Equity is the capital amount which is raised or contributed by members of the company.
An equity investment generally refers to the buying, holding and selling of shares of stock on a stock market by individuals and Corporate houses in anticipation of income from dividends and capital gains.
But it is not easy as it seems, it requires an expert to unravel the codes of equity management and LFS offers an array of equity services like consultancy to portfolio handling of I.P.O( Initial Public Offer), F.P.O( Further Public offer), ordinary shares, convertible bonds along with adroit handling of business model, level of development, capital structure, strategic imperatives and overall financial profile of all types of Investors from newbies to veterans with noble intention of optimizing the gains of clients.
Derivatives are financial products, such as futures contracts, options, and mortgage-backed securities. Most of derivatives' value is based on the value of an underlying security, commodity, or other financial instrument. We offer a bouquet of Derivative offerings suitable for brokers to long term investors, amateurs to diverse class of capital market veterans. We have a devoted team assisting clients on Asset allocation, Portfolio enrichment and trading strategies in future, option and other forms of derivatives.
Initial Public Offering (IPO) is the first price for which a company offers to sell its stocks when it moves from private ownership to publicly listed company. Generally, companies offer IPOs in order to raise money for business expansion and capitalization of new business opportunities. India is a hotbed for entrepreneurs and businessmen alike due to unprecedented economic growth and cordial government policies and thereby resulting in avalanche of IPO’s in Indian market. LFS will bring its vast expertise in conducting public issues, to derive manifold gains to prospective investors. We predominantly provide consultancy services, advisory inputs and related financial activities in the IPO Funding arena to our clientele which consists High Networth Individuals ( HNI), corporates and Investors.
A follow-on offering or further public offering (FPO), as the name suggests is an issuance of stock succeeding the company's initial public offering. A secondary offering is an offering of securities by a shareholder of the company (as opposed to the company itself, which is a primary offering).
There are two types of offerings:
Dilutive - In the case of the dilutive offering, the top management of the organization decides to increase the number of shares with intention of selling additional equity of organization. This cash gained may be used to settle debt or utilized for funding company’s expansionist activities. When new shares are created and then sold by the company, the number of shares outstanding increases and this causes dilution of earnings on a per share basis. As a result, it is known as Dilutive offering.
Non-Dilutive- The non-dilutive type of follow-on offering is when privately held shares are offered for sale by company directors or other insiders like venture capitalists, etc. As no new shares are created, therefore this type of offering is a non-dilutive one.
Our fundamental prowess in meticulous analysis and customized client service is combined with global outlook and localized strategy to extract maximum gains from the FPO’s and other such related investment vehicles to the investors.
Any company whenever it requires huge capital to start or expand its business and it becomes impossible for company to raise such a massive capital. Then, the company borrows funds from public or financial institution, on which company pay the fix rate of interest is known as a debentures.
There are two types of debentures
Convertible Debentures - Convertible Debentures gives an option or make it mandatory for debenture holders to convert them into equity or preference shares at a stated rate of exchange after a certain period.
Non-Convertible Debentures - They are not convertible into equity or preference shares afterwards. The holders of Non-Convertible Debentures enjoy higher rate of interest as compared to Convertible Debentures. During maturity/redemption the company gets back its debenture and the debenture holder gets initial amount back along with the interest earned.
We originate, structure and execute public and private placement of a variety of debenture related products both for companies who want to issue them (Provider) and investors who want to buy them (acceptor). LFS has a team of experts and relevant experience to execute any debenture oriented process right from underwriting to issuance of debentures.