Parsoli Corp plans Rs 18.25 cr IPO

Identifies merchant banker, issue expected by Diwali

Ahmedabad-based Parsoli Corporation Ltd has filed an application with the Bombay Stock Exchange (BSE) to raise Rs 18.25 crore. The company is expected to file its red herring prospectus in the next few days, while the public issue is expected by Diwali.

The board of directors of the company have approved the public issue of equity shares worth Rs 18.25 crore. This will raise the authorised share capital from Rs 15 crore to Rs 33 crore. Company officials said that the shares will be priced at Rs 10 with value at par, meaning that 1.8 crore shares will be issued. The company has also finalised its merchant banker for the issue.

Zafar Sareshwala, managing director of Parsoli Corporation Ltd said that the proceeds from the public issue will primarily be invested in strengthening the Parsoli Global Islamic Equity Fund, an open ended fund.

The Parsoli Global Islamic Fund is the mutual fund of Parsoli UK Ltd, a wholly-owned subsidiary of Parsoli Corporation Ltd.

"We will market the fund not just in the UK, but in Europe and the Middle East as well," said Sareshwala.

Sareshwala said that the Global Islamic Equity Fund is the only of its kind in western Europe and is regulated by the Financial Services Authority (FSA), UK.

"It is also compliant with the Individual Savings Account (ISA) scheme of the UK government," he added. The MD added that apart from the fund, Parsoli will introduce other products as well and will introduce cross selling of products.

"There are around 15 million muslims in Europe and this is the only fund, which puts us at a huge advantage. In addition, Parsoli UK has a list of 450,000 UK households and 850,000 individuals, which will come in handy," said Sareshwala.

In addition, the company also has a list of those Muslims that donate 'zakat', which is 2.5 per cent of the net surplus, to charity. "If we have the list of those who pay zakat, we also know who can invest how much," said the MD.

Parsoli has also signed agreements with Al Hamar, an agency based in UAE and Al Raee in Saudi Arabia to market the products in the respective countries.

"In fact, we are ready to move out of UK and have signed a tie-up to enter Germany," Sareshwala said.

Earlier, the board of directors engaged in activities like stock broking, investments and travels, approved the taking over Parsoli UK Limited, a company registered in United Kingdom, at a value of Sterling Pound 1.5 million equivalent to Rs 9 crore.

The price of acquisition was arrived on the basis of valuation report obtained from an independent firm. This move was aimed to enhance and enlarge its area of operations in overseas countries, which in turn will increase its bottom line.