Idbi Asset To Hike Paid-Up Equity To Rs 25 Crore

IDBI Asset Management has firmed up plans to increase its paid-up equity capital to Rs 25 crore from the existing Rs 5 crore. The infusion of fresh capital will be carried out over a period of two years, a senior AMC official said.

This, the official said, would be done for providing better facilities to investors and not for the purpose of assuring returns. The IDBI Investment Management Company Ltd (IIMCO) has worked out a detailed plan to establish a well spread retail marketing network which will be fully computerised and integrated with a central office.

"To date major cities have been contributing to the extent of 70 per cent of the total fund mobilisation and the balance came from 60 to 70 cities/towns. This pattern is likely to change in the coming years. A sizeable population, living in the semi-urban and rural areas, can be successfully tapped by the mutual funds for raising resources," the source said.

 

The centres will be fully computerised in the next three years. To start with, about 20 regional and branch offices would be opened by IIMCO in the next 3 years along with franchise offices in 120 other cities and towns.

The number of such offices would be increased to 220 by end of 2002, an official added.

IIMCO has already worked out an arrangement with seven bank branches in 125 cities and towns.

The AMC is also engaged in the process of expanding its corporate office in Mumbai. The research department will be additionally strengthened to take care of future growth plans.

"The barometer of success of the old and the new players is their performance and quality of investor servicing. The new banks have succeeded, there is no reason why the new players in the mutual fund industry should not succeed," said PS Subramanayam, chairman, IIMCO.

"The new mutual funds operate on more sophisticated analysis backed up by an application research and the fund accounting is more systematic. The fund managers of the new mutual funds have a tough job on hand with the market still in a bear grip," Subramanayam added.