Loan Scam ! Who is Money Matters

Loan Scam: Who is Money Matters?

Money Matters financial services, a name you may not have heard much of until yesterday. But today, this non-banking financial services company is bang in the middle of the latest scam making headlines. CNBC-TV18’s Tanvi Shukla and Kritika Saxena find out what the company is all about

It has offices, on the fourth floor of merchant chambers in Mumbai, connecting several big corporate houses and their lenders. Money Matters may not be a big name in equity issuances, but the Rs 32,000 crore debt that it has facilitated to various companies have given it a big name in the credit syndication and debt capital market advisory space.

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It has over 100 marque clients, including the Adani Group, Tata Group, Reliance ADAG Group, Jindal, Jaypee Group, HCC, India Bulls, Suzlon and DB Realty.

Incorporated in 1994 as Daiwa Securities, a non-deposit taking NBFC, it changed its name to Dover Securities in 1999 and was bought by Rajesh Sharma in 2007-08 -- a chartered account with experience in corporate finance, investment banking and merchant banking.

In 2009, Sharma expanded into advisory-related services in debt syndication and debt placement. Thus, boosting revenues to Rs 227 crore in FY10.

The company's stock also zoomed -- from Rs 181 in January this year, to Rs 675 in October, just before it raised Rs 445 crore through the QIP route.

India Infoline, which managed the QIP solo, says it had no idea what dealings money matters undertook.

We are quite surprised and shocked by the findings of yesterday. The matter has come up last evening, so till now we haven't been able to communicate with investors; but we shall do that.

The QIP was subscribed to by Fidelity, Morgan Stanley Mauritius, Sundaram Mf, Wellington Management and Ivy Pacific Opportunities Fund.

Wellington Management, which holds 5.37% in Money Matters has sought explanations from the company on the CBI's allegations. High-profile clients aside, Money Matters also boasts high-profile, independent board members.

These include former LIC Chairman RN Bharadwaj (who has also been a member of the securities appellate tribunal), VP Singh, who was with RBI for three years and IDBI for 27 years, B Samal, former chairman (Bank Of Allahabad) and also a member of the Securities Appellate Tribunal.

The company may be in the middle of an investigation by the CBI, but that's not keeping employees away. They turned up in good numbers, and waited patiently within closed doors for any kind of word from top management.