Shares of this micro-cap NBFC rose over 3 percent to Rs.280.50 per share after the company ventured into the Wealth Management sector alongside its merchant banking services.
Share Price Variation
In Thursday’s trading session, the share price of Prime Securities Ltd reached an intra-day high of Rs.280.50 per share from its previous close of Rs.271.50 apiece, gaining around 3.3 percent. The shares retreated since then and closed at Rs.277.00 per share.
Reason for the Rise
Prime Securities Ltd. (PSL) is broadening its presence in the financial services sector by entering the wealth management industry through its wholly-owned subsidiary, Prime Trigen Wealth Ltd. (PTWL). This strategic initiative seeks to capitalize on new growth opportunities with considerable scalability potential.
PTWL has appointed industry veterans Mr. Sailesh Balachandran and Mr. Maneesh Kapoor as Executive Directors, Founders, and Joint CEOs to lead its Wealth Management business.
The company will initially launch its services in NCR, Mumbai, Bangalore, and Chennai, with plans for gradual expansion into the top Tier 1 and Tier 2 wealth destinations throughout the country.
Management Commentary
In a joint statement, Maneesh Kapoor and Sailesh Balachandran highlighted “We are delighted to be part of the founding team of Prime Trigen Wealth. We keenly look forward to building a comprehensive, high-tech enabled, and RM-led wealth management practice dedicated to serving the rapidly growing HNI, Ultra HNI, and Family Offices across India. Furthermore, the synergy with Prime’s full-service investment banking offerings will enable us to deliver unique and unparalleled solutions to our clients.”
International Presence
Prime Securities has initiated the establishment of an international presence through strategic acquisitions. Its acquisition of Bridgeweave Limited underscores its intention to penetrate international markets, especially in technology-driven financial solutions.
Future Outlook
Prime Securities plans to enhance technological integration by leveraging AI and machine learning from Bridgeweave to improve service delivery and client engagement. The company aims to expand its wealth management services to cater to the increasing demand from high-net-worth individuals seeking sophisticated investment strategies.
Additionally, it will focus on sustainable growth by reducing operational costs and improving efficiency while maintaining profitability.
Financials
In the latest financial update, the company reported net sales of Rs.29 crore for Q1 FY25, reflecting a 38 percent increase from Rs.21 crore in Q1 FY24. Net profit surged to Rs.12 crore, an impressive 140 percent rise from Rs.5 crore in the same period last year.
Company Profile
Prime Securities Limited is a leading Indian financial services company specializing in investment banking, corporate advisory services, and non-banking financial services. Licensed by the Securities and Exchange Board of India (SEBI), the company operates under a Category-1 Merchant Banking License.
Written by – Siddesh S Raskar
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