BackSMC Global Securities receives Sebi approval for its IPO
SMC is looking to raise `125 crore from the IPO
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Mumbai: SMC Global Securities Ltd has received approval for its initial public offering (IPO) from the Securities and Exchange Board of India (Sebi) and will launch its IPO in the current quarter, a person involved in the initial share sale said, requesting anonymity.
The firm filed its draft red herring prospectus (DRHP) with Sebi on 20 October. SMC is looking to raise ₹125 crore from the IPO.
ICICI Securities Ltd and Elara Capital (India) Pvt Ltd are managing the sale.
The offer involves a primary issue of shares worth ₹107 crore, while Millennium Investment & Acquisition Company Inc. (formerly known as Millennium India Acquisition Company Inc.), an investor in the company, will offer shares worth ₹18 crore through the issue, according to the DRHP filed with Sebi. Millennium holds 13.02% shares in the company and it will make a partial exit through the IPO.
In 2007, Millennium had invested 164 crore in two SMC group firms—SMC Global and SAM Global Securities.
Apart from Millennium, media group Bennett, Coleman & Company Ltd (BCCL, 3.83%) and South African financial services firm Sanlam International Investment Partners Ltd (8.36%) are also shareholders in the firm.
The firm intends to utilize the funds for margin maintenance which means the capital required to cushion their trade exposure with the stock exchanges (₹30 crore) and for investment (₹50 crore) in subsidiaries Moneywise Financial Services Pvt Ltd and SMC Capitals Ltd.
SMC had filed for an IPO in 2013, but later deferred it till 31 March 2015, as primary markets lost their attractiveness with the economic downturn in the country.
Apart from broking services, the firm is also involved in businesses such as wealth management, investment banking and insurance.
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