Parsoli Corp to restructure

Parsoli Corporation Limited, a publicly listed company and one of the few Islamic financial institutions in the country, has decided to demerge its stock broking, travel and insurance business, as a part of its restructuring exercise.

Zafar Sareshwala, managing director and chief operating officer of Parsoli, told Business Standard, "We are going to demerge our existing business to carve out three separate companies under the flagship of Parsoli Corporation."

The company intends to create independent functioning of its each business segment. "Through segregating the three businesses from the parent company, we expect better utilisation of the resources and unleash the growth potential of these three business divisions," Sareshwala added.

At present, Parsoli Corporation Ltd is a non-banking financial company (NBFC) running businesses of stock broking, travel and insurance under one roof.

After the demerger, the three companies "" Parsoli Capital Market Ltd, Parsoli Travel House Ltd and Parsoli Insurance Service Ltd "" will become 100 per cent subsidiaries of the parent company Parsoli Corporation Ltd. The company aims to appoint one of the four top firms for the valuation.

"This will unlock lots of hidden valuation of the company," Sareshwala said.

In the next three weeks, the company will appoint one of the four valuation firms, and it expects the valuation study to be completed within the next two months.

"The demerger process will be completed by the end of the 2007-08 financial year," Sareshwala said. Currently, the networth of Parsoli is Rs 85 crore and the company expects to surge up to Rs 160 crore by the end of the 2007-08 financial year.