Key Takeaways
- • Monarch Networth Capital launched its maiden Portfolio Management Services (PMS) scheme, delivering 8.81% outperformance versus benchmark since inception while the benchmark declined, strengthening the firm's position as a full-stack financial services platform.
- • The company raised Rs 300 crore through preferential share allotment at Rs 560 per share (8.5% discount to last traded BSE price), with lead investor Monarch Infraparks Pvt Ltd contributing Rs 99 crore and CEO Gaurav Bhandari investing Rs 25 crore.
- • Net profit surged 186% to Rs 123 crore in FY24 (from Rs 43 crore in FY23), with projected net worth reaching Rs 700 crore by September 2024, demonstrating accelerating profitability and capitalization.
- • The PMS scheme employs a sector-agnostic, research-driven stock selection process focused on identifying undervalued companies with strong cash flows, high return ratios, and scalable growth potential, anchored in Monarch's institutional research capabilities.
- • Monarch's three Alternative Investment Funds collectively manage over Rs 1,000 crore in assets, with the maiden AIF achieving a pre-tax CAGR of 23.5% post-fees before pre-closing in May 2023, establishing track record credibility for the new PMS offering.
Summary
Monarch Networth Capital, a Mumbai-headquartered integrated financial services firm, announced the launch of its maiden Portfolio Management Services scheme as part of a strategic expansion from its origins as an offline retail broking platform. The PMS launch represents a significant milestone in the company's transformation into a comprehensive financial powerhouse with verticals spanning investment banking, institutional research, Alternate Investment Funds, and portfolio management.
The newly launched PMS scheme has demonstrated measurable performance, delivering 8.81% outperformance against its benchmark since inception despite broader market headwinds that saw the benchmark decline. The strategy leverages Monarch's in-depth research capabilities to execute a sector-agnostic stock selection process targeting undervalued companies with strong cash flows, efficient capital allocation, and scalable growth potential. According to Managing Director Vaibhav Shah, the investment philosophy centers on identifying businesses with high return ratios and exceptional management pedigree, supported by a deeply research-driven and process-oriented approach designed to deliver sustainable, superior returns.
Concurrently, the company secured Rs 300 crore in equity capital through preferential share allotment priced at Rs 560 per share, representing an 8.5% discount to the last traded price on the Bombay Stock Exchange. Lead investor Monarch Infraparks Pvt Ltd committed Rs 99 crore, while CEO Gaurav Bhandari personally invested Rs 25 crore, signaling confidence from insiders and related entities. The board also approved a 1:1 bonus share issuance for existing shareholders, demonstrating capital efficiency and shareholder alignment.
Financial performance metrics underscore the company's growth trajectory. Net profit climbed 186% year-over-year to Rs 123 crore in FY24 from Rs 43 crore in FY23, while the company projects net worth will reach Rs 700 crore by September 2024. The proceeds from the fundraise will fund multiple strategic initiatives including Portfolio Management Services expansion, Mutual Fund license application, pre-IPO fund launches, margin trading scaling, and debt capital market division strengthening. Monarch's three existing Alternate Investment Funds collectively manage over Rs 1,000 crore in assets, with the maiden AIF delivering a 23.5% pre-tax CAGR post-all fees before pre-closing in May 2023, establishing institutional credibility ahead of the PMS launch.
The newly launched PMS scheme has demonstrated measurable performance, delivering 8.81% outperformance against its benchmark since inception despite broader market headwinds that saw the benchmark decline. The strategy leverages Monarch's in-depth research capabilities to execute a sector-agnostic stock selection process targeting undervalued companies with strong cash flows, efficient capital allocation, and scalable growth potential. According to Managing Director Vaibhav Shah, the investment philosophy centers on identifying businesses with high return ratios and exceptional management pedigree, supported by a deeply research-driven and process-oriented approach designed to deliver sustainable, superior returns.
Concurrently, the company secured Rs 300 crore in equity capital through preferential share allotment priced at Rs 560 per share, representing an 8.5% discount to the last traded price on the Bombay Stock Exchange. Lead investor Monarch Infraparks Pvt Ltd committed Rs 99 crore, while CEO Gaurav Bhandari personally invested Rs 25 crore, signaling confidence from insiders and related entities. The board also approved a 1:1 bonus share issuance for existing shareholders, demonstrating capital efficiency and shareholder alignment.
Financial performance metrics underscore the company's growth trajectory. Net profit climbed 186% year-over-year to Rs 123 crore in FY24 from Rs 43 crore in FY23, while the company projects net worth will reach Rs 700 crore by September 2024. The proceeds from the fundraise will fund multiple strategic initiatives including Portfolio Management Services expansion, Mutual Fund license application, pre-IPO fund launches, margin trading scaling, and debt capital market division strengthening. Monarch's three existing Alternate Investment Funds collectively manage over Rs 1,000 crore in assets, with the maiden AIF delivering a 23.5% pre-tax CAGR post-all fees before pre-closing in May 2023, establishing institutional credibility ahead of the PMS launch.
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