Monarch Networth Capital rises on raising Rs 252 cr through MFs

Monarch Networth Capital rose 4.74% to Rs 325 after the company said that it has raised Rs 252 crore through Monarch Alternative Investment Fund (AIF) in its second category-3 AIF.

Monarch Networth Capital is the investment manager and sponsor of Monarch AIF.

The entire amount was raised from a set of ultra-high net worth individuals, corporates, and family offices. The first fund was launched in October 2020. The company is planning to foray into the mutual fund business.

Vaibhav Shah, MD of Monarch Networth Capital said, With this launch, we are moving a step closer to our aspiration of foraying into mutual fund business; the application will be made to SEBI in this financial year.

Meanwhile, in a separate filing the company said that it further plans to infuse Rs 1,000 crore in the next three years. This money is proposed to be utilized in newer businesses such as debt syndication, setting up a bond trading desk, enhancing the Sebi-approved fund-based activities, strengthening the existing business, and complete digitalization of retail broking.

The company added that it sees a huge gap between its broking capabilities and the ability to leverage the same through various fund-based / non-fund businesses.

Vaibhav Shah, commented, We want to stick to our ethos of 'value creation', and along the said lines, we wish to capitalize on our niche retail client base of over 3 lac clients through our well-curated and differentiated research services.

Monarch Networth Capital is predominantly engaged in share & stock broking, merchant banking, and mutual fund distributor.

The company's consolidated net profit fell 8% to Rs 12.43 crore on a 2.1% rise in total income to Rs 35.64 crore in Q1 FY23 over Q1 FY22.

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