and ESOPS will be around Rs66 Crores and plus incremental new ESOP scheme . As on date equity is Rs53 crores. 
Revenue contribution from various businesses:
Brokerage : 56%
Insurance : 15%
Commodities, Merchant banking and Mutual funds : 29%

Chairman: Nirmal Jain - IIM-A Alumnus

Retail broking:
India Infoline has around 3 lakh custumers. It has a tie-up with Bank of Baroda for e-broking.

Institutional broking: 
India Infoline has roped in Bharat Parajia, director of sales at CLSA in Singapore, H Nemkumar, CLSA's country head for India, Aniruddha Dange, CLSA's head of research in India, and Vasudev Jagannath, CLSA's head of sales in India. While Parajia will join as head of institutional sales at India Infoline, Dange will be head of research and Nemkumar head of investment banking.  

Each one of them is bringing in more than 10 years of experience with a top institutional brokerage in Asia. The CLSA foursome will also pick up stakes in India Infoline through the preferential allotment route. Their collective stake would add up to around 15%. Parajia already holds a 2.88% stake in India Infoline. He will subscribe to 25 lakh equity warrants at Rs 440 each.Nemkumar will pick up another 25 lakh, while Jagannath and Aniruddha Dange will subscribe to 20 lakh warrants each. The preferential allotment includes the four men buying 90 lakh equity warrants at a price of Rs 440 each, of which 10% will be paid up front as their sign-on bonus. The remaining will be payable at the end of eighteen months when the warrants will be convertible into shares.That is, all these guys will have to cough up about Rs 360 crore to convert their warrants into shares. Currently, the company's institutional equities team has 35 people, including research analysts and dealers. 

Consumer Finance:
During the quarter, it managed a book size of Rs 25 crore and has suffered a loss of Rs 5.5 crore. It expects to break even in 2-3 quarters. NIM of 6-8% on personal loans and 3-4% on home refinancing. It is looking at a Rs 200 crore private-equity funding for its consumer finance subsidiary. It intends to leverage its extensive branch network to expand its consumer finance division to tier-II and tier-III cities in the coming quarters. India Infoline is going slow as it has just started this business with a robust risk management system. The company has roped in experts from Citi Financial and other banks. 

Edited by basant - 28/Nov/2007 at 8:26am