SMC Global Securities Limited has made a significant move in the market by acquiring a 14.51% stake in Oval Projects Engineering Limited, a rising player in the infrastructure services sector. This strategic acquisition comes as part of SMC Global's role as the Designated Market Maker for Oval Projects' initial public offering (IPO).

Acquisition Details

The acquisition by SMC Global Securities comprises a total of 30,12,800 equity shares, representing 14.51% of Oval Projects Engineering's total equity share capital. This substantial stake was acquired through two primary methods:

1. Pre-listing Allotment: 3,04,000 shares were allotted to SMC Global prior to the listing of Oval Projects Engineering, as part of its role as the Designated Market Maker.

2. Open Market Purchase: The remaining 27,08,800 shares were acquired through open market transactions at an average price of Rs. 85.25 per share.

About Oval Projects Engineering

Oval Projects Engineering Limited is an infrastructure services company that specializes in providing engineering, procurement, and construction (EPC) services, as well as operations and maintenance (O&M) services. The company primarily caters to the Oil & Gas sector across India.

Headquartered in Agartala, Tripura, Oval Projects Engineering has shown impressive growth over the past few years. The company's financial performance reflects its expanding footprint in the infrastructure sector:

Market Making Commitment

As the Designated Market Maker, SMC Global Securities has committed to a three-year market making period for Oval Projects Engineering's shares, starting from the listing date. This role involves providing liquidity and stability to the newly listed stock by agreeing to buy and sell the company's shares as needed.

Transaction Details

It's worth noting that this acquisition does not fall under the category of a related party transaction. The shares were acquired through a combination of pre-IPO allotment and open market purchases, with no regulatory approvals required for the transaction.

In a related development, Moneywise Financial Services Private Limited, a wholly-owned subsidiary of SMC Global Securities, was initially allotted 6,56,000 equity shares (3.16%) of Oval Projects Engineering. However, Moneywise Financial Services sold its entire holding.

Implications and Outlook

This strategic move by SMC Global Securities underscores its commitment to supporting emerging companies in the infrastructure sector. As a Designated Market Maker, SMC Global's involvement is expected to enhance liquidity and potentially stabilize the trading of Oval Projects Engineering's shares in the initial phases of its public listing.

For Oval Projects Engineering, this development marks a significant milestone in its corporate journey, potentially opening doors to increased market visibility and investor interest. As the company continues to expand its operations in the crucial Oil & Gas infrastructure sector, the support of an established financial services firm like SMC Global could prove beneficial for its growth trajectory.

SMC Global Securities Limited (ISIN: INE103C01036) has reported a significant improvement in profitability for the first quarter, despite facing regulatory headwinds and market challenges. The company's consolidated revenue showed a modest quarter-on-quarter growth of 0.90% to ₹425.10 crores, while its profit after tax (PAT) surged by an impressive 632% to ₹30.00 crores compared to the previous quarter.

Financial Highlights

Segment Performance

Broking, Distribution, and Trading

• Revenue: ₹274.90 crores
• Added over 26,000 new clients in Q1
• Wealth advisory AUM reached ₹1,007.00 crores (6.20% YoY increase)
• Mutual fund AUM rose to ₹4,519.00 crores (8.20% YoY increase)
• Added 1,095 new SIPs in Q1

Financing

• Revenue: ₹51.00 crores (25.00% QoQ growth)
• NBFC AUM: ₹1,191.00 crores
• GNPA: 3.90%
• NNPA: 2.60%

Insurance Broking

• Revenue: ₹116.00 crores
• Total insurance policies sold: Over 232,000 in Q1

Operational Highlights

SMC Global Securities continues to expand its presence across India:

• Network of 2,137 authorized persons across 412 cities
• 6,811 financial distributors
• NBFC operations active through 42 branches across 9 states
• Insurance vertical operating through 8 branches nationwide, supported by 16,102 POS agents and 356 MISPs

Management Commentary

Subhash Chandra Aggarwal, Chairman and Managing Director of SMC Group, commented on the results: "Despite facing regulatory headwinds, we are pleased to report quarter-on-quarter Revenue & EBIT growth across Broking, Distribution & Trading and Financing business segments. While Q1 witnessed some pressure due to external factors, we remain confident of a revival across all verticals as market conditions normalize and investor sentiment improves."

Future Outlook

The company remains optimistic about its growth prospects:

• Targeting to double mutual fund AUM to ₹8,000.00 crores within one year
• Focusing on retail loans in the NBFC segment, particularly in the LAP (Loan Against Property) portfolio
• Expecting improvement in the insurance broking segment in coming quarters
• Launched a discount broking subsidiary, Stoxkart, to compete in the evolving market landscape

SMC Global Securities is adapting to the changing regulatory environment and market conditions by investing in technology, expanding its product offerings, and focusing on customer-centric growth strategies. The company's diversified business model and nationwide network position it well for sustainable long-term growth in the Indian financial services sector.