Indiabulls Ventures Limited is one of India’s leading capital market companies providing securities and derivative broking services. The company is registered with SEBI as a Stock Broker, a Depository Participant, a Research Analyst and a Merchant Banker in Category I. The Company’s equity shares are listed on the National Stock Exchange of India Limited and BSE Limited and its Global Depository Receipts (GDRs) are listed on the Luxembourg Stock Exchange. The combined market capitalisation of these companies for the financial year 2017-18 was Rs. 75,838.2 Cr. The company’s subsidiary, Indiabulls Commodities Limited, provides commodity services in MCX and NCDEX exchanges. Indiabulls Ventures was the first Company to be assigned the BQ-1 grading by CRISIL, which is the highest broker quality grading and is a reflection of the financial stability, strong fundamentals, and stringent risk management controls that the Company possesses. Brickworks Ratings has also assigned a strong credit rating of BWR A+ and BWR A1+ for its fund and non-fund based facilities. The company is a pioneer of the online trading platform in the country. The company provides its healthy client base, in excess of 7 lacs, with investment solutions across asset classes through a dedicated sales team of more than 900 individuals across 18+ cities. The company is also engaged in the marketing of non-discretionary wealth management products through its subsidiaries. Indiabulls Ventures is a part of the Indiabulls Group, which is one of the country’s leading business houses with interests in housing finance, real estate, securities, personal financing, construction equipment leasing, and facilities sector. The group had combined revenues of over Rs. 22,114.9 Cr. and PAT of over Rs. 6,072.2 Cr. as on the 31st of March 2018. The financials of the company looks good, RoNW is 13.77% and at CMP its looks fairly priced. Price difference is around 7% at CMP and acceptance ration as per current share holding for retail will be around 10% for retail, but it may be possible that this ratio may go down as more people will buy for buyback and so we may expect the final acceptance ratio may be around 20% and profit may be 1-2%. So we give AVOID rating to this buyback.
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