The Hindu Business Line : IDFC buys 33 pc stake in SSKI

Infrastructure Development Finance Company (IDFC) has approved the acquisition of 33 per cent stake in privately held Mumbai-based stock broking company S.S.Kantilal Ishwarlal Securities Ltd for an undisclosed amount.

The decision, which was taken after IDFC board meeting here, marks its formal entry into the booming stock broking and corporate finance business.

"Through this investment, IDFC and SSKI propose to work together by pooling their relationships and expertise to provide investment banking and capital markets solutions to clients. IDFC would nominate two directors on the Board of SSKI," a press release by IDFC said here.

The transaction is expected to be over in two months time, after getting the other necessary clearances, it said. The company, however, did not disclose the amount it would pay for the 33 per cent stake.

Fund interest

In recent times, the local stock broking industry has attracted private equity participation as they look for funds to expand the branch network to cash in on the booming stock markets. Two US-based funds - New Vernon Capital and Bessemer - recently picked up nine per cent stake in Motilal Oswal Securities for Rs 125 crore. Another private equity firm General Atlantic invested Rs 144 crore in Sharekhan while Indiabulls attracted investments from L.N.Mittal and Merrill Lynch.

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