Orbis Financial Pre IPO Share Review | Learn About Orbis Financial IPO News & More!

 About Orbis Financial Unlisted Shares:

Orbis Financial Services ("Orbis") is a leading provider of securities services in India, specializing in investment services since its establishment in 2005. Initially entering the financial markets as a "Custodian of Securities," Orbis offers a comprehensive range of services, including clearing, settlement, risk management, and fund accounting. The company primarily serves brokers, portfolio managers, wealth managers, hedge funds, and private equity funds.

Institutional investors such as Foreign Portfolio Investors (FPIs), Mutual Funds, and insurance companies like Life Insurance Corporation of India (LIC) often rely on custodians like Orbis to handle their market investments. These custodians manage the buying and selling of securities, record dividends, and handle tax-related matters, charging a fee for their services. With advanced technology and expertise, custodians efficiently manage large volumes of transactions and maintain accurate records.

Orbis, as a dedicated custodian, holds a significant advantage over foreign and Indian banks regarding non-performing assets (NPAs). Unlike banks, Orbis does not have NPAs, which provides added security and stability for FPIs and Foreign Direct Investments (FDIs), avoiding potential liquidity issues.

Registered with the Securities and Exchange Board of India (SEBI), Orbis functions as a Custodian and a Designated Depository Participant for Foreign Portfolio Investors. It also operates as a Clearing Member and Depositary Participant on the NSE, BSE, MSEI, and MCX across various segments. The company's headquarters are located in Gurugram, Haryana, and it conducts its trustee business through its subsidiary, Orbis Trusteeship Services Private Limited.

When is Orbis Financial IPO Coming? 

There are currently no plans for Orbis Financial IPO. 

Orbis Financial Pre IPO Business Model Information: 

Orbis Financial Corporation Limited, established in 2005, is a key player in India's financial services sector, offering a wide range of investor services across several inter-related verticals. These include Custody & Fund Accounting services, Equity and Commodity derivatives clearing, Currency derivatives clearing, Registrar and Transfer Agency, and Trustee services.

Orbis's Custody & Fund Accounting services involve providing detailed transaction records, valuations, profit reports, net asset value (NAV) calculations, trade reconciliations, and comprehensive fund-level and beneficiary-level accounting. Their services also include annual audit preparations, fee calculations, price verifications, and day-end valuations, among others. These services are supported by advanced ERP-based technology platforms that allow for the customization of reports and integration of data from multiple systems

In the derivatives clearing sector, Orbis handles both equity and commodity derivatives, ensuring efficient clearing and settlement processes. Their currency derivatives clearing services are designed to manage and mitigate risks associated with foreign exchange transactions

The Registrar and Transfer Agency (RTA) services offered by Orbis include managing securities registries, facilitating initial public offerings (IPOs), handling corporate actions, administering ESOPs and warrants, and maintaining shareholder communications. They also provide e-voting management services, ensuring compliance with corporate governance standards

Through its subsidiary, Orbis Trusteeship Services Private Limited, Orbis provides trustee services, including acting as a debenture trustee, security trustee for term loans and credit facilities, and providing services for ESOP trusts, escrow services, and administration of trusts and legal structures. This subsidiary is registered with SEBI and authorized to offer these services under various regulatory frameworks

Orbis has shown significant financial growth, with a 57% increase in total income in FY23 compared to the previous year, and a profit after tax increase of 87.26%. The firm manages substantial assets under custody, which grew by 20% to INR 81,160 crore in FY23

Overall, Orbis Financial Corporation Limited leverages its expertise and technology to offer a comprehensive suite of financial services tailored to the needs of a diverse clientele, including domestic and foreign institutional investors, corporates, and high-net-worth individuals

Orbis Financial Unlisted Shares Strengths: 

Over the past three years, assets under custody have experienced an impressive 85.29% compound annual growth rate (CAGR), reflecting strong confidence from foreign portfolio investors (FPI), mutual funds, and foreign direct investments (FDI).

All business segments are seamlessly integrated; for instance, the Custodian Business is effectively supported by the Professional Clearing Member Vertical and the Registrar and Transfer Agents Vertical.

The company boasts a robust client base that includes FPIs, mutual funds, and FDIs.

The custodian services cater to institutional clients who conduct thorough due diligence before engaging. There is a necessary gestation period for custodians before they secure business from these institutional clients.

Orbis Financial Unlisted Shares Weaknesses: 

The company derives approximately 26.68% of its income from custody services, which are tied to capital markets and therefore susceptible to market fluctuations.

Lacking a banking license, non-bank custodians cannot provide transactional services that complement custody services, such as deposit accounts and foreign exchange management. Any policy changes affecting the services offered to custodians could impact the business.

A significant portion of the company’s revenue, 68.8%, comes from interest income on bank deposits, which is considered non-core business, while only 25.3% is generated from custody services, the company's primary operation.