Allegro plans IPO, to launch fund for NPAs
Allegro Capital Advisors may go public after a year and is considering a fund that will invest in non-performing assets of banks now at over Rs 60,000 cr.india Updated: Jan 23, 2006 15:36 IST
Bangalore-based merchant banker Allegro Capital Advisors may go public after a year and is considering a fund that will invest in non-performing assets of banks now at over Rs 60,000 crore.
The company is talking to foreign financial institutions for forming a consortium for the fund that will also invest in real estate and private equity, Kunal Kashyap of Allegro said.
Allegro, which is registered with SEBI as portfolio management services firm, has also applied for Category-I merchant banking licence to foray into securities brokerage business, he said.
The company, which has offices in 38 cities and manages assets worth about Rs 500 crore of 2,500 odd clients, has plans to list its shares in bourses after a year.
"We are in the process of evaluating an IPO. It may come after 12 months," Kashyap said.
There is no dearth of capital now as the company carries out fee-based services, he said, adding "we are planning to launch fund-based business and pick up distressed assets of banks (NPAs)."
Allegro has already advised corporates like SPIC, Indian Seamless, Duncans and India Cements for restructuring debts, he said.
The company is now looking forward to launch a fund that will invest in distressed debts, real estate and private equity, he added.
The company earned a revenue of Rs 10 crore last fiscal and expect it to double to Rs 20 crore this fiscal and Rs 60 crore in 2006-07.