introduction to indiabulls

5/23/2018 Introduction to Indiabulls

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INTRODUCTION TO INDIABULLS

Indiabulls are India's leading retail financial services company with over 414 locations in more than

124cities.

In middle of 1999, when e-commerce was just about starting in India there was dotcom boom, there were

a lot of dotcoms coming into being, lot of venture capitalists were funding the dotcoms business but none of the

dotcom had any revenue model so the scope of a dotcom business was immense. Indiabulls came into existence

to take advantage of this. The three promoters got together and took over a defunct brokerage company.

Orbis Securities- the whole idea was to get a brokerage license and a membership of the stock exchange. This

brokerage firm was restarted and it started making miniscule amount of revenue for the companyit basically

catered to the High Net worth Individuals. Immediately after this the venture capitalists were contacted. In this

there were several models, which were discussed including involving a strategic investor. Initially the company

was promoted as a dotcom company. The promoters chose the famous Charles Schwab model, which perfectly

addressed their need to have the business on a technology platform. The idea was that since it worked in other

parts of the world, it would work here also. The company thus had clear-cut revenue model. It was very clear in

the minds of the promoters that revenue was very important. Profitability is the key to the entire thing. Sameer


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Gehlaut and his close IIT Delhi friend Rajiv Rattan got together and bought a defunct securities company with a

NSE membership and started offering brokerage services. A Few months later, their friend Saurabh Mittal also

joined them. By December 1999, the company embarked on its journey to build one of the first online platforms

in India for offering Internet brokerage services. In January 2000, the 3 founders incorporated Indiabulls

Financial Services and made it as the flagship company.

In mid 2000, Indiabulls Financial Services received venture capital funding from Mr. L.N. Mittal & Mr. Harish

Fabani. In late 2000, Indiabulls Securities, a subsidiary of Indiabulls Financial Services started offering online

brokerage services and simultaneously opened physical offices across India. By 2003, Indiabulls securities had

established a strong pan India presence and client base through its offices and on the Internet.

In September 2004, Indiabulls Financial Services went public with an IPO at Rs 19 a share. In late 2004,Indiabulls Financial Services started its financing business with consumer loans. In March 2005, Indiabulls

Properties Private Ltd, a subsidiary of Indiabulls Financial Services, participated in government auction of

Jupiter Mills, a defunct 11-acre textile mill owned by NTC in Lower Parle, Mumbai. Indiabulls Properties private

Ltd won the mill in auction and that purchase started Indiabulls real estate business. A few months later,

Indiabulls Real Estate company Pvt. ltd bought Elphinstone mill in Lower Parel, another textile mill auctioned by

NTC.

With real estate business gaining size, Indiabulls Financial Services demerged the real estate business under

Indiabulls Real Estate and each shareholder of Indiabulls Financial Services received additional share of

Indiabulls Real Estate through the demerger. Subsequently, Indiabulls Financial Services also demerged

Indiabulls Securities and each shareholder of Indiabulls Financial Services also received a share of Indiabulls

Securities.

In year 2007, Indiabulls Real Estate incorporated a 100% subsidiary, Indiabulls Power, to build power plants and

started work on building Nasik & Amravati thermal power plants. Indiabulls Power went public in September

2009.

Today, Indiabulls Group has a net worth of rs16,796 Crores & has a strong presence in important sectors like

financial services, power & real estate through independently listed companies and Indiabulls Group continues

its journey of building businesses with strong cash flows.


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BUSINESS LIFE CYCLE OF INDIABULLS

Fig: 1

The business life cycle is a model that enables businessmen to identify the level of performance at which their

business is operating and to determine exactly what needs to be done to move to the next level.

The startup of Indiabulls

Indiabulls was in start up phase in the year 1999. Sameer Gehlaut, Rajiv Rattan and bought a defunct securities

company with NSE membership and started brokerage services. Saurabh Mittal joined the founders.

-The founders were usually involved in running the business.


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-The primary emphasis was on generating and selling offline brokerage services.

-There was less staff with modest pay in the industry, which provided personalized services.

The rapid growth stage

Indiabulls success geared up quite early, within one year of its inception in 2000.

-Indiabulls Financial Services received venture capital funding from Mr. L. N. Mittal and Mr. Harish Fabani and

started online brokerage services.

-It opened many physical offices all across the country thereon and made pan India presence.

- Went public in 2004 (IPO was Rs. 19 per share) and also started providing customer loan in the same year.

-Became a private ltd. in the year 2005. Participated in government auction and bought Jupiter mills to start its

real estate business, and so on.

-In 2007, started Power Indiabulls.

Indiabulls by this time had a huge customer base, with wide number of physical offices. Its sales and demand

increased and it made its presence greatly visible in the financial and other markets.

Maturity stage

Indiabulls is still in the process of reaching the maturity stage. Its financial services and signature account

services are in their boom phase and are expected to reach there the earliest. With its current pace of

developments, expanded and loyal customer base, constant research and development, and other initiatives

Indiabulls is sure to reach the maturity stage as a market leader very soon. And so will increase its profitability

and side-by-side will its competition in the market.

Decline/Re-birth

With an upsurge in demand for financial services. NBFCs like Indiabulls have a great opportunity to develop

and expand in the market with its current potentials and probably will never reach this stage unless it gives up to

its competitors in the maturity stage.


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JOURNEY OF INDIABULLS

Fig: 2


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NDIABULLS GROUP OF COMPANIES

Fig: 3

COMPANY FINANCIALS

Total group net worth: Rs.16,844 Crs Total group PAT for FY 10-11: Rs 944 Crs Total group capital expenditure: Rs 6,200 CRs (US $ 1.4 bn) capex in financial year 10-11. Planned

capex of 29000 (us $ 6.5 bn) in the FY 2014-2015.

Focus on execution and on the ground results translating into profits. For its ongoing projects Indiabulls groups customers 385 MTs of steel, 550 MTs of cement, and 1700

CUM of RMC on daily basis.

Creating value for shareholders: Dividend payout of 232 Crs in FY 10-11.


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INDIABULLS IS A LEADING FINANCE COMPANY

Fig: 4

ASSET GROWTH

Fig: 5

Assets have grown at a quarterly average of Rs. 2000 Crs, over last 9 quarters with a decrease in non-performing assets.

Long duration mortgage loans have lead to steady asset growth and increase in Net Asset Income.


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Company continues to grow its branch networks and now has 170 branches across the country. Company has well trained in house direct sales team, over 1300 people to promptly attend to

prospective customers.

Conclusion

The basic objective is to analyze the awareness among customers for internet Trading in INDIA. It gives

direction to research tools, research types and techniques. Although the findings reveal that people know about

the services but still many people are unaware and many of them are non users so the companies should by

promotion try to retain the customers. Companies should look forward to have some tieups with other banks to

increase the service base. The perceptions of people about share markets are very strong. But they can beinfluenced, if not completely changed.

The reason people prefer staying away from the share markets is lack of confidence - about their own

understanding of the market and the very nature of the market.

The fact that stock markets themselves are volatile and wide open to changes in external forces makes it much

more difficult for people to consider them as an investment alternative.

The right kind of campaigning directed towards increasing the awareness of people will get new customers. But

more than that, this campaign will help retain customers, which is the key to staying ahead in the market.

Indiabulls Securities is currently one of the biggest broking houses in the country and its strategies to penetrate

further into the market will certainly take it way ahead of its competitors.

Indiabulls, the young bull on the run, within some years of its inception has established itself as a business super

brand. The company which began as a simple brokerage firm has now spread its wings in real estate, home loans,

power, etc.

The arch of the bull, Indiabulls Financial Services Limited (IBFSL) which is the flagship company of the group,

offers consumer finance, including secured and unsecured personal loans; commercial vehicle and tractor

financing; loan against property and housing loans; retail IPO financing; loans against shares; and commercial

credit to small and medium scale industries.


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Breaking free, Indiabulls Securities Limited, (ISL) before its demerger in 2008, was a subsidiary of IBFSL. ISL

provides securities brokerage services including equities, futures, commodities, and options; depositary services;

research services; insurance, initial public offering (IPO), and mutual fund distribution.

Services of Indiabulls are available on all phones except on i-phones, which is in trend now.Indiabulls should go

for aggressive advertising, as most of its products and the brand itself is not much advertised.

REFERENCES

Sites:

a. www.indiabulls.comb. www.secgov/investor/pubs/financialnavigating.html c. www.quickmba.com/strategy/matrix/bcgd. www.smallbusiness.wa.gav.au/business-life-cycle e. www.valueline.com/stock/industry

Total words 1575
http://www.secgov/investor/pubs/financialnavigating.htmlhttp://www.secgov/investor/pubs/financialnavigating.htmlhttp://www.quickmba.com/strategy/matrix/bcghttp://www.quickmba.com/strategy/matrix/bcghttp://www.smallbusiness.wa.gav.au/business-life-cyclehttp://www.smallbusiness.wa.gav.au/business-life-cyclehttp://www.valueline.com/stock/industryhttp://www.valueline.com/stock/industryhttp://www.valueline.com/stock/industryhttp://www.smallbusiness.wa.gav.au/business-life-cyclehttp://www.quickmba.com/strategy/matrix/bcghttp://www.secgov/investor/pubs/financialnavigating.html

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