Dhanlaxmi to buy 15% in broking co for 13 cr

Our Bureau MUMBAI DHANLAXMI Bank will invest . 13 crore to buy a 15% stake in online broking company Destimoney Securities even as its quarterly profits tumbled on investments in people and technology. The bank’s board on Thursday approved the investment, which will lead to purchase of fresh shares in the firm that is partly owned by PE firm New Silk Route founded by former Mckinsey head Rajat Gupta. The investment would help the brokerage improve its financial muscle and taking its enterprise value to . 80 crore. The deal is subject to regulatory clearances. “We are ready to pump in more funds in Destimoney, if needed,” Dhanlaxmi Bank chief financial officer Bipin Kabra told ET. “But online broking firms do not need much capital.” Average transactions in the company are around . 180 crore through its 27,000 clients. It is a member of NSE and BSE and has a network of 14 branches and more than 100 franchisees spreading across 50 cities. “This is a strategic investment and is part of our plans to augment growth, broaden our product portfolio and provide investmentsavvy customers cost-effective financial solutions,” said the CFO of Dhanlaxmi Bank, which reported a 75% fall in net profit at . 1.6 crore for the second quarter ending September 30, 2010. The bank management attributed the fall to its investment in people, products, processes, technology and infrastructure.

Destimoney eyes second strategic partner
Our Bureau MUMBAI DESTIMONEY, a financial services company owned by private equity player New Silk Route, is looking for a second strategic partner. This is even as the firm is looking at acquisitions or partnerships in the stock broking and the retail asset space. Currently, New Silk Route holds a 80% stake in the company with the remaining stake being held by individual investors and the management team. Destimoney was earlier known as Dawnay Day. In 2008, New Silk Route acquired the company after Dawnay Day’s parent firm in the UK went into receivership. The current investors bought out Dawnay Day and the previous management team. According to Vivek Vig, MD and Group CEO, Desitmoney, “We might look at a second shareholder who is a strategic player. We are looking at acquisitions or partnerships in the broking, distribution and in the asset space. We are looking at contribution of brand, knowledge and funds from the partner.” Investors have currently pumped in Rs 250 crore into the company. In the past few months, the company has rolled out over 100 branches to over 133

commerce.branches in 70 locations. power and public enterprises minister formally inaugurated the Margherita branch. It also plans to get into the asset reconstruction space for retail loans.95 per cent per annum what for similar issues have been offered to AAA rated companies. which was organised recently. The first issue opened on February 19 and closed on February 23. It has kicked off a soft launch of gold loans in six centres across the country and is also looking to offer secured loans to individuals. The fund will be utilised towards its growth for mega capacity addition. its unlikely to do that now. The issue will be listed with the NSE. “We are concentrating on the tier-II and tier-II cities and are targeting the middle class.Alcheringa. On Thursday. credit cards. home loans. DIGEST UCO new branch UCO Bank has recently opened two new branches one at Margherita in Tinsukia and the other at Lepetkata in Dibrugarh. It is increasing the stake to 49% for which it will have to pay an additional Rs 137 crore. state industry. Unlike others. has bagged the first position in the Just A Minute (JAM) session and Rapshody.” added Mr Vig. Pradyut Bordoloi. structured products and fixed deposits. Though it has the rights to increase its stake. we sell products only when both the husband and wife come to the branch for a joint presentation. nonconvertible. deputy commissioner. the firm entered into a strategic alliance with Dhanlaxmi Bank to offer an online brokerage platform for the bank customers. DVC issue was rated AA by CARE and FITCH. It’s only in the past couple of months that NBFCs have again started lending.The fund was mobilised through a pool of nine arrangers at a cut off rate of 8. As many as 27 . Assam. Destimoney also has a distribution business through which it distributes mutual funds. The success is a repeat of DVC bond issue in 2003 when high investors’ confidence was reposed in DVC at a very aggressive cut off rate under Book Building Method. In its earlier avatar. SMIT fest The annual cultural fest of IIT Guwahati . non-cumulative. The move incidentally comes at a time when non-banking finance companies had been hit by the financial crisis and had pruned their branches and their asset growth. A large number of customers participated in both the events. It also secured the second position in Model United Nations (MUN) session. The issue has almost been doubly over-subscribed receiving applications for Rs 912. Jorhat and other senior executives of the zone were present at the inaugural ceremony. SK Nandi. The Lepetkata branch was formally opened by Gyanendra Dev Tripathy. it used to do only brokerage and wealth management business. DVC bond DVC floated seven years’ redeemable. Assam. The brokerage business has now been scaled up. Dibrugarh district. Destimoney picked up a 26% stake in PNB Home Finance for which it paid around Rs 80 crore. In December. The bank plans to use the online platform to attract more savings bank customers who will keep a larger float in the bank.8 crore. zonal manager. IAS. insurance. taxable bonds of Rs 10 lakh each for cash at par aggregating to Rs 500 crore with Green Shoe Option up to Rs 140 crore on private placement basis through Book-Building-Method.

6. Price rise no help: OMCs The recent price hike of Rs 2.62 per cent) for respective maturities.11 per cent (earlier 3. 3. He has over 35 years of work experience in oil & gas sector.85 per cent (3.47 per cent (earlier 3.99 per cent (earlier 6. theatrix (dramatics and street play competition).20 per cent).62 per cent (earlier 3.55 a litre on diesel has not been .71 per cent) for five years only.37 per cent (earlier 2.37 per cent) and 3.69 per cent (earlier 3. 2.45 per cent (2. 3.69 per cent (earlier 2.81 per cent) and 3.20 per cent (earlier 2. For EURO deposits.53 per cent) for three years. Bansal is a B Tech in chemical engineering.16 per cent) for two years to less than three years. The rate for NRE savings bank deposit remains unchanged at 3.08 per cent (earlier 2.21 per cent).50 per cent since 18.75 per cent).70 per cent) for the respective maturities.26 per cent). MUN was a UN mock Parliament in which the participants represented different countries and they had to speak on a political topic relevant to that country.44 per cent (earlier 3. 2.71 a litre on petrol and Rs 2.students of Sikkim Manipal Institute of Technology (SMIT) and two faculty members as teacher coordinator participated in the fest.02 per cent). Delhi.18 per cent (earlier 3.68 per cent) and 2. the bank has fixed interest rates at 2.36 per cent).50 per cent (earlier 6.08 per cent).36 per cent). 2. 2.59 per cent (earlier 2. 3.63 per cent) for corresponding maturities. 2010. 5. With regard to Canadian Dollar the bank has fixed interest rates at 2.20 per cent (earlier 3.91 per cent) for two years to less than three years and 3.90 per cent). 2. The students performed well in other events as well like quiz.83 per cent (earlier 2. director (planning & business development) has taken charge as chairman of Indian Oil Corporation Ltd.36 per cent (earlier 3. 6. Rates for NRE term deposits are 2. JAM is an extempore competition in which each participant was given one minute to speak on the topic given on the spot.25 per cent (earlier 2. He takes over the reins from Sarthak Behuria who completed his tenure on February 28.57 per cent) and 6. operating IndianOil’s refineries and technical services.14 per cent) for respective maturities. 3.78 per cent) for three years to less than four years).60 per cent) for one year to less than two years.28 per cent). T-shirt designing.26 per cent). In sync (dance competition) and last crusader (painting competition) and won a total of eight prizes. The revised rates for US Dollar are 1. comprising business development. the revised rates are 2.57 per cent (earlier 2.84 per cent (earlier 1.58 per cent (earlier 3.31 per cent) and 3.05 IOC new chairman Brij Mohan Bansal.65 per cent (earlier 6. Students from at least 25 institutes participated in the fest and the SMITians did shine among them and we are indeed proud of them. research & development.85 per cent) for one year to less than two years.29 per cent) for four years to less than five years and 3.94 per cent (earlier 4.94 per cent (earlier 2. Allahabad Bank rates Allahabad Bank has revised the interest rates on Foreign Currency Non-Resident (FCNR) deposits. supplemented by DIIT in process plant engineering from the Indian Institute of Technology.30 per cent (earlier 2. 2.11. In case of GB Pound deposits. For Australian Dollars the interest rates fixed by the bank are 6. 2.05 per cent (earlier 6. 3.22 per cent (earlier 6.

the only male singer to have received Dada Saheb Phalke Award. The price was increased after finance minister Pranab Mukherjee announced a hike in customs and excise duties on the two products. State industry. as being a tax component. Bharat Petroleum Corporation and Hindustan Petroleum Corporation continue to incur underrecovery of Rs 4. CIL felicitates Manna Dey Coal India Limited (CIL). commerce.27 a litre on petrol and diesel. power and public enterprises minister Pradyut Bardoloi inaugurating the Margherita branch of UCO Bank . The bank has sold 78 lakh equity shares at the rate of Rs 101.17 crore to Destimoney. PNB believes that the tie up with Destimoney will yield a more focused strategy which will result in a sharp growth in business. the amount goes to the government. “It is befitting that the felicitation is held in the city of Kolkata. Union coal minister Sriprakash Jaiswal presented a silver plaque to the versatile genius Manna Dey. Indian Oil Corporation. PNB Housing Finance Ltd. in favour of Destimoney Enterprises Pvt Ltd.97 a litre and Rs 3.of much help for the oil marketing companies (OMCs). felicitated the legendary singer Dada Saheb Phalke Award recipient Padma Bhushan Manna Dey recently. respectively. PNB sells stake Punjab National Bank has divested 26 per cent of its stake in its wholly owned housing subsidiary. famous for art and culture” said Jaiswal. The companies incur under-recoveries on auto and cooking fuels as they sell these products at a government controlled price. for his meritorious contribution to Indian music. in its role as a corporate citizen promoting art and culture.50 per equity share aggregating to Rs 79.

The Axis stock slid 2. Earlier. Ashok Kumar Dutt has joined Dena Bank as the new executive director on March 1. The Rs 2067-crore shareswap deal will result in an issue of 13. the deal is not “big enough” to make much of an impact on the stock. Axis scrip drops. the new chairman and managing director of United Bank of India is received by the executive director TM Bhasin. Despite the deal being a positive for the bank in the long term. on his first day of joining in the Bank on March 1. analysts said. but deal good in long term M Allirajan TNN Though Axis Bank’s acquisition of Enam’s investment banking (Ibanking) and equity broking business is seen as a “winwin” deal for both the entities. analysts tracking the bank said. some analysts believe that the valuations are on the higher side. The dilution is unlikely to have any impact on the capital adequacy ratio of the bank.8 million fresh equity shares.000 crore.7% on the BSE on Thursday to close at Rs 1. remain positive on the stock and have recommended “accumulate” on declines. If the net current assets (consisting largely of cash and equivalents) in Enam’s books are adjusted. analysts at Prabhudas . However. however. investors didn’t react positively to it.Bhaskar Sen. an analyst tracking the bank said.3% dilution on an expanded equity base. While stocks of some listed players in the space are trading at 15-16 times their estimated earnings for the 2010-11 fiscal. he was working with Allahabad bank as field general manager. Axis Bank is paying 23-25 times the PBT (profit before tax) reported by Enam in the first seven months of the current fiscal.427. Some analysts. the valuation is only slightly higher than peers. leading to a minimal 3. with Axis Bank’s current market capitalization standing at about Rs 62. 2010. they said.

.” he said. research. it would be taking a big leap on the equities side. “Enam provides the right platform (for Axis Bank) and a lot of synergies can be exploited from the deal.” said Rajiv Mehta. in such deals an acquisition premium of at least 10-20% is usually paid and so valuations are in line if they are taken on an adjusted basis. India private clients. Moreover. With this deal. which would be able to expand the I-banking business significantly.Lilladher said. market observers said. However. assistant vicepresident. the deal would give Axis the much needed leg-up in the I-banking and broking business. The continuity of Enam’s top management team and the five year noncompete clause for founders and promoters would work in favour of Axis. “Axis is not a significant player in I-banking and broking. IIFL. they said.

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