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Friday, March 24, 2006

Emkay Share IPO opens on March 31

Emkay Share and Stock Brokers is entering the capital market on March 31 with an initial public offer, IPO, of 62,50,000 equity shares of Rs 10 each with a price band of Rs 100-120 per share through a 100% book building route. The issue will close on April 7, 2006, according to a release.

At least 9.07 lakh shares have been reserved for subscription by non-institutional investors and at least 21.17 lakh shares have been reserved for subscription by the retail investors.

The proceeds of the issue will be utilized for expansion of the company's operations and branch network in India and overseas as well as technology investment in the company's existing business, scaling up of its e-broking business, investment in subsidiaries and augmenting working capital requirement.

Emkay is a 10-year old broking house providing customized financial services like broking of equity and derivative products, portfolio management services and distribution of mutual funds and IPOs. Its clients include mutual funds, financial institutions, FIIs, banks, insurance companies as well as high net worth and retail investors.

The company holds membership of BSE, NSE, and is a depository participant with CDSL. Emkay also plans to acquire membership of MCX and NCDEX through its 100% subsidiary.

The company has a strong retail distribution and a customer base of over 17,000 clients for its broking services. Currently, the company has 17 branches and 24 franchisees which it intends to expand to 100 soon. It also intends to set up two overseas offices in Singapore and Dubai and six regional offices in India.

For the six months period ended September 30, 2005, Emkay had a total income of Rs 19.86 crore (Rs 198 million) and profit after tax of Rs 6.96 crore (Rs 69.6 million).


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