The Hindu Business Line : Religare all set to buy UK brokerage Hichens

First forward
Shares of other broking firms also go up.
Acquisition first for any financial services firm here.
Hichens is one of Europe’s oldest broking firms.

Our Bureau

Mumbai, March 26 The Ranbaxy Group-promoted domestic broking firm Religare Enterprises is all set to acquire one of the oldest British financial services company, Hichens Harrison & Co, in a deal costing $110 million (Rs 450 crore).

The acquisition, first for any financial services company in India, is expected to be completed very soon. The deal is expected to give Religare presence across several countries including UK, Luxembourg, Dubai and Singapore, Religare officials said, confirming the development.

The company is one of the oldest broking firms in Europe and has a strong presence in both institutional broking and investment banking activities. The UK company is listed on the Alternative Investment Market of the London Stock Exchange.

The acquisition is expected to catapult Religare to the league of international financial services companies with presence in several countries, offering a complete bouquet of products.

Religare has one of the largest retail networks among the Indian financial services companies and Hichens Harrison will give the company a foot-hold in the extremely competitive international equity capital markets.

The IPO of Religare, which was listed on the Indian stock exchanges in November last, had received a huge investor response. The company’s share price went up by 4.13 per cent to Rs 380 on BSE on Wednesday on report about the proposed acquisition of the British broking firm. Shares of other leading broking firms too went up: Indiabulls Financial (6.18 per cent), India Infoline (9.03 per cent), Emkay Share & Stock Brokers (4.96 per cent), Motilal Oswal (2.75 per cent).

The company has also made forays in insurance and wealth management through joint ventures with Aegon and Macquarie respectively. The Religare board has also given approval for a non-life insurance foray through a joint venture.