THE INVEST TRUST OF IND L Share price

FORTUNE FINANCIAL SERVICES (INDIA) PVT LTD was incorporated on14th June 1991 as a Private Limited Company at Bombay with itsRegistered Office at K.K. Chambers (Navsari Chambers) 2ndFloor Sir. P.T. Marg Fort Bombay-400 001 and was subsequentlyconverted into a Public Limited Company by passing a SpecialResolution in AGM held on 8.8.94 and obtained a freshCertificate of change of name on 20.10.94 from Registrar ofCompanies Bombay on conversion.PRESENT ACTIVITIES OF THE COMPANYFortune has been set up as a financial services Company engagedin diverse fields such as Merchant Banking Placements with NonResident Indians/Foreign Institutional Investors/FinancialInstitutions/Mutual Funds Corporate Finance Money MarketOperations Loan Syndication Placement of Commercial PaperCapital Market Operations Project Counselling and CorporateAdvisory Services.a)MERCHANT BANKING:Fortune was accredited as a Category I Merchant Banker by theSecurities and Exchange Board of India (SEBI) in April 1993. TheCompany has since commenced full fledged Merchant Bankingactivities and in a short span the Company has successfullyhandled 15 public/rights issues as Lead Managers Co-Managerand Advisors as the case may be mobilising in aggregate capitalof Rs.142 crores.The Issues handled by Fortune to name a few are : PanElectronics Ltd Pidilite Industries Ltd United Phosphorus LtdMarg Securities Ltd Moira Re-rolling Mills Ltd Maximaa SystemsLtd Vishal Chairs Ltd Trident Steels Ltd Spearhead Metal &Alloys Ltd Vijay Growth Financial Services Ltd VamotivalaChemical Industries Ltd Keystone Industries Ltd SalgutiPlastics Ltd Enarai Finance Ltd and Unified Agro Industries(India) Ltd.Fortune was involved in handling four issues for mobilisingfunds aggregating Rs.1153 lakhs in the capacity of pre-issueLead Manager. Further it was associated in four issues as postissue lead manager wherein the total funds mobilised wereRs.1198.98 lakhs. In the capacity of Co-managers/Advisors it wasinvolved in seven issues which mobilised Rs.11828.6O lakhs. Thisfar only one issue managed by Fortune aggregating Rs.284 lakhswas not fully subscribed thereby resulting in a devolvement onunderwriters.Fortune has recognised the liberalised economic policy of theGovernment and the opening of investment opportunities to theNon-Resident Indians. In order to channelise the Non-ResidentIndian Investment into the country it has established extensivemarketing network through its associates in U.A.E Europe andU.S.A through high networth investors and clients. Thisfacilitates marketing of issues approaching the capital marketin India with NRI Reservations. The Company specializes inplacement of shares to NRI''s thereby offering the Non-residentsan opportunity to invest in the country.Fortune has in addition several mandates in hand and theCompanies are slated to tap the capital market in the comingmonths. The Company is well placed to offer a complete packagein issue management including capital structuring and instrumentdesigning and marketing of issues to local and NRI clients. Inaddition to issue management the Company also acts asunderwriter to various Public/Rights issues. The Company has sofar underwritten 85 Issues aggregating Rs.23 crores.b)MONEY MARKET OPERATIONS:Money market operations include within its purview directfunding for intercorporate deposit requirements discounting ofbills (both clean or L/C) and intermediation for suchrequirements of the corporates. Further placement of commercialpaper is also included within its fold. The following are a fewof the prestigious clients of the Company:McDowell & Co Ltd. Transelectra Domestic Products Ltd.Western India Group Herbertsons Ltd.Mirc Electronics Ltd. Pidilite Industries Ltd.United Phosphorous Ltd. United Breweries Ltd.REPL Engeering Ltd. Alok Textiles Ltd.Blue Blends (I) Ltd. Electrex (India) Ltd.Fortune since its inception has been actively involved in MoneyMarket Operation and Corporate Finance activities by bridging thedemand and supply gap of funds for its corporate clients.Fortune''s presence in this field is visible by the increase inthe funds syndicated by it since 1991-92. In the first sixmonths of operations the total amount mobilised was Rs.8 Croresthereafter growing to Rs.20 Crores in 1992-93 and to Rs.80crores in 1993-94.c)LEASING & HIRE PURCHASEThe Company''s lease and Hire Purchase portfolio at present isRs.210 lakhs. At present the Company is concentrating on itsexisting clientele from its Merchant Banking and Money marketdepartments to tap this market.The Company provides Lease and Hire Purchase finance for theacquisition of plant & machinery equipments vehiclescomputers and consumer durables. The tenure and structure aretailor made to suit the client requirements.d)INVESTMENTSThe Company undertakes investment in shares of fundamentallysound companies after thorough evaluation of the performance ofthe Company. The basic guiding factor in all such decisions isto enhance returns by managing risks. Some of the criteria takeninto consideration while making investment decision are:1. Company analysis including leverage margins EPS etc.2.Industry/Company sensitivity to market factors.3.Historical price movement of the particular scrip.4.Market capitalisation vis-a-vis similar companies.5.Market information.6.Liquidity of the scrip.a)EQUITY RESEARCHAt present the equity research team carries on industry reviewsand research activities on individual companies which are madeavailable to its clients in the form of a monthly newslettertitled FORTUNE NEWS CAP. FORTUNE NEWS CAP contains informationon latest developments in the capital market and also detailedanalysis of equity offers that are being made to the public.