Acumen Capital to open 40 more branches

Kochi based broking house, Acumen Capital Market (India) Limited, will be opening 40 new branches across the country during the current financial year, according to vice-chairman and managing director Akshay Agrawal.

“A major chunk of the proposed branches will come up in the four southern states as the region is rather un-tapped as far as the capital and commodities markets are concerned. Branches will also be opened in states like Gujarat and Bihar,” he told Business Standard.

The company currently has around 500 outlets across the country. The new branches will be a mix of company-owned and franchisee outlets.

Acumen, the erstwhile Peninsular Capital, was founded in 1996 and was renamed in 2008. The company had taken a major expansion plan in 2008 and the next big plan is being charted during this year. Agrawal said that the company had performed reasonably well in 2011-12, though the market was passing through a dull phase.

 

“The worst phase is over as far as the capital markets are concerned. I am optimistic about the next five years, and hence the company has initiated the expansion of its branch network,” he added.

The retail investor participation in the market has been static or coming down for the last four to five years. But, this is picking up slowly this year. The commodities markets performed well in 2011-12 as there was a 50 per cent rise in volumes and participation. Both Nifty and the Sensex are now at par with the levels in 2007, Agrawal said.

The profitability of corporate India has been doubled during this period, which points out to the strength of the Indian economy. By 2017, the profitability of Indian companies is likely to be quadrupled. So, the capital markets will also be more vibrant in the coming years, he added.

“Except for negative factors like swelling up of crude oil prices, increase in government borrowings and galloping fiscal deficit, all other economic parameters are on the positive side,” he said.

Acumen is also planning to conduct more investor awareness programmes during this year in order to enhance the retail investor participation. Last year, the company had conducted more than 250 such camps across the country, Agrawal said, adding that a major technological upgradation was also on the anvil.