IIFL securities AGM notes ~ Shareholder Awareness Program

Shareholder Awareness Program

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IIFL securities AGM notes

 

IIFL securities AGM highlights


IIFL securities AGM 2021




 Article published as on Tuesday, 6th July, 2021 at 4:00 p.m. 


    Here are the highlights:


    The meeting was started by CS Meghal Shah and then the chairman Speech by R. Venkatraman

    Here are the highlights

     

    The Chairman highlighted the financials and the business performance of the broking and investment banking business.

    The main developments were the acquisition of 1.1 million Demat accounts from Karvy stockbroking.

    And the company completed the buyback of 17 million shares at the cost of about a billion rupees (1.7 crore shares for 100 crores meaning an average price of around 55 to 60 rupees)


    After the speech, the resolutions were read out and now the Q&A session began


    Questions by speaker shareholders:


    Tushar Sodha: thanked and appreciated the investor service, presentation of financial statements, etc

    Lekha Shah:

    How are we engaging with our employees?

     

    Anil Parekh:

    How much will the acquisition of 11 lac Demat accounts from Karvy add to the revenue?

    We are present in 500 cities, how much is Tier 2 and 3 cities.

    Only 2 call centres any plans to increase the number

     

    Elizabeth Mascarenhas: advised more dividends should have been paid.

    Equity research reports should be shared with shareholders, also does the management have any plans for acquisition for the expansion.

    Do we have a Digi gold platform for investing? So do have a platform for foreign investment?

     

     

    Smita Shah:

    Bharat shah spoke and requested to delay the turn to last.

    (Smita Shah was attending another meeting… J you can make out from background voice)

     

    Smita Shah: also appreciated and admired the work of the management and secretarial department.

     

    Dinesh Bhatia: queries were already asked, so thanked the team for the opportunity to speak.

     

    Chairman’s reply


    Thanked for the blessing and kind words spoken by the shareholders.

     

    To Mr. Sodha: explained about the Open API platform and the Chatbot

     

    How are we engaging with employees? Chairman answered in how many ways they ensure that they are engaged with their employees.


    The number of branches? 500 branches – most of them through sub-brokers

    As of now, 2 call centres no plans to expand the call centres

    Justified the dividend pay-out stating that if we add the buyback amount then the pay-out ratio goes up.


    Whether our research can be disseminated  to all our shareholders?

    Chairman humbly requested to open an account with IIFL securities, so that they can provide it easily.

    Currently, cryptocurrency is illegal as per their knowledge hence not allowing crypto trading.

    Tied up with Stock-al to all allow investors to invest in US stocks.

     

    No plans to acquire right now, but when the opportunity comes they shall consider it.

     

    With this, the meeting ended at around 12:55 p.m.

     

     

    My personal views:

     

    The number of questions was short, also I missed out on the interaction with the management. The main reason I am positive about this business is its “AAA” product. Nothing much was talked about it.

     

    Do I still believe in the potential of this stock as mentioned earlier?

    (In this article here)

     

    The answer is yes!

     

     

    Anyone interested to watch the proceedings can watch it here

    Link for the AGM click here



    As per end of day data of 6th July

    Price                        = 76.65 Rs                               market capitalisation             = 2,322.15 Crores

    P/E ratio                  = 13.42                                    price to Book ratio                  = 2.90

    EPS                          = 5.71 Rs                 



     

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