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Everstone-backed Centrum Capital is exploring options to raise capital, possibly through additional private equity (PE) investment.
The matter is to be discussed at a board meeting on April 4, according to an exchange notification.
Everstone Capital, which has $1.5 billion in assets under management (AUM), holds 14.71 per cent stake in the company through its PE fund Indivision India Partners.
The board meeting will consider “various options and strategies for fund raising to facilitate the future expansion plans of the company,” said the notice.
The board meeting will also discuss a bonus issue, sub-division of its equity shares, an increase in authorised share capital and alteration of the memorandum and articles of association of the company, said the notification.
The board meeting is also set to consider the convening of an extraordinary general meeting of the members of the company. The board meeting will decide on the date, time and venue for the same. The stock was up 0.87 per cent to close at Rs 1,280 on the BSE on Friday.
The company is involved in investment banking, wealth management, portfolio management, stock broking, foreign exchange, travel, lending, infrastructure and real estate advisory services
Its subsidiaries include Centrum Broking Ltd, Centrum Wealth Management Ltd, CentrumDirect Ltd, Club 7 Holidays, Centrum Financial Services Ltd and Centrum Infrastructure & Reality Ltd.
The firm has a network of 80 branches across India, according to its website.
Rajendra Naik, executive director, Centrum Capital told Business Standard that a number of PE funds and public funds had approached the company for potential investments.
“There has been some private equity interest for our investment banking and wealth management franchises. A large foreign financial institution has also expressed interest in a strategic investment in the forex business,” he said.
Naik stated that the wealth management business has in excess of Rs 1,500 crore in AUM.
The forex business targets a turnover in excess of Rs 3,500 crore for the financial year ending June 2013.
Its NBFC business is gearing up to fund debt market transactions in the mid-cap corporate sector, said Naik.
Centrum Capital had revenues of Rs 17.18 crore for the December quarter, compared with Rs 5.6 crore in December 2011. It had a net profit of Rs 2.24 crore in the latest quarter compared to a loss of Rs 8.92 crore in the same quarter last year.
