Orbis Financial Corporation

Wednesday, Mar 20, 2024

(Price is Rs. 105 as of August 2023)

ISIN

INE155K01013

Orbis Financial Corporation Ltd. Share Price - Face Value

Rs.10

Orbis Financial Corporation Ltd. Unlisted Shares

9,43,14,771

P/E of the share

21.92

Market Capitalization

Rs. 990 crores

Sector

BFSI

Book Value

Rs. 23.64

P/B of the share

4.44

Category

Pre-IPO

IPO Status

Unknown

DRHP Status

Not filed yet

Promoter’s Holding

36.84%

About Orbis Financial Corporation Limited

Orbis Financial Corporation Limited was established in 2005. The headquarter of the company is located at Gurgaon, Haryana while its operating office is located in Mumbai, Maharashtra. It entered the securities market as a ‘Custodian of Securities’ aiming to provide a well designed and customized investing service to investors across the world. The company’s main clientele base consists of Domestic & Foreign Institutional Investors, Foreign Portfolio Investors, Corporates and other High-Net worth individuals.

The company is successfully registered with SEBI under the following categories:

Designated Depository Participant serving Foreign Portfolio Investors
A clearing member on NSE, BSE, MSEI and MCX
A Depository Participant on NSDL & CDSL
A category I Registrar & Share Transfer Agents

With the help of its subsidiary company, Orbis Trusteeship Services Private Limited, the company manages to deliver Trustee services to its customers. Orbis Trusteeship Services Private Limited is officially registered with SEBI as ‘Trustees’ under regulation 8 of the SEBI regulations, 1993 and takes care of the ‘Debenture Trustee’ activities. Orbis Trusteeship Services Private Limited is fully authorized to provide services related to trusteeship, administration and asset management support under IFSCA GIFT CITY, in Gujarat.

Promoters and Promoter Group:

The promoter group of Orbis Financial Corporation Limited is formed by 11 members

Dr.VijayKelkar(Founding Chairman),
Mr. AtulGupta( Chairman)
Mr.ShyamSunder Agarwal(MD & CEO)
Mr.Rup Chand Jain(Non-Executive Director)
ShachindraNath (Independent Director)
Pranay Kothari (Independent Director)
Manasi Gupta (Non-Executive Director)
Michael Johann EDuardJaeggi (Non-Executive Director)
S.A.R. Acharya( Non-Executive Director

All the promoters jointly hold about 45.77% of the company’s total shares. The remaining shares of the company are divided between ArpitKhandelwal (18.37%), Plutus Wealth Management (8.10%), Mukti-act AIF-II (6:46%) and AD holding (2.74%).

Product Range:

The list of products and services offered by Orbis Financial Corporation Limited are:

Designated Depository Participant Services (DDP)
Custody & Depository Services
Find Accounting Services
Derivative Clearing Services
Escrow Services for Securities
Trusteeship Services
Registrar & Share Transfer Agency Services (RTA services)
OrbisOnline

Strengths:

Orbis Financial Corporation Limited operates on the principle of zero conflict business by offering full transparency to all its investors right up to the beneficiary level, thereby gaining trust from its investors.
It delivers excellent client service by working together with its customers and understanding their investing needs.
The company’s excellent domain expertise helps it to produce and deliver customized services to its investors, keeping in mind their specific needs and risk taking capacity.
Orbis Financial Corporation Limited emphasizes on continuous innovation and strives hard to deliver client services based on innovation and developed market standards.
The company follows a flexible approach and has deployed a State of the Art Integrated technology platform which is based on an ERP system.
It has a strong network with over 116 employees and a shareholder base of 241, who jointly ensure and support the company’s smooth functioning.

Opportunities:

The rising demand for custodian services and lack of agencies providing these services has created ample growth opportunities for companies like Orbis Financial Corporation Limited in the Indian custody services market.
The Indian custody services market lacks a specialized custodian service provider which can act as a one stop solution for investors across India. Orbis Financial can benefit from this by exploring the markets and trying to develop as a company to provide specialized services in the custodian market .
Increase in foreign and domestic investments have also played a vital role in development of the custodian market and has encouraged financial institutions to explore the custody services market.

Threats:

The company’s revenue is dependent upon performance of the capital market to a great extent. Any kind of change in the country’s economic condition might have a direct impact on the company’s growth.
About 51% of the company’s assets under custody is concentrated between the top ten of its client list. This exposes it to concentration risks.
There are 20 custodial service providers in the industry out of which Orbis is the sole individual-promoted custodian. Rest are either bank promoted or are promoted by financial institutions. This can be considered as a threat to the company’s growth.
The custodian industry is dominated mainly by bank custodians. There are about 15 bank promoted custodians in the industry posing a direct threat to the company’s growth.

Orbis Financial Corporation Ltd. IPO and future prospects

The company has no IPO planning till date.

Financial Performance of the Firm:

The financials of the company for the financial year ending 2022 and 2023 is given below

Particulars	Year ending 31.03.22 (Amount in lakhs)	Year Ending 31.03.21 (Amount in Lakhs)
Total revenue	18912	8558.95
Total Expenses	12542.97	6686.70
Profit before Tax	1693.80	337.46
Profit after Tax	4675.23	153.79
Basic EPS	5.29	2.19
Diluted EPS	4.6	1.98

Recent Developments

Since its inception the company has been developing gradually. By adopting technologically advanced strategies and providing customer-friendly services, the company has managed to achieve certain milestones; Some are:

2020:

The company’s assets under custody touched a mark of Rs.10000 crore in March 2020.

2021:

The company raised an additional capital @Rs.27 per share in the financial year ending 2021.
The Gift City branch office was fully operationalised under SEBI guidelines to provide services related to trusteeships to its clients.
The company’s assets under custody further increased to Rs.34128 crore in March 2021.

2022:

It raised an additional capital through rights @ rs.40.50 per share in the financial year ending 2022.
The net worth of the company was calculated to be more than Rs.220 crore for the year ending 2022.
The number of onboard clients reached beyond 2000.
The assets under custody further accelerated to Rs.67639 in March 2022.

Awards:

The company has bagged certain awards during its course; Some are

2021: The company received a momentum from CDSL in the month of January 2021.
2022: The company again received momentum from CDSL in the month of February 2022

Growth prospects

The company has managed to grow continuously since its inception and has successfully delivered results that indicate an overall positive growth. Some of the growth highlights of Orbis Financial Corporation Limited are:

The total revenue of the company is believed to have increased by 120.77% in FY22 as compared to revenue values in FY21.
The PBT values have shown an increase of 234.56% in FY22 over FY21.
The assets under custody also have shown an increase of 97.40% in FY22 over FY21.

Industrial Growth

Orbis Financial Corporation Limited belongs to the custody services industry. The global custody market has been reported to grow at a CAGR of 8.9% , amounting to $38.17 billion in FY22 as compared to $41.57 billion in FY21.

The Indian custody services market accounts for about 2% of the global custody market. The assets under custody have also grown significantly at a CAGR of 22% from FY02 to FY22.

(Source: https://www2.deloitte.com/content/dam/Deloitte/in/Documents/Consulting/in-hc-CustodianMarket-in-India-29june2020-noexp.pdf )