Money Matters Financial raided by Central Bureau of Investigation
Moneylife Digital Team 24 November 2010

Money Matters Financial Services Ltd. which raised Rs445 crores in November from four top foreign investors, has been under a CBI raid since last night

Money Matters Financial Services Ltd. (MMFSL), a Mumbai-based non-banking finance company (NBFC) was raided by a large team of officials from the Central Bureau of Investigation investigating irregularities regarding market-related transactions attached to politicians.

Money Matters, until recently a small-time NBFC into debt market financial services company (debt syndication, debt placement) managed to raise a stupendous Rs445 crore at Rs625.25 per share in late October through Qualified Institutional Placement (QIP) from top investors to supposedly to grow its asset financing business such as short-term corporate funding, structured product funding, margin funding and acquisition funding to corporates. 

The deal had raised a lot of eyebrows. At a time when NBFCs and debt market brokers have been struggling to grow their businesses, it was amazing that a company like Money Matters with little pedigree could raise Rs445 crores from four renowned institutional investors Morgan Stanley, Wellington, Fidelity and GMO. These investors picked up as much as 60% of the placement. The lead manager to the issue was India Infoline.  

Rajesh Sharma is chairman and managing director of MMFSL. The CBI is apparently investigating whether MMFSL was involved in deals with political connections. Recently, IL&FS Milestone Fund had picked up a 74% stake in HCC Park, a 1.8 million square feet commercial property located in Vikhroli in Mumbai for around Rs 575 crore. Interestingly, Money Matters Financial Services Ltd was the sole advisor to the deal. HCC's promoter Ajit Gulabchand, who is setting up a controversial township called Lavasa near Pune, is known in market and business circles to be close to Agriculture minister Sharad Pawar.

The stock of Money Matters which was languishing at Rs7 in late 2007, jumped to around Rs120 in early January 2008 and fell to Rs50 in April 2009. Since then, it rose vertically all the way to Rs787 in the last week of October just after the QIP. Yesterday, the stock was quoted at Rs663.90.

What is today Money Matters, was incorporated as Daiwa Securities Limited on November 15, 1994. The Company’s name was changed to Dover Securities Limited on May 19, 1999 with its registered office at 501, Shubham, 1, Sarojini Naidu Sarani, Kolkata-70001. The registered office was shifted to 1-B, 1st Floor, Court Chambers, 35, Sir Vithaldas Thackersey Marg, New Marine Lines, Mumbai-400020. In March 2008, Dover bought over unlisted Money Matters Securities P Ltd. On 6th October 2008, the name was changed from Dover Securities Limited to Money Matters Financial Services Limited. 

1 decade ago
company ne daiwa securities ke bahut se shareholder k share ko company name change ka sticker nahi bheja hai.aur na hi koi information di hai. ???????? pata nhi kyo ?? company ki soch kya hai. daiwa ke share holder ko money matter ka share milna hi chahiye.
Suman Mukherjee
1 decade ago
Good report, as usual by Money Life which exposes the underbelly of the financial markets. However, what I feel is that since the company was able to raise mammoth funds as high as Rs.445 cores (against the current market cap of Rs.441.61 crores) from four renowned institutional investors Morgan Stanley, Wellington, Fidelity and GMO; who picked up as much as 60% of the placement, there chould be something unique in the business model of the company. Who knows??!!
The company is to declare results Next Week tentatively. It seems the scrip is beaten down more than it deserves and the scrip (Money Matter Financial Services Ltd) is expected to cross Rs.250 comfortably in the days to come.
Zoher Doctor
1 decade ago
Fixers must be disclosed and punished. Hats off to Media for disclosures.
1 decade ago
One of the leading private sector banks has overexposed itself by financing various Infrastructure projects including that of LAVASA. CBI should conduct the inquiry against the Ex DMD and other senior officials including the present DMD, Executive Directors and President - Risk for their vested interest in financing the project and holding disproportionate wealth they have accumulated in their family members name.

Replied to Ax comment 1 decade ago
Dear Ax, Axis Bank is having exposure in HCC, LAVASA, HDIL, DB, Suzlon and hence involvment of Money matters and the Directors could not be ruled out. And i feel that is why Axis Bank is down by 2% where as other private banks are up
R Balakrishnan
1 decade ago
There are hundreds of 'fixers' who are needed to grease the wheels of finance and industry. Some are big name accounting firms, some are brokers, and many operate out of suitcases. These guys must have rubbed someone badly to actually get caught.
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