The Hindu Business Line : US co invests Rs 164 cr in SMC Group

Mumbai May 20 The US-based blank cheque company Millennium India Acquisition (MIAC) has invested Rs 164 crore for 14.9 per cent equity stake in SMC Group, a broking firm with pan India presence.

A blank cheque company or special purpose acquisition company (SPAC) raises funds by listing itself on the bourses of a developed country and deploys them in multiple jurisdictions. SPAC is floated by a band of high profile promoters.

SMC is said to be the first Indian company to attract investment from a US-based blank cheque company.

Mr Subhash Chand Aggarwal, Chairman of SMC Group, said: "The funds raised will be deployed for faster growth and working capital requirements. We will also expand our network further and add greater value for our customers through advanced technology."

SMC provides a platform for trading in equity and commodity-based products and has exchange memberships with the BSE, the NSE, the MCX, NCDEX and DGCX (Dubai Gold and Commodity Exchange). Mr F. Jacob Cherian, President and CEO of MIAC, said: "SMC is a fast-growing company in India with long-term strategy, an established presence and significant expansion potential. We look forward to working with the dedicated and professional team of SMC to help the company accelerate its growth through access to capital this transaction provides."

Listed on American Exchange (AMEX), MIAC recently raised $58 million and intends to invest in privately owned businesses with focus on financial services, healthcare, infrastructure, consumer retail and hospitality.

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