Ventura Securities Ventures into Alternative Investments with New Fund and LLP

Ventura Guaranty Limited's subsidiary, Ventura Securities Limited, is set to expand its footprint in the alternative investment space. The company's Board of Directors has approved plans to sponsor an Alternative Investment Fund (AIF) Category II and incorporate a new Limited Liability Partnership (LLP) to serve as its investment manager.

Key Developments

Alternative Investment Fund Sponsorship: Ventura Securities Limited will sponsor an AIF Category II, marking its entry into the alternative investment sector.
New LLP Formation: The company will incorporate 'Ventura Alternative Investment Advisor LLP' to act as the investment manager for the AIF.

LLP Structure and Objectives

The newly formed LLP will have the following structure and objectives:

Aspect	Details
Name	Ventura Alternative Investment Advisor LLP (subject to approval)
Partnership Structure	Ventura Securities Limited: 99%, Hemant Majethia: 1%
Authorized Representative	Hemant Majethia or his nominee
Primary Objectives	- Act as investment advisor and manager - Provide financial and management consulting - Serve as asset manager for alternative investment funds

Regulatory Compliance and Timeline

The completion of this venture is subject to obtaining necessary statutory and regulatory approvals. The exact timeline for implementation will depend on these approval processes.

Financial Considerations

The partnership capital will be contributed as per agreement at arm's length.
The LLP will be appropriately capitalized in accordance with applicable regulations.

Strategic Implications

This move signifies Ventura Securities' strategic expansion into the growing alternative investment market. By establishing an AIF and a dedicated investment management LLP, the company aims to diversify its offerings and tap into new revenue streams within the financial services sector.

The venture into alternative investments could potentially enhance Ventura Securities' portfolio of services, allowing it to cater to a broader range of investor needs and preferences in the evolving Indian financial landscape.

As the alternative investment space continues to gain traction among sophisticated investors, Ventura Securities' entry into this segment may position it to capitalize on emerging opportunities in the market.

Investors and market participants will be keenly watching how this new venture unfolds and its potential impact on Ventura Securities' growth trajectory in the coming years.

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Ventura Guaranty , a prominent financial services company, has released its unaudited consolidated financial results for the first quarter ended June 30. The company reported a significant decrease in profit compared to the same period last year, reflecting the challenging market conditions faced by the financial sector.

Financial Performance

The consolidated revenue from operations for Q1 stood at Rs 5,945.07 crore, marking a decline of 20.39% from Rs 7,468.09 crore in the corresponding quarter of the previous year. The company's net profit attributable to owners decreased substantially to Rs 524.28 crore, compared to Rs 1,706.11 crore in the same period, representing a 69.27% drop.

Key financial highlights for Q1:

Particulars (in Rs crore)	Q1 Current	Q1 Previous	YoY Change
Revenue from Operations	5,945.07	7,468.09	-20.39%
Net Profit (Owners)	524.28	1,706.11	-69.27%
Earnings Per Share (Rs)	16.41	53.40	-69.27%

The consolidated earnings per share (EPS) for the quarter decreased to Rs 16.41, down from Rs 53.40 in the same quarter last year.

Segment Performance

Interest Income: Rs 2,052.65 crore
Brokerage Income: Rs 3,382.78 crore
Other Fees and Commission: Rs 456.74 crore

Auditor Reappointment

In a separate announcement, the Board of Directors approved the reappointment of M/s. G. K. Choksi and Co., Chartered Accountants, as the statutory auditors of the company. The reappointment is for a term of five years, from the conclusion of the 41st Annual General Meeting (AGM) to the 46th AGM, subject to shareholder approval.

M/s. G.K. Choksi & Co., established in 2004, brings extensive experience in audit, taxation, and advisory services. The firm's reappointment underscores Ventura Guaranty's commitment to maintaining high standards of financial reporting and corporate governance.

Conclusion

While the quarter's results reflect a challenging period for Ventura Guaranty, the company's diverse revenue streams and established market presence position it to navigate the current market conditions. The financial results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting. The statutory auditors have expressed an unmodified review opinion on the financial results for the quarter.