Company History - The Investment Trust of India
FORTUNE FINANCIAL SERVICES (INDIA) PVT LTD was incorporated on 14th
June, 1991 as a Private Limited Company at Bombay, with its
Registered Office at K.K. Chambers, (Navsari Chambers), 2nd Floor,
Sir. P.T. Marg, Fort, Bombay-400 001 and was subsequently converted
into a Public Limited Company by passing a Special Resolution in AGM
held on 8.8.94 and obtained a fresh Certificate of change of name on
20.10.94 from Registrar of Companies, Bombay on conversion.
PRESENT ACTIVITIES OF THE COMPANY
Fortune has been set up as a financial services Company engaged in
diverse fields such as Merchant Banking, Placements with Non Resident
Indians/Foreign Institutional Investors/Financial Institutions/Mutual
Funds, Corporate Finance, Money Market Operations, Loan Syndication,
Placement of Commercial Paper, Capital Market Operations, Project
Counselling, and Corporate Advisory Services.
a) MERCHANT BANKING:
Fortune was accredited as a Category I Merchant Banker by the
Securities and Exchange Board of India (SEBI) in April 1993. The
Company has since commenced full fledged Merchant Banking activities
and in a short span the Company has successfully handled 15
public/rights issues as Lead Managers Co-Manager and Advisors as the
case may be mobilising in aggregate capital of Rs.142 crores.
The Issues handled by Fortune to name a few are : Pan Electronics
Ltd, Pidilite Industries Ltd, United Phosphorus Ltd, Marg Securities
Ltd, Moira Re-rolling Mills Ltd, Maximaa Systems Ltd, Vishal Chairs
Ltd, Trident Steels Ltd, Spearhead Metal & Alloys Ltd, Vijay Growth
Financial Services Ltd, Vamotivala Chemical Industries Ltd, Keystone
Industries Ltd, Salguti Plastics Ltd, Enarai Finance Ltd, and Unified
Agro Industries (India) Ltd.
Fortune was involved in handling four issues for mobilising funds
aggregating Rs.1,153 lakhs in the capacity of pre-issue Lead Manager.
Further it was associated in four issues as post issue lead manager
wherein the total funds mobilised were Rs.1,198.98 lakhs. In the
capacity of Co-managers/Advisors it was involved in seven issues
which mobilised Rs.11,828.6O lakhs. This far, only one issue managed
by Fortune aggregating Rs.284 lakhs was not fully subscribed thereby
resulting in a devolvement on underwriters.
Fortune has recognised the liberalised economic policy of the
Government and the opening of investment opportunities to the
Non-Resident Indians. In order to channelise the Non-Resident Indian
Investment into the country it has established extensive marketing
network through its associates in U.A.E, Europe and U.S.A through
high networth investors and clients. This facilitates marketing of
issues approaching the capital market in India with NRI Reservations.
The Company specializes in placement of shares to NRI's thereby
offering the Non-residents
an opportunity to invest in the country.
Fortune has in addition several mandates in hand and the Companies
are slated to tap the capital market in the coming months. The
Company is well placed to offer a complete package in issue
management including capital structuring and instrument designing and
marketing of issues to local and NRI clients. In addition to issue
management the Company also acts as underwriter to various
Public/Rights issues. The Company has so
far underwritten 85 Issues aggregating Rs.23 crores.
b) MONEY MARKET OPERATIONS:
Money market operations include within its purview direct funding for
intercorporate deposit requirements, discounting of bills (both clean
or L/C) and intermediation for such requirements of the corporates.
Further placement of commercial paper is also included within its
fold. The following are a few of the prestigious clients of the
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 Money
Market Operation and Corporate Finance activities by bridging the
demand and supply gap of funds for its corporate clients.
Fortune's presence in this field is visible by the increase in the
funds syndicated by it since 1991-92. In the first six months of
operations the total amount mobilised was Rs.8 Crores thereafter
growing to Rs.20 Crores in 1992-93 and to Rs.80 crores in 1993-94.
c) LEASING & HIRE PURCHASE
The Company's lease and Hire Purchase portfolio at present is Rs.210
lakhs. At present the Company is concentrating on its existing
clientele from its Merchant Banking and Money market departments, to
tap this market.
The Company provides Lease and Hire Purchase finance for the
acquisition of plant & machinery, equipments, vehicles, computers and
consumer durables. The tenure and structure are tailor made to suit
the client requirements.
The Company undertakes investment in shares of fundamentally sound
companies after thorough evaluation of the performance of the
Company. The basic guiding factor in all such decisions is to
enhance returns by managing risks. Some of the criteria taken into
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 RESEARCH
At present the equity research team carries on industry reviews and
research activities on individual companies which are made available
to its clients in the form of a monthly newsletter titled FORTUNE
NEWS CAP. FORTUNE NEWS CAP contains information on latest
developments in the capital market and also detailed analysis of
equity offers that are being made to the public.
-Muthiah Ganapathy appointed as Company Secretary of Fortune
-Fortune Financial Services (India) Ltd has given the Bonus in the
Ratio of 1:1
- Fortune Financial Services India Ltd has appointed Mr. Sanjay
Kothari as an Additional Director w.e.f. September 25, 2009, through
a Board Resolution passed by circulation.
- The appointment of Mr. Devesh Kumar as the Joint Managing Director
and Group CEO.
- A new subsidiary Company viz. Fortune Integrated Home Finance
Limited has been incorporated to carry on the business of Home
- Mr. Chintan Valia has been appointed as an Additional Director of
- a new subsidiary company viz. Fortune Integrated Assets Finance
Limited has been incorporated to carry on the business of Vehicle &
other assets Loans.
-Its subsidiary entered into Memorandum of Understanding for
acquisition of 100% stake of Antique Stock Broking Limited.
-An agreement has been entered in to between Fortune Credit Capital
Ltd and M/s. Fortune Integrated Assets Finance Ltd (subsidiaries of
the Company) on September 29, 2014 for transfer of Vehicle Finance
business by Fortune Credit Capital Ltd to M/s. Fortune Integrated
Assets Finance Ltd on the terms and conditions as mutually agreed
between the subsidiaries.