Angel Broking to foray into NBFC biz

Angel Broking plans to foray into non-banking financial companies (NBFC) segment and would invest Rs 500 crore in the first year. The company is also planning to come out with an initial public offering by 2010.

Angel Broking Chairman and Managing Director Dinesh Thakkar said, "We are planning to start NBFC activity. To fund this process, we are evaluating all options including debt, internal and external accruals. We have received several proposals for private equity investment, but nothing has been materialised so far."

One of the largest broking house in the country, the company plans to start the business in the first quarter of 2009 and it would be headed by a director-level person with a strong management team.

The company intends to have more than Rs 700 crore of loan book in its first year of operations. "Our intentions are to have this business grown to provide other loan products in due course," he said.

Apart from that, the company intends to foray into the West Asian market within eight months. "We are planning to launch our broking business in West Asia as there is a very high demand for financial products and high population of people of Indian origin there. Our business in Gulf is most likely to be a joint venture. We will complete the feasibility study within the next six months," Thakkar added.

Angel Broking is currently focusing on the wealth management segment.