Motilal Oswal plans insurance distribution biz
Motilal Oswal Financial Services plans to begin distributing insurance products in another 6-7 months.
By PTI |
NEW DELHI: Brokerage firm Motilal Oswal Financial Services plans to begin distributing insurance products in another 6-7 months to increase fee-based income.
"We are planning distribution of third-party insurance products to expand our fee-based portfolio," Motilal Oswal Financial Services Chairman Motilal Oswal said.
The company is yet to forge alliance with insurers, he said adding the distribution of insurance products is likely to be started by the end of March 2008.
The company, which plans to raise about Rs 240 crore through an initial public offer (IPO) that opens for tomorrow, is already into mutual fund distribution. It is planning to ramp up distribution network as well as strategic alliances with more fund houses.
The other fee-based revenue generating businesses of the company include portfolio management services (PMS), venture
capital investment, advisory business and investment banking.
As on March 31, 2007, the assets under management under PMS stood at around Rs 508 crore.
Oswal said the company also plans to increase its clientele through strategic tie-up with banks by providing online brokerage service to the bank customers. This will help increase the the transaction-based income, he said.
The company has already tied-up with the country's largest lender State Bank of India for this and is likely to partner with Oriental Bank of Commerce as well.
"We expect to enter into similar strategic alliances in the future to cater to even wider customers base," he said.
Last year, the company acquired three brokerage firms to increase presence in Kerala, Uttar Pradesh and Karnataka.
"We are planning distribution of third-party insurance products to expand our fee-based portfolio," Motilal Oswal Financial Services Chairman Motilal Oswal said.
The company is yet to forge alliance with insurers, he said adding the distribution of insurance products is likely to be started by the end of March 2008.
The company, which plans to raise about Rs 240 crore through an initial public offer (IPO) that opens for tomorrow, is already into mutual fund distribution. It is planning to ramp up distribution network as well as strategic alliances with more fund houses.
The other fee-based revenue generating businesses of the company include portfolio management services (PMS), venture
capital investment, advisory business and investment banking.
As on March 31, 2007, the assets under management under PMS stood at around Rs 508 crore.
Oswal said the company also plans to increase its clientele through strategic tie-up with banks by providing online brokerage service to the bank customers. This will help increase the the transaction-based income, he said.
The company has already tied-up with the country's largest lender State Bank of India for this and is likely to partner with Oriental Bank of Commerce as well.
"We expect to enter into similar strategic alliances in the future to cater to even wider customers base," he said.
Last year, the company acquired three brokerage firms to increase presence in Kerala, Uttar Pradesh and Karnataka.
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