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Ramesh Sharma

Religare’s group CEO and MD, Mr Sunil Godhwani, (left) along with the CEO of Hichens Harrison and Co, Mr Adam Wilson, during a press conference, in the Capital on Tuesday. —

Our Bureau

New Delhi, April 8

Religare Capital Markets, institutional broking and investment banking arm of Religare Enterprises, on Tuesday said that it has received “RBI’s no objection” for its buyout of the London-based financial services company Hichens Harrison & Co Plc in a deal costing $120 million (£55.5 million).

Hichens Harrison, which is listed at the Alternative Investment Market of the London Stock Exchange since May 2005, would be delisted after the regulatory approval for the deal is obtained from the UK’s Financial Services Authority, according to Mr Sunil Godhwani, Group CEO and Managing Director of Religare Enterprises.

On whether Religare Capital plans to retain the brand identity of Hichens Harrison after the acquisition is completed, Mr Godhwani told newspersons that the “brand would be maintained,” but added that the company would look at incorporating the ‘Religare’ brand in its overseas activities, once it was decided how they would go about doing it.

Religare Capital plans to acquire Hichens Harrison through a newly incorporated wholly-owned subsidiary based out of Mauritius, which in turn would float a wholly-owned investment vehicle in London. This deal is the first acquisition of an overseas financial services company by an Indian company in the same space.

Religare expects the Hichens Harrison deal to act as its launch pad for going global. “We are very excited that the board of Hichens has accepted the cash offer and we are looking forward towards binding our strengths and exploring opportunities. We see a strong fit between the two companies — both culturally and strategically. Our businesses are complementary and this will help both leverage the expertise, acumen and capabilities to build on our strengths to become the best in the business,” Mr Godhwani said.

Religare Capital believes that the acquisition would help create an international distribution network for Religare Enterprises’ domestic institutional business.

It would provide Religare Enterprise the opportunity to service the needs of Indian corporates through its large global network and provide small and medium Indian corporates with much needed access to capital.

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