Mumbai, Dec. 24: Singapore-based investment group Orient Global will acquire a 6.48 per cent stake in domestic brokerage firm India Infoline for Rs 555 crore.
The India Infoline group, comprising the holding company, India Infoline Ltd and its wholly owned subsidiaries offers a range of investment products such as equities and derivatives, commodities, portfolio management services, mutual funds and life insurance. The company has a network of 596 branches across 345 cities in the country.
India Infoline is delighted to strengthen its relationship with Orient Global. The capital provided by Orient Global will help us grow our broking and insurance distribution businesses further, India Infoline chairman and managing director Nirmal Jain said.
Richard Chandler, founder chairman of Orient Global, said, Orient Global is pleased to increase its support for the growth of Indian financial services through its investments in the India Infoline group. Expanding Indias financial services will foster individual creativity and community prosperity by empowering entrepreneurs with the necessary capital to develop businesses to their full potential.
Orient Global proposes to invest Rs 555 crore for acquiring 6.48 per cent of the current equity capital, India Infoline said in a filing to the Bombay Stock Exchange.
The domestic brokerage firm, which has been witnessing robust growth in its retail and institutional equities businesses, will use the capital provided by Orient Global to carry out further development.
Besides, Orient Global will invest another $50 million for a 10 per cent stake in India Infolines insurance subsidiary India Infoline Marketing Service Ltd (IIMSL).
IIMSL does its business through two subsidiaries, India Infoline Insurance Services and India Infoline Insurance Brokers.