Kolkata-based LSI Financial Services has obtained Securities and Exchange Board of India (Sebi) licence for merchant banking operations.
The company has been dealing with merger and acquisitions (M&A), project financing, debt syndication and financial restructuring so far.
With the licence, it will be able to deal in the capital markets, for initial public offering(IPO), rights issue and other forms of capital raising for listed corporates.
Barin Sarkar, chief executive, LSI, said, in the year 2008 his firm had raised about Rs 2,000 crore (Rs 20 billion) for companies through debt syndication. This year, LSI hoped to arrange about Rs 3,000 crore (Rs 30 billion) debt for Indian companies, he added.
LSI expects about 15 per cent of its revenue, in the next two years, to come through merchant banking operations in the capital market
At present, about 65 per cent of LSI's income is from debt syndication, 15 per cent from mergers and acquisitions and 10 per cent from cross-border deals.
This apart, LSI is looking at cross border deals for Indian companies, especially for procurement of raw materials.
"We have been quite aggressive in arranging cross-border deals, like purchase of raw materials and helicopters for corporates. We will also assist Indian companies to buy coal mines in places like Australia," said Sarkar.
Recently, LSI had arranged for acquisition of vineyards in Australia, South Africa and the UK, by an Indian company.
LSI employees about 40 professionals, and has offices in Delhi, Mumbai and Kolkata. Apart from merchant banking, LSI also plans to enter into the fields of portfolio management and share broking.
"We have several ideas, like portfolio management and share broking on the drawing board," Sarkar.
