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MIRA INFORM REPORT
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Report No. : |
507322 |
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Report Date : |
08.05.2018 |
IDENTIFICATION DETAILS
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Name : |
ICICI PRUDENTIAL MUTUAL FUND |
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Registered
Office : |
One BKC, A-Wing, 13th Floor, Bandra-Kurla Complex, Mumbai – 400051, Maharashtra |
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Tel. No.: |
91-22-26525000 |
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Country : |
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Financials (as
on) : |
31.03.2017 |
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Date of
Incorporation : |
1993 |
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Unit Capital : |
INR 76899.406 Million |
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IEC No.: |
Not Available |
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TIN No.: |
Not Available |
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PAN No.: [Permanent Account No.] |
AAAAI0038F |
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Service Tax Code
(Registration Number) : |
AAAAI0038FST001 |
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Legal Form : |
Trust |
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Line of Business
: |
Providing mutual fund, portfolio management services, advisory
services, real estate investments Services. [From Indirect Sources] |
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No. of Employees
: |
Information denied by the management |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A++ |
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
ICICI Prudential Mutual fund is a part of ICICI prudential Asset Management Company. It is a joint venture between ICICI Bank (51%), one of the largest commercial banks in India and Prudential Plc (49%), one of the UK’s largest players in the financial services sector. ICICI Prudential AMC is registered with the SEBI to act as an investment manager for the schemes of ICICI Prudential Mutual Fund. Presently, ICICI Prudential AMC is India’s largest fund house in terms of Assets under Management (AUM). The average asset under management of ICICI Prudential Asset Management Company Ltd for the quarter ending March 2018 stood at INR 30,57,390 million. Rating takes into consideration the subject’s healthy financial risk profile along with sound capital structure and high credit quality of the underlying assets of the schemes. Rating also takes into account the strong financial and product support provided from its parent company and extensive experience of the fund management team. Payments terms are reported to be regular and as per commitments. In view of aforesaid, the subject can be considered good for normal business dealing at usual trade terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
EXTERNAL AGENCY RATING
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Rating Agency Name |
CARE |
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Rating |
Long term Rating= AAA |
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Rating Explanation |
Highest degree of safety and carry lowest
credit risk. |
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Date |
30.03.2018 |
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Rating Agency Name |
CARE |
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Rating |
Short Term Rating= A1+ |
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Rating Explanation |
Very strong degree of safety and carry
lowest credit risk. |
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Date |
30.03.2018 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2018.
BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS
Subject’s name is not listed as a Sick Unit in
the publicly available BIFR (Board for Industrial & Financial
Reconstruction) list as of 08.05.2018
IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS
Subject’s name is not listed in the publicly
available IBBI (Insolvency and Bankruptcy Board of India) list as of report
date.
INFORMATION DENIED
Management Non-Cooperative (91-22-26525000 / 26852000)
LOCATIONS
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Registered Office : |
One BKC, A-Wing, 13th Floor, Bandra-Kurla Complex, Mumbai – 400051, Maharashtra, India |
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Tel. No.: |
91-22-26525000 |
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Fax No.: |
91-22-26528100 |
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E-Mail : |
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Website : |
MANAGEMENT
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Name : |
Mr. Nimesh Vipinbabu Shah |
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Designation : |
Managing Director and Chief Executive Officer |
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Name : |
Mr. S. Naren |
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Designation : |
Chief Investment Officer |
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Name : |
Mr. Rahul Goswami |
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Designation : |
Chief Investment Officer |
BUSINESS DETAILS
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Line of Business : |
Providing mutual fund, portfolio management services, advisory
services, real estate investments Services. [From Indirect Sources] |
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Products / Services
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·
Providing Mutual Fund ·
Portfolio Management Services ·
Advisory Services ·
Real Estate Investments |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
Not Divulged |
PRODUCTION STATUS – (NOT AVAILABLE)
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
Information denied by the management |
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Bankers : |
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Auditors : |
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Name : |
S R Batliboi and Company LLP Chartered Accountants |
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Address : |
Mumbai, Maharashtra, India |
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Memberships : |
Not Available |
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Collaborators : |
Not Available |
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Sponsor
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ICICI Bank Limited |
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Scheme’s
Asset Manager : |
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ICICI Prudential Asset Management Company Limited |
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Trustee
of the Fund : |
·
ICICI Prudential Trust Limited |
CAPITAL STRUCTURE
AS ON 31.03.2017
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Unit Capital : |
INR 76899.406 Million |
FINANCIAL DATA
FINANCIAL DETAILS FILE ATTACHED
LOCAL AGENCY FURTHER INFORMATION
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Sr. No. |
Check list by
info agents |
Available in
Report (Yes/No) |
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1 |
Year of establishment |
Yes |
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2 |
Constitution of the entity -Incorporation
details |
Yes |
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3 |
Locality of the entity |
Yes |
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4 |
Premises details |
No |
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5 |
Buyer visit details |
-- |
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6 |
Contact numbers |
Yes |
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7 |
Name of the person contacted |
No |
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8 |
Designation of contact person |
No |
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9 |
Promoter’s background |
Yes |
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10 |
Date of Birth of Proprietor / Partners / Directors |
No |
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11 |
Pan Card No. of Proprietor / Partners |
No |
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12 |
Voter Id Card No. of Proprietor / Partners |
No |
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13 |
Type of business |
Yes |
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14 |
Line of Business |
Yes |
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15 |
Export/import details (if applicable) |
No |
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16 |
No. of employees |
No |
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17 |
Details of sister concerns |
Yes |
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18 |
Major suppliers |
No |
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19 |
Major customers |
No |
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20 |
Banking Details |
No |
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21 |
Banking facility details |
No |
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22 |
Conduct of the banking account |
-- |
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23 |
Financials, if provided |
Yes |
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24 |
Capital in the business |
Yes |
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25 |
Last accounts filed at ROC, if applicable |
Yes |
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26 |
Turnover of firm for last two years |
Yes |
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27 |
Reasons for variation <> 20% |
-- |
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28 |
Estimation for coming financial year |
No |
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29 |
Profitability for last two years |
Yes |
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30 |
Major shareholders, if available |
Yes |
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31 |
External Agency Rating, if available |
Yes |
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32 |
Litigations that the firm/promoter
involved in |
-- |
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33 |
Market information |
-- |
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34 |
Payments terms |
No |
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35 |
Negative Reporting by Auditors in the
Annual Report |
No |
PRESS RELEASE:
IS ICICI PRU MF
BUYING I-SEC IPO SHARES RIGHT?
April 25 2018
Sebi has sought details of a large investment made by ICICI Prudential
mutual fund in ICICI Securities’s IPO. Team Mint Money asks experts about their
views on whether a line has been crossed
Shriram Subramanian, founder and MD, InGovern
Research Services
If the allegations that there were phone
calls made to ICICI (Prudential) mutual fund to bail out the ICICI Securities
IPO (initial public offering) were true, it would be gross misconduct on the
part of the fund house. (The IPO started on 22 March.)
While the percentage holding and the exposure
may be within the stipulated norms, as data shows, ICICI Prudential mutual fund
is the largest fund house holder of ICICI Securities. The conflict of interest
is apparent, if the issue was subscribed based on phone calls to bail out the
issue, rather than an independent decision.
The fund management company should act in the
interest of the unit-holders, and it risks its reputation if it has acted
otherwise.
Srikanth Bhagavat, MD, Hexagon Capital
Advisors
When taking such a call, the institution or
fund manager should take extra caution. If possible, such takes should be
avoided, because people are bound to make conclusions which may not be good.
But it’s a fund manager’s call where to invest and how much, and if the fund
manager has a conviction on a particular investment and she believes that it
could be profitable for investors, I don’t think there should be any issue. I
have not studied the ICICI Securities IPO, so I won’t comment on its investment
worthiness.
Shyam Sekhar, founder, ithought
This is not a corporate governance issue
because legally there is no provision that prohibits an asset management
company from investing in the IPO of its sister concern.
In fact, ICICI Prudential AMC also invested
in the IPO of ICICI Prudential Life Insurance Co., which listed marginally
above the issue price.
The issue is more about fair pricing and most
IPOs are overpriced. This is because they are able to manage the ecosystem by a
limited IPO of 10%. This should be done away with and all companies that want
to list need to list at the maximum threshold decided by Sebi. As far as the
ICICI Pru AMC buying into the IPO of ICICI Securities is concerned, I think we
are rushing to a judgment. The jury is still out on this.
ICICI SECURITIES IPO
UNDER SEBI SCANNER
April 24 2018
ICICI Securities had to cut its IPO size to INR 35200.000 million from
the original target of INR 40170.000 million because of poor investor interest
Mumbai: The stock market
regulator Securities and Exchange Board of India (Sebi) has sought details of a
large investment made by ICICI Prudential Mutual Fund in the flop IPO of
affiliate ICICI Securities Limited, two people aware of the matter said.
ICICI Securities had to cut its IPO size to
INR 35200.000 million from the original target of INR 40170.000 million because
of poor investor interest. Of this, a large chunk was bought by ICICI MF.
“Queries have been sent to exchanges,
merchant bankers and Registrar and Transfer Agents. This is based on the concern
that a related party, ICICI MF, has taken a massive exposure to ICICI
Securities during its IPO,” said one of the two people cited above. Both
declined to be identified.
The queries were sent last week, said the
second person, adding that “exchanges are compiling the data and would be
responding to the regulator’s queries this week”.
Cogencis first reported on 13
April that ICICI Prudential was the largest buyer in the ICICI Securities share
sale.
ICICI Securities and a spokesperson for BSE
declined to comment. Emails sent to Sebi and NSE were not answered till press
time.
To be sure, ICICI MF’s investment in ICICI
Securities is in line with Sebi regulations and the asset management company’s
investment mandate. However, Sebi can initiate an investigation to ascertain if
the fund house is in violation of the model code of conduct prescribed in
Sebi’s norms for mutual funds.
In an emailed response, an ICICI MF
spokesperson said, “All our investments are carried out in line with the
regulatory guidelines and established processes. The quantum of our investments
that has been made in the IPO is in line with investments made in other primary
issues where we have invested.”
ICICI MF is ICICI Securities’ largest public
shareholder with 3.82% stake, according to the company’s shareholding pattern
on BSE. Other major public shareholders are HDFC Mutual Fund at 1.2% and
Reliance Mutual Fund at 1.04%.
High valuations were seen as the reason for
investors’ indifference to ICICI Securities, the brokerage and investment
banking arm of ICICI Bank. The IPO had opened amid allegations of impropriety
against the bank’s CEO Chanda Kochhar.
On the day of listing, the stock crashed
14.4% from the issue price of 520 to close at INR 445.05. On Monday, it closed
at INR 423.35 on the BSE, 18.6% below the issue price.
“ICICI MF has put in more than INR 6000.000
million in the IPO. More than half of QIB (qualified institutional buyer) quota
was subscribed by the AMC,” the second person said.
“If ICICI AMC knew that the issue was
undersubscribed, then they are wholly responsible for the decision. But in case
the bankers did not go back and ask ICICI AMC whether they want to reduce their
bid amount given the issue is undersubscribed, then the bankers need to answer
why they did not keep the investors informed,” said Amit Tandon, managing
director at proxy advisory firm Institutional Investor Advisory Services.
“Ethically, it can be questioned that this
seems like a bailout of a sister company. However, the fund house can justify
this by saying that they have a long-term view on the company,” said J.N.
Gupta, co-founder and managing director of Stakeholders Empowerment Services, a
proxy advisory firm.
According to a person familiar with the development,
ICICI MF’s investment in ICICI Securities is based on a long-term view on the
company. “Digital space is attractive and by that logic, ICICI Securities and
ICICI Direct. ICICI Securities also looks good in terms of long-term
investment,” this person said on condition of anonymity.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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INR |
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US Dollar |
1 |
INR 66.77 |
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|
1 |
INR 90.58 |
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Euro |
1 |
INR 79.97 |
INFORMATION DETAILS
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Information
Gathered by : |
SPR |
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Analysis Done by
: |
VVK |
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Report Prepared
by : |
NKT |
SCORE FACTORS
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
NO |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
|
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.