Brokerage firm Inventure Growth & Securities to invest Rs 30 cr in expansion; lists 2 pc higher

MUMBAI: Brokerage firm Inventure Growth & Securities, which listed with a premium of nearly 2 per cent at Rs 119 on Bombay Stock Exchange today, said it will invest Rs 30 crore in expanding its subsidiary Inventure Finance.

"We are planning to utilise Rs 30 crore in expanding our non banking finance company (NBFC)- Inventure Finance, about Rs 20 crore for augmenting long term capital requirements and the rest for general corporate purposes," Inventure Growth & Securities ( IGSL) CMD Nagji K Rita told reporters after the listing here on BSE.

The company had raised about Rs 82 crore through an initial share sale last month.

IGSL was listed at Rs 119 on BSE, reflecting a gain of 1.70 per cent against the issue price of Rs 117 per share.

Later in afternoon trade, the shares were quoted at Rs 121.85, a gain of 4.14 per cent over the issue price.

Similarly, on the NSE the stock debuted at Rs 117 and within minutes touched an early high of Rs 124. Later in afternoon trade, the stock was trading 4.57 per cent hogher at Rs 122.35.

The company, which mostly operates in Maharashtra, Gujarat and Rajasthan, is planning pan-Indian opertaions through franchise model and offer new services like merchant banking and gold loans soon, he said.

"We are now operating from 233 locations on franchise basis, which will go up by 30-40 per cent in next two years. We will also offer new services like merchant banking and gold loans soon," he said, adding that the company will also expand its arbitrage business.

On the back of this expansion, the company's profit is expected to go up by up to 60 per cent in FY12 from Rs 6.5 crore in FY11, Rita said.

The book size is expected to increase to Rs 100 crore in 2-3 months from the current book size of Rs 60 crore, he added.

IGSL has direct interests in equity, debt and currency futures broking, depository activities, PMS and other activities like commodity broking, non-banking financial services, wealth management and sale of insurance products are provided through its subsidiaries.