Business Daily from THE HINDU group of publications
Wednesday, Jul 26, 2006
Business Daily from THE HINDU group of publications Wednesday, Jul 26, 2006 |
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Markets
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Financial Services Corporate - Mergers & Acquisitions Our Bureau
Mumbai , July 25 E*Trade Financial Corporation, a leading US-based retail stock broking outfit, is taking controlling stake in Indian securities and commodities broking firm, IL&FS Investsmart Ltd. At present, E*Trade Financial Corporation and Softbank Asia Infrastructure Fund, through their respective Mauritius-based subsidiaries, hold about 29 per cent stake in IL&FS Investsmart. After a block deal for about 4.5 per cent stake on Monday by foreign brokerage CLSA Mauritius, apparently on behalf of E*Trade, the stake held by two entities have gone above the promoter Infrastructure Leasing & Financial Services Ltd's 30 per cent stake. "E*Trade is involved in a dialogue to increase its commitment to the joint venture in terms of their strategic participation in the management of the company. E*Trade may also, enhance its share in the company's equity holding over a period of time," said a press release issued by the company after approving its first quarter results. On Tuesday, IL&FS Investsmart shares ended flat at Rs 110.40, compared to the previous close of Rs 110.30.
Board restructured
The board meeting to finalise the first quarter results, also saw changes in the structure of the board of directors. Mr Hemang Raja, Managing Director & CEO, has indicated his desire to step down citing "health reasons." Mr Sachin Joshi, Chief Financial Officer, who was made Executive Director-Finance and Operations, said a representative of E*Trade was likely to replace Mr Raja as MD & CEO. The board meeting also saw two other senior executives viz., Mr Sandeep Presswala, Chief Operating Officer-Retail Business, and Mr Girish Nadkarni, Chief Operating Officer (Wholesale business), appointed as Executive Director-Retail Business and Executive Director-Institutional Business, respectively.
First quarter results
Meanwhile, IL&FS Investsmart said its net profit for the first quarter of 2006-07 grew 81 per cent to Rs 17.7 crore, compared to Rs 9.8 crore in the same period last fiscal. The total income rose 71 per cent to Rs 60.9 crore from Rs 35.6 crore.
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