SMC Global Securities on Wednesday made a direct debut on the BSE, NSE to provide liquidity to its existing shareholders. The stock was listed at Rs 90.90 on NSE and Rs 91.60 on BSE.
The company that was already listed on Calcutta Stock Exchange (CSE) went public in 90s and was listed on multiple stock exchanges.
"We went public in 1995-96 and got listed stock exchanges in Delhi, Calcutta, Ahmadabad, Ludhiana and Guwahati. Except Calcutta Stock Exchange, rest of other exchanges got closed. Trading has been minimal at CSE too. Therefore, to unlock shareholders wealth and provide liquidity to our 1500-odd shareholders, we decided to go for mainboard listing," Subhash C Aggarwal, SMC Global Securities told BusinessToday.In.
The promoters hold 62 per cent in the company, while 38 per cent include public, corporate, and high net-worth investors.
Should you buy?
The broking space is crowded. Already big players such as Motilal Oswal, Edelweiss Financial Services, ICICI Securities, Angel Broking and 5paisa Capital are listed, while discount brokerages such as Zerodha and Upstox of the worlds are giving tough competition to traditional brokerages.
To this, Aggarwal says they have already ventured into discount brokerage through its subsidiary company under the brand 'STOXKART'. "We have a unique model in which you pay brokerage only when you make profit. No profit, then no brokerage fee."
Besides, the company earns its revenues from various sources with broking income contributing 49 per cent to it. "Apart from 49 per cent revenues coming from brokerage fee, we have multiple revenue streams from investment banking, wealth management, PMS, third party distribution, real estate broking, insurance broking, NBFC to fixed income securities and HFT & algo trading. Besides traditional equity, we also handle commodity and currency broking," says Aggarwal.
Speaking at the listing ceremony, Vikram Limaye, MD & CEO, National Stock Exchange said: "It gives us immense pleasure to on board SMC Global on the NSE main board platform. We are confident that the company in the broking industry has a major role to play in having financial inclusion and ongoing digital revolution."
SMC Global reported Consolidated Total Revenue of Rs 6,38.5 crore for the 9M FY21, an increase of 9 per cent in total revenue. Profit after Tax for the 9M FY21 was Rs 67.7 crore, an increase of 268 per cent compared with corresponding 9M FY20.
The company has witnessed a CAGR growth of 15 per cent and 21 per cent in revenue and PAT, respectively, in last five years.
The company recently declared interim dividend of 60 per cent for 9M FY21. "We have been consistently paying dividend to our shareholders since FY 2013-14," the company says in its press release.