SMC GLOBAL SECURITIES LIMITED IS GOING TO BE LISTED VERY SOON IN BSE & NSE VIA FPO

Company was incorporated in New Delhi on December 19, 1994 under the Companies Act as ‘SMC Global Securities Limited’, a public limited company.

Registered and corporate office of our Company:

11/6B, Shanti Chamber,
Pusa Road,
New Delhi 110 005
India
Telephone: +91-11-30111000, 40753333
Fax: +91-11-25754365
Email: smc.fpo@smcindiaonline.com
Website: http://www.smcindiaonline.com

Address of the Registrar of Companies

Registrar of Companies,
National Capital Territory of Delhi and Haryana
4th Floor, IFCI Tower,
61, Nehru Place,
New Delhi 110 019,
India
Telephone: +91 (11) 2623 5704
Facsimile: + 91 (11) 2623 5702

Company Secretary and Compliance Officer

Mr. Suman Kumar
11/6B, Shanti Chamber
Pusa Road,
New Delhi – 110 005, India
Tel: +91 (11) 30155100, 30111000
Fax: +91 (11) 25754365
Website: www.smcindiaonline.com
Email: smc.fpo@smcindiaonline.com

During the FY 2012-2013, your company reported standalone revenue of rs. 17739.17 lacs as compared to the previous yesr's standalone revenue of rs. 17264.91 lacs. This resulted in a standalone profit after tax of rs. 1060 lacs VIS-A-VIS a standalone profit after tax of rs. 78.42 lacs in FY 2011-2012. E.P.S 0.94 in 2013 and 0.07 in 2012.

Subsidiaries

SMC Capitals Limited, 

SMC Comtrade Limited, 

SMC Insurance Brokers Private Limited, 

SMC Comex International DMCC, 

Moneywise Financial Services Private Limited, 

SMC ARC Limited, 

SMC Investments and Advisors Limited, 

SMC Finvest Limited,

Moneywise Finvest Limited.

This year one of Subsidiaries, SMC INSURANCE BROKERS PVT. LTD. has registered profit after tax of rs. 539.67 lacs compared to PAT of rs. 23.17 lacs in the previous FY 2011-2012.

FPO

Your company has received SEBI'S nod for proposed issue through FPO. SEBI through its letter dated 10th may, 2013 has given its approval for the FPO and SMC is mandated to bring the proposed issue within a period of 12 months from the date of issuance of the approval. however we are trying to come out with proposed FPO as soon as possible and company is waiting for the appropriate market conditions as to when to bring about this issue.

OBJECTS OF THE ISSUE

The Issue comprises a Fresh Issue by our Company and an Offer for Sale by the Selling Shareholder.

The Offer for Sale

The Selling Shareholder proposes to Offer for Sale 79,33,690 Equity Shares of ` 2 each. Our Company will not receive any proceeds of the Offer for Sale by the Selling Shareholder.

The Objects of the Fresh Issue

Our Company through this Issue, is making a fresh issuance of 79,33,690 Equity Shares of face value of ` 2 each.

The details of the proceeds of the Fresh Issue are summarised in the table below:
                                                               (rs. in crore)
Particulars                        Amount                                                                                                             
Gross proceeds from the Fresh Issue(1)      [●]

(Less) Issue related expenses(2)                  [●]

Net Proceeds (1)                                        [●]

(1) To be finalized upon determination of the Issue Price.
(2) Proportionate Issue related expenses borne by our Company would be included. Except for the listing          fee which will be borne by our Company, all expenses relating to the Issue will be borne by our Company      and the Selling Shareholder in proportion to the Equity Shares contributed to the Issue.

The proceeds of the Fresh Issue, after deducting the proportionate underwriting and issue management fees, selling commissions and other expenses associated with the Fresh Issue (the “Net Proceeds”), except for the listing fee which shall be paid by our Company, shall be utilised towards the following objectives (collectively, referred to herein as the “Objects”):

(i) Margin maintenance with stock exchanges;
(ii) Part repayment of term loan;
(iii) Investments into our Subsidiary, SMC Comtrade; and
(iv) General Corporate Purposes

We also believe that by listing our Equity Shares on nationally recognised stock exchanges, NSE and BSE, will further enhance our visibility and brand name, allow us currency for further capital raising and also provide liquidity to the existing shareholders.

The main object clauses of our Memorandum of Association of our Company and objects incidental to the main objects enable us to undertake our existing activities and the activities for which funds are being raised by us through this Issue.

Our Requirement of Funds and Schedule of Implementation and Deployment of Funds

We are a well-diversified financial services company in India offering services across brokerage (across the asset classes of equities (cash and derivatives), commodities and currency), investment banking, wealth management, distribution of third party financial products, research, financing, depository services, insurance broking and clearing services to corporate, institutional, high net worth individuals and other retail clients. As of September 30, 2012, we service our broking clients through a network of 43 branches and 2,521 registered sub-brokers and authorized persons spread in more than 500 cities and towns. We have also established an office in Dubai for brokerage and trading activities in that region.

On the basis of our current business plans, we intend to utilise the Net Proceeds for financing the Objects . We propose to deploy the Net Proceeds towards such identified activities in Fiscal 2013.
The details of the utilisation of Net proceeds are as per the table set forth below:

                                                                       (Rs. in crore)
 Particulars                           Utilisation                                                                                                                     

A.  Margin maintenance with stock exchanges               30.00


B.  Part repayment of term loan                                    10.00


C.  Investment into our Subsidiary, SMC Comtrade        10.00              

D.  General Corporate Purposes                                     [●]

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