Parsoli plans Rs 50 crore expansion

An Islamic financial institution and broking firm from Ahmedabad plans to accelerate the expansion of Islamic financial services with the infusion of fresh funds, either through private placements or through fund infusion undertaken by its promoters.

Parsoli Corporation Ltd (PCL), a publicly-listed company and one of the few Islamic financial institutions in the country, involved in insurance, travel and share broking plans to invest over Rs 50 crore on its expansion in India and abroad.

Talking to Business Standard, Zafar Sareshwala, managing director and chief operating officer of Parsoli, said, "We will infuse over Rs 50 crore on our expansion plans."

The company will be increasing its authorised share capital from Rs 34 crore to Rs 50 crore, subject to the approval of the members of the company.

Once the authorised share capital is raised, the company will raise the required funds, either through private placements or the promoters of the company will infuse their own funds, said Sareshwala.

The company, which recently undertook an expansion drive to have a pan-India presence, targeting the areas in the country with Muslim population, is also restructuring its group companies.

After the restructuring, four companies will be carved out of the present company "" Parsoli Corporation Ltd (parent company), Parsoli Capital Market Ltd, Parsoli Travel House Ltd and Parsoli Insurance Service Ltd.

At present, PCL is a non-banking financial company (NBFC) running business of stock broking, travel and insurance under one roof. The PCL had appointed advisory firm KPMG to submit the restructuring of Parsoli Corp.

Sareshwala informed that the company had already increased the number of its branches from one in Ahmedabad to multi-location branches across the country reaching upto 21 branches.

"We have another 12 new branches in the pipeline, and that will be operational within the next two months," he added.

It plans to have 100 branches in all in India and will add one branch each in Germany and France. The branches in Germany and France will be set up through the company's UK-based subsidiary, Parsoli (UK) Ltd.

The promoters of the company hold 43 per cent and the rest is held by other financial institution and public. It must be recalled that recently Germany-based bank, Baader Wertpapierhandelsbank and Oman Commercial Services had invested in the company.

Parsoli along with its associate IBF-Net launched the Parsoli-IBF Islamic Equity Index (PIE), the first Indian Islamic Equity Index enabling investors to invest in equities conforming to the Shari'ah.

The company clocked total income and net profit of Rs 2.50 crore and Rs 81.5 lakh respectively for the first quarter ended on June 2007.

While for fiscal 2006-07, the company earned a net profit of Rs 4.27 crore and saw total income of Rs 8.71 crore. The company claims to have net worth of Rs 60 crore.