Equity research and analysis of a) Empire Finance b) Bajaj Auto Finance Limited; ICFAI-SRC

Abstract

The company was set up in 1983 by the Malthotras and was incorporated as a private limited company. In 1984 it was made a public limited company. It commenced its activities in Feb i985.In the year 1986 it had it’s maiden issue of 2 crores. It was started basically for the purpose of corporate leasing and hire purchase. Even now, this unit contributes the maximum to the turnover. other activities include bill discounting which was. started in 1987, short term corporate finance fixed deposit mobilisation, merchant banking, portfolio management services, finance against securities, Auto loan(started in 1989), corporate advisory services. Their activities are well supported by a corporate research department. 7 Tt also has a subsidiary by the name of Empire Credit Limited. The NSE card of the company is being transferred in the name of this campany along with the QTC card so that it can concentrate on stock broking activities. The company has traditionally been active in fund-based activities. Here also corporate leasing and bills discounting were it’s major bread winners. But now with the squeezing of margins in these activities it is moving inte fee-based activities like merchant banking(category_1 merchant banker status in 1992) and corporate advisory services. Although it has been providing finance against securities since a long time it has been marketing it’s schemes only now.