Swastika Investmart Announces Merger of Its Commodity Business Subsidiary

Stockbroking firm Swastika Investmart has completed the merger of its subsidiary company Swastika Commodity Private Limited to directly engage in the business of commodities and derivatives. The move will help the company to increase its operational and financial efficiency, said Swastika Investmart in an official press release. The absorption of Swastika Commodity has received due permission from the Mumbai Bench of NCLT as per the provisions of the Companies Act, 2013 and rules made thereunder.

Commenting on the development, Swastika Investmart’s Managing Director Sunil Nyati said that the business activities of both companies were similar in nature and complement each other. Hence, the merger was undertaken to improve efficiency and reduce the multiplicity of costs involved in the operation. “As of 31 March 2021, the gross revenue of Swastika Investmart Ltd. was Rs. 6158.54 lakh (Rs 61.58 crore). This merger will contribute to the revenue of Swastika Investmart Limited (Standalone) by 15% tentatively,” he added.

Nyati said that the main objective of this merger was to combine all processes of commodity and equity to make it easy for the clients to manage and settle accounts under one roof of the company.

Registered as a Category I Merchant Banker with the Securities and Exchange Board of India (SEBI), India’s market regulator, Swastika Investmart also has a membership of the commodity exchanges like MCS, NCDEX and ICEX.

Last month, the company announced an agreement to acquire the business of Safal Capital. Swastika said that the deal will enhance its customer base by close to 5 per cent. The deal will also allow Safal Capital’s customers to use the services of the stock research team, technology platform, compliance and customer support services of Swastika.

Safal Capitals, formerly known as MPSE Securities Limited, was a subsidiary of Madhya Pradesh Stock and Capital Market Limited. However, after the derecognition of the stock exchange, all of its businesses were shifted under the banner of Safal Capital, incorporated in March 2000 in Ahmedabad.

Apart from being a Depository Participant of Central Depository of India Limited (CDSL), Safal Capital also has corporate membership of NSE, BSE, MCX, ICEX, NCDEX, and Metropolitan Stock Exchange Limited. The company has more than 16,000 retail clients and 120 sub-brokers.

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