IL&FS Investsmart plans alliance, IPO

IL&FS Investsmart India, an IL&FS group company, is scouting for a strategic partner. Alternatively, the company is also looking at the option of floating an initial public offering (IPO).

Hemang Raja, managing director and chief executive officer, IL&FS Investsmart India, said, "With bullish sentiments continuing on the stock market, the board is looking at options of inducting a strategic partner or tap the market with an initial public offering. "But no firm decision has been taken yet."

IL&FS Investsmart provides complete financial management solutions for retail as well as corporate customers.

It is also engaged in investment advisory and broking, merchant banking, project syndication, securities broking and distribution of financial products.

In the last few months, the company has drastically increased its retail focus and has seen a drastic rise in business volumes and customer base.

Commenting on the growth in business, Hemang Raja said, "Our retail business has grown more than 10 fold in the last 12 months.

"Our volumes in the derivative segment, a mere Rs 25.50 crore in January 2003, has grown to over Rs 300 crore now. Moreover, our customer base has increased to over 40,000 from 18,000 in the last 12 months."

While its institutional business has grown by 500 per cent during the same period.

Meanwhile, IL&FS Investsmart's merchant banking division has bagged mandates for 10 initial public offering either as lead managers or co-lead managers with an average size of Rs 50-200 crore.

Most of these IPOs are slated to hit the market in the current year.

IL&FS Investsmart, which currently has presence at 54 locations, is also expanding its presence in a number of mid-size towns.

Hemang Raja added, "We are revamping our entire systems to have a larger presence. Further, we plan to concentrate on distribution of financial products including mutual funds and insurance."