Industry Profile: India has a diversified financial sector undergoing rapid expansion in terms of strong growth of existing financial services firms and new entities entering the market. The sector comprises commercial banks, insurance companies, non-banking financial companies, co-operatives, pension funds, mutual funds, and other smaller financial entities. In addition, the banking regulator has allowed new entities such as payments banks to be created recently, thereby adding to the types of entities operating in the sector. However, the financial sector in India is predominantly a banking sector, with commercial banks accounting for more than 64 percent of the total assets held by the financial system.
Along with the secondary market, the market for Initial Public Offers (IPOs) has also witnessed rapid expansion. As a result, initial Public Offerings increased to Rs 84,357 crore (US$ 13,089 million) by the end of FY18.
Over the past few years, India has witnessed a considerable increase in Mergers and acquisitions (M&A) activity. As a result, the total value of M&A in India rose 53.3 percent year on year to US$ 77.6 billion in 2017 from US$ 50.6 billion in the preceding year.
Company profile: IIFL is a financial services conglomerate started by a group of passionate entrepreneurs under the leadership of Nirmal Jain in 1995. Today company operates in various businesses, including Non-Banking and Housing Finance, Wealth and Asset Management, Financial Advisory and Broking, Mutual Funds and Financial Product Distribution, Investment Banking, Institutional Equities, Realty Broking, and Advisory Services. It was the pioneer in the retail broking industry with its launch of the 5paisa trading platform.
Shareholding Pattern: BSE Data.
Financials and Ratios : [table id=168 /]
Prospects: The company is one financial service company preparing for the demerger of business. It is expected to see the value unlocking after it. The company holds a good market share in brokerage, Lending, and Mutual funds. The company expects the demerger to make at least one lack crore value.
