Sodhani Capital Ltd IPO

Sodhani Capital Limited (the Company) was incorporated on March 12, 2019 as `Sodhani Capital Private Limited', as a private limited company under the Companies Act, 2013, pursuant to a certificate of incorporation issued by Registrar of Companies, Central Registration Centre. The Company was converted into a public limited company on August 22, 2023 as `Sodhani Capital Limited', pursuant to a certificate of incorporation issued by Registrar of Companies, Jaipur, Rajasthan.

The Indian mutual fund distribution industry has witnessed remarkable growth in the past decade, primarily due to an increase in investor awareness, a shift towards financial literacy, and growing financial inclusion. The industry has transformed from a traditional, branch-based model to a more modern, technology-driven platform. Distribution is an essential component of the mutual fund ecosystem, as it connects investors to a variety of fund offerings. The distribution network includes independent financial advisors (IFAs), banks, wealth management firms, and increasingly, online platforms. Regulated by the Securities and Exchange Board of India (SEBI), the industry ensures transparency, fairness, and investor protection. SEBI's initiatives, such as the implementation of direct plans and the introduction of new product categories, have strengthened the framework, allowing investors to make informed decisions while ensuring distributors get remunerated in a transparent manner. The Indian mutual fund distribution industry operates primarily on commission-based earnings, which are typically paid by asset management companies (AMCs) based on the assets under management (AUM) or the volume of business generated. With the rise of digital distribution platforms, commission structures have evolved, and technology has made it easier for investors to access funds, track investments, and make informed decisions with minimal intervention from intermediaries.

Sodhani Capital Ltd. (CIN: U65991RJ2019PLC064264) is a mutual fund distributor headquartered in Jaipur at C-373, 1st Floor, Vaishali Nagar, Rajasthan - 302021. Sodhani Capital Limited (the Company) was incorporated on March 12, 2019 as a private limited company under the Companies Act, 2013, pursuant to a certificate of incorporation issued by Registrar of Companies, Central Registration Centre. Mr Rajesh Kumar Sodhani, Mrs Priya Sodhani, Mr Ankit Sodhani and Mr Ajit Shah were the initial subscribers of our Company. The Company was converted into a public limited company on August 22, 2023 as `Sodhani Capital Limited', pursuant to a certificate of incorporation issued by Registrar of Companies, Jaipur, Rajasthan. The CIN of our Company is U65991RJ2019PLC064264. In the year 2021, the Company acquired the mutual fund distribution business (ARN transfer) of Mr. Rajesh Kumar Sodhani. The period between 2022 and 2024 witnessed further growth in both client base and assets under management (AUM). Client numbers grew from 5,000 in 2022 to over 7,000 by 2024, while AUM expanded from Rs.300 crore to Rs.500 crore. A key milestone in this growth phase was the company's transition from private to public limited status in 2023, enhancing its capital-raising capabilities and operational capacity. The company's success can be attributed to three key factors: consistent investment in operational infrastructure, strong focus on client education through initiatives like awareness seminars, and capable human talent.