CENTRUM CAPITAL LIMITED

Centrum Capital Limited (CCL), incorporated in 1997 is a Public Company engaged in Investment Banking and a SEBI Registered Category-I Merchant Banker. The flagship company of the Centrum Group, has established fee based businesses in Investment Banking, Institutional Equities and Wealth Management and emerging Lending businesses in the SME, Affordable Housing & Micro Finance segments. It has also recently entered Insurance Broking and Asset Management. The Company offers a complete gamut of financial services in the areas of equity capital markets, private equity, corporate finance, project finance, stressed asset resolution. The Company is also engaged in trading of bonds. During the financial year ended 30 June 2014, Centrum Capital made an additional investment of Rs. 3,000.15 Lakhs in CentrumDirect Limited and Rs. 3,192.00 Lakhs in Centrum Wealth Management Limited (both being wholly owned subsidiary) by subscribing 8,85,000 Equity Shares of Rs 10/- each and 19,950,000 Equity Shares of Rs. 10/- each, respectively. During the year, the company has divested its investments of Rs. 4 Lakhs in Accounts Receivables Management Services (India) Limited at book value. During the year under review, Centrum Capital closed its US operations as part of cost control measures. Centrum Capital, as a Category I Merchant Banker, has done a total deal size of Rs.73 billion including debt restructuring during the year. Centrum Group has further strengthened its foray into retail financial services during the year as part of ambitious long-term plans to build a strong retail franchise. During the year under review, Centrum Wealth raised capital through innovative structures for many growth businesses through the high net worth investors. This is a key strength developed by Centrum Wealth to increase its penetration in the Private Wealth Management space. During the financial year ended 30 June 2015, Centrum Capital, for strategic reasons and to better align its various businesses, has reorganized the Centrum Group Structure by transferring its entire equity investments in its subsidiaries viz. Centrum Wealth Management Limited, Centrum Financial Services Limited and CentrumDirect Limited to a newly formed subsidiary viz. Centrum Retail Services Limited and has also incorporated two new subsidiaries namely Centrum Infrastructure Advisory Limited and Centrum Defence Systems Limited. The company through the mix of primary and secondary issuance diluted 19.81% of its stake in Centrum Retail Services Limited. Centrum Capital presently holds 80.19% in Centrum Retail Services Limited. Centrum Capital has also divested its 100 % investment in Centrum Infrastructure and Realty Limited. Centrum Wealth Management Limited which is a step down subsidiary of Centrum Capital has incorporated a subsidiary named Acorn Fund Consultants Private Limited and the Associate Company i.e BCB Finance Limited has become a subsidiary of CentrumDirect Limited (step down subsidiary of Centrum Capital Limited) with effect from 5 August 2015 as CentrumDirect Limited has acquired additional equity stake of 26.15% in the open offer of total capital of BCB Finance Limited. Centrum Broking Limited swung to a meaningful profit in FY14-15 from a loss in FY13-14 due in part to the operating leverage experienced in the institutional equities business. While the general upturn in the markets certainly helped, the buoyancy was furthered by better utilisation of resources - research, sales and dealing. Centrum Broking added about 10 new empanelments and also got enhanced business from existing clients during the year. Centrum Capital changed its financial year from June-July to April-March. The company's financial year 2015-16 was of nine months from 1 July 2015 to 31 March 2016. During the period under review, Centrum Capital raised Rs 49.98 crore by way of issue of unlisted, unrated, redeemable debentures, each exchangeable with equity shares of CentrumDirect Limited pursuant to the call option, not convertible into securities of the company, having a face value of Rs 1 lakh each for cash at par on a preferential basis.Club 7 Holidays Limited ceased to be a step-down subsidiary company of Centrum Capital with effect from 31 August 2015. Acorn Fund Consultants Private Limited became Joint Venture company from a subsidiary company of Centrum Wealth Management Limited with effect from 9 December 2015.During the period under review, Centrum Wealth Management Limited (CWML) strengthened its position as a full-fledged private wealth firm. In the Asiamoney Private Banking Poll 2016, Centrum Wealth Management was ranked 'Best Domestic Private Bank in India'. Acorn Fund Consultants Private Limited (Acorn Fund) is the 50:50 joint ventures between Pratibha Realty Company Private Limited and Centrum Wealth Management Limited. Acorn Fund was incorporated on 24 August 2015 with an object to carry on business of acting as Manager, Advisor, Consultant, Trustee, and Administrator of venture capital funds, investment funds, private investment funds or any other funds in India or outside India. During Financial Year 2015-2016, Acorn Fund associated with 'Kalpavriksh Trust' as an Investment Manager. The Trust is organized as a contributory trust under the Indian Trusts Act, 1882 and is registered with the Securities and Exchange Board of India (SEBI) as a Category II Alternate Investment Fund under the SEBI (Alternate Investment Fund) Regulations, 2012. During the Financial Year 2015-2016, Centrum Retail Services Limited infused Rs 96.61 crore in the form of equity capital in its wholly owned subsidiary Centrum Financial Services Limited (CFSL). CFSL has a stable and scalable platform for Loan against Securities with robust risk controls and refinance lines. The institutional broking business of Centrum Broking Limited turned in a modest profit for the nine months ended 31 March 2016 even as it continued to invest in the franchise despite a challenging year. There were 18 new empanelments as well as improvement in vote shares among existing clients.During the financial year ended 31 March 2017, Centrum Capital divested its 32.5% equity stake in Buyforex India Limited to CentrumDirect Limited, a step-down subsidiary company. Buyforex India Limited has purchased 100% equity stake in Krish & Ram Forex Private Limited, thus Krish & Ram Forex Private Limited has become the step-down subsidiary of Centrum Capital w.e.f. January 27, 2017. Centrum Wealth Management Limited, a step-down subsidiary company of Centrum Capital, increased its equity stake from 12.5% to 25% in Indian Property Advisors LLP w.e.f. March 24, 2017. Centrum Retail Services Limited, a subsidiary of Centrum Capital has purchased 100% equity stake in Centrum Microcredit Private Limited (CMPL), formerly known as Nobita Trading Private Limited and thus Centrum Microcredit Private Limited (CMPL) has become a step-down subsidiary company w.e.f. March 22, 2017. CMPL has applied to RBI for NBFC MFI License after the financial year ended March 31, 2017. Centrum Retail Services Limited has divested its 14.89 % stake in CentrumDirect Limited to NYLIM Jacob Ballas India Holdings IV and Jacob Ballas Capital India Private Limited during the financial year ended March 31, 2017. CentrumDirect Limited, a step down subsidiary company, purchased an additional 4.97% equity stake in Pyxis Finvest Limited (NBFC). Thus the equity stake in Pyxis Finvest Limited (NBFC) has increased to 57.13% from 52.16%. During the year under review, Centrum Retail Services Limited infused Rs 96.61 crore in the form of equity capital in its wholly owned subsidiary Centrum Financial Services Limited (CFSL). Centrum Housing Finance Limited (CHFL) was incorporated on March 3, 2016 as a subsidiary of Centrum Retail Services Limited (CRSL). CHFL has received Certificate of Registration under Section 29A of the National Housing Bank (NHB) Act, 1987 on November 10, 2016 to carry on the business of housing finance without accepting public deposits. CHFL commenced operations on December 10, 2016 with an aim to be the first choice financier for middle class' India by providing access to hassle free long-term housing finance. During the year under, Centrum Broking Limited's institutional broking business clocked highest ever profit since the inception. During the financial year ended 31 March 2018, Centrum Capital allotted 2,01,07,260 convertible warrants on preferential basis at a price of Rs 74.60 per warrant to BG Advisory Services LLP. During the year under review, the company's Investment Banking division concluded the mandate to raise structured finance of Rs 80 crores for NISA Industries Services Pvt. Ltd. Centrum Capital was a Book Running Lead Manager for Syndicate Bank's Qualified Institutional Placement of Rs 1150.8 crores. It was the sole advisor to Waree Energies Ltd. to raise Rs 100 crores in growth capital. During the year under review, the company's Wealth Management division expanded its presence to three new locations - Hyderabad, Surat and Rajkot. Leadership hiring for the franchisee business was also completed during the year. Significant investments were made in technology for better client experience, process automation, digitisation and paperless client on boarding. The Family Office practice has been successful in onboarding several large UHNI families in its first full year of operations. Services such as estate planning and tax advisory have helped build new relationships. Additional services of tax structuring, legal advisory, philanthropy and real estate were introduced during the year. Centrum Housing Finance Limited, a professionally managed housing finance company, inaugurated its first branch in February 2017 and has built a strong process and system architecture over the year. During the year under review, Centrum Housing Finance signed a MoU with the National Housing Bank (NHB) to avail of Credit Linked Subsidy Schemes - for EWS, LIG & MIG sections under the Pradhan Mantri Awas Yojana' mission of Housing for All by 2022'. Centrum Capital commenced its Microfinance operations with the acquisition of FirstRand Bank's Micro Finance Businesses on 1 December 2017. The business started with a network of 25 branches in Mumbai, Thane and Palghar. It subsequently expanded into Gujarat and Raigad. Additionally, a centralised operating unit was set up in Mumbai. During the year under review, Centrum Capital's Insurance Broking business integrated its travel insurance product across all branches and airport counters for seamless policy issuances. It ventured into the commercial SME insurance segment to cater to the needs of corporate clients. Furthermore, it leveraged its technological capabilities to introduce paperless issuance of policies for health and life insurance. Centrum Capital's Asset Management division launched and achieved its first closing of a venture growth fund focused on consumer businesses. The Asset Management division also launched a Real Estate Management & Advisory (REMA) business. Centrum Alternatives was incorporated as a LLP in July 2017. During its first year, the focus was on building team capabilities and consolidating Centrum's third party investment management activities under Centrum Alternatives. In April 2018, Centrum divested its entire stake in the money exchange business to US-based technology firm EBIX Inc, a leading international supplier of On-Demand software and E-commerce services. During the financial year under review, Centrum Capital incorporated a foreign subsidiary, Centrum International Service PTE Limited by investing Rs 193 Lakhs. The company made additional investment of Rs 3,463.31 Lakhs in Centrum Microcredit Private Limited, Rs 17,215.28 Lakhs in Centrum Financial Services Limited and Rs 2,600 Lakhs in Centrum Housing Finance Limited. Centrum Capital with its partner incorporated an LLP named Centrum Alternatives LLP and the company became a partner in Centrum Alternatives LLP by initially contributing Rs 0.66 Lakhs and acquired an interest of 66.67%. Further during the year, an additional contribution of Rs 500.30 Lakhs was made. Centrum Alternatives LLP with its partner incorporated another LLP named Centrum REMA LLP by initially contributing Rs 0.99 Lakhs in the said LLP. Centrum Retail Services Limited immediate subsidiary had bought back 2.17% equity stake from its investor. In this regard, the total stake held by the company in Centrum Retail Services Limited is 85.32%. Centrum Retail Services Limited had acquired 99.36% equity stake in Centrum Securities Private Limited, hereby Centrum Securities Private Limited became a subsidiary of Centrum Retail Services Limited. Centrum Capital Limited had made additional investment of Rs 295 Lakhs and Rs 495 Lakhs in Centrum Defence Systems Limited and Centrum Infrastructure Advisory Services Limited, Wholly owned subsidiary companies Centrum Capital's step-down subsidiaries i.e. Agrata Mercantile Private Limited and Shree Srinivas Realtors Private Limited have been merged with its immediate holding company, Centrum Financial Services Limited. Centrum Capital's step-down subsidiaries i.e. Centrum Housing Finance Limited, Centrum Financial Services Limited and Centrum Microcredit Private Limited became direct subsidiaries of the company. In 2018, the Company monetised the Money Exchange business (CentrumDirect) by selling it to Atlanta based, NASDAQ listed - Ebix Inc. It acquired L&T Finance's Supply Chain Finance Loan Book of Rs 650 crore. The Company launched maiden structured credit fund- Centrum Credit Opportunities Fund in 2019. The Company incorporated Centrum Capital Advisors Limited w.e.f. April 26, 2019 and infused capital of Rs. 1 crore. In 2020, the Company's Affordable Housing Finance business received a substantial Private Equity investment from a fund managed by Morgan Stanley Asia. Secondly, it acquired the business operations of a Delhi based Micro Finance Company- Altura Financial Services. Thirdly, it launched maiden structured credit fund, and finally, opened the first international office in Singapore and cloMicro Finance business acquired the business operations of Altura Financial Services. It commenced operations in Singapore. With fund raising getting increasingly difficult for NBFCs, the team securitized Rs 50 crore of the Supply Chain dealer financing (SCF) and vendor financing book. In December 2020, Micro Finance business raised US$5.55 million (about Rs 41 Crore) debt from Singapore-based impact investing and sustainability organisation Impact Investment Exchange (IIX). The Company acquired the business operations of National Trust Housing Finance in 2022. Centrum Microcredit Limited, the group's micro finance business merged with Unity Bank for scaling up the profitability in 2022. An application for the amalgamation of Centrum Capital Limited and Centrum Microcredit Limited was filed with the Hon'ble National Company Law Tribunal on April 13, 2022. Pursuant to transfer of business undertaking to Unity Small Finance Bank Limited and surrender of NBFC-MFI RBI License, there was no business operations in Centrum Microcredit Limited and thus the amalgamation was considered to be strategically beneficial. The Amalgamation Scheme became effective from April 01, 2022. In 2023, the Company launched its second fund - the India Credit Opportunities Fund II that achieved first close in August, 2023. Centrum Broking rolled out a digital Investment platform, Centrum GalaxC - Offering investment opportunities across asset classes in 2024.