[T.S.R:18299] Money Matters Finance-Getting Up And Around

Money Matters-Could Make A Break For Rs 200

The stock should make an attempt to reach Rs 200 a piece over the next six months, which will be 1X Book Value of March 2012.

 

Money Matter has been primarily operating in the investment banking space with an emphasis on debt advisory business. MMFSL (along with its subsidiaries) offers the entire bouquet of financial services encompassing Credit Syndication and Debt Capital Market Advisory Services (Primary and Secondary),

Financial Restructuring, Investment Banking and Asset Financing. Going forward the Company has decided to concentrate on fund based activities and the non fund based activities such as advisory business will be carried on through its wholly-owned subsidiaries.

 

 

In October2010 MMFSL issued 71,17,153 equity shares of 10/- each fully paid-up at a premium of

615.25 per share to QIB's as defined in Regulation 2(1)(zd) of SEBI (ICDR) Regulations, 2009 pursuant to Chapter VIII on private placement basis. Out of the above 879,648 equity shares were issued and allotted to Domestic QIB, aggregating to 549,999,912/- and 6,237,505 equity shares of 10/- each fully

paid-up were issued and allotted to Foreign Institutional Investors in QIP under Schedule 2 of Regulation 5(2) of the Foreign ExchangeManagement (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 i.e; Purchase/sale of shares and/or convertible debentures of an

Indian company by a registered Foreign Institutional Investor under Portfolio Investment Scheme, and received an amount aggregating to 3,900,000,001.25. The total amount received from Domestic and Foreign QIB is 4,449,999,913.25. All the above shares ranks pari-pasu with the existing equity shares.

After these allotments total outstanding issued, subscribed and paid up equity share Capital of the Company has increased to 348,684,580/- from 277,513,050/-.

 

The Key Investors were Morgan Stanley, Wellington Asset Management and IVY League Opportunities Fund, which are still with the company even in December 2011.

 

More importantly, MMFSL had roughly Rs 100 crore in Investments, Rs 200 crore in Fixed Deposits With a Bank and Rs 200 crore in Loans and Advances besides a substantial sum in stock in trade (Mostly GOI debt for trading purposes).

 

All this put together brings MMFSLs book value in excess of Rs 200 per share, most of which is in cash or cash equivalent form. Also as the largest syndicated debt player in the country, it is explicable that the stock should quote at 0.5 times it's March 2011 NAV.

 

Over the next 6 months, MMFSL scrip could make a upward journey towards the Rs 200 mark which gives a return of 100 per cent hereon and even then the stock will remain at a third of the issue price of the QIP made a year and a half ago.

 

 

 

Safe Harbor Statement:

Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.

 

Nothing in this article is, or should be construed as, investment advice.

 

 

 

 

 

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