Parsoli to open more offices in Gujarat

Ahmedabad-based Islamic fund management company Parsoli Corporation Ltd is planning to consolidate its position in Gujarat by March 2007.

Zafar Sareshwala, CEO and director of Parsoli, said, "The company wants to consolidate its position in Gujarat by the end of March 2007."

The company would set up its branch offices in six cities of the state along with two centres in Mumbai. It has planned a branch office each in Surat, Vadodara, Bharuch, Jamnagar, Vapi and add three more centres in Ahmedabad.

The company, promoted to tap the Muslim investments in India, provides retail stock broking and other financial services tailored to the requirements of investor's individual needs that are in accordance with the Shari'ah norms.

Sareshwala added that the Indian Muslim community was a large untapped investing community. India has approximately 150-180 million Muslim population. However, a majority of them stay away from the traditional investing instrument due to religious constraints.

"For the company, it's a huge market and we intend to tap it," Sareshwala said. The company is initially targeting 0.03 per cent of the total Indian Muslim population.

The Shari'ah law prohibits a Muslim from taking interest or investing in any company that is in the business of alcohol, meat and pork or any business that is termed 'un-Islamic'.

There is a large number of Indian muslims who stay away from the stock market as they cannot classify the companies on the basis of their business.

"The company is targeting this segment," he adds.

The company earned a net profit of Rs 4.5 crore for the financial year 2005-06 and aims to double it in the next two years.

It also plans to become a national player once it consolidates its position in Gujarat. "We plan to spread our operations across the nation in about three years' time," he said.

Meanwhile, the company will soon launch 'First India Islamic Fund' in Germany in collaboration with Gulf Investment Services Company (GISC) and Baader Wertpapierhandelsbank AG, a Germany-based bank.

The fund will be set up in the coming two weeks. GISC and Baader bank have taken 20 per cent and 24.9 per cent stake respectively in Parsoli Corporation.

Uto Baader, chairman of Baader Wertpapierhandelsbank AG, said, "We have invested Euro 10 million and will raise it to Euro 100 million in the next one year."

Parsoli Corporation is targeting Middle East and European countries to raise fund for its First India Islamic Fund, which it would invest in the Indian scrips.

For the fund, the initial seed capital worth Euro 20 million has been provided by GISC and Baader Bank.