The Hindu Business Line : Barings India arm investing $35 m in JRG Securities

Kochi, Aug. 26 The extraordinary general body meeting of JRG Securities has approved a $35-million investment in the company by Duckworth Ltd, which is 100 per cent subsidiary of Baring India Equity Ltd, subject to the regulatory approvals. Duckworth Ltd is a Mauritius-based company.

The EGM also decided to increase the authorised capital of the company from Rs 15 crore to Rs 40 crore. Duckworth will subscribe to 1.03 crore equity shares of JRG at the rate of Rs 48 per share, a premium of Rs 38.

Duckworth would also invest in 1.33 crore convertible warrants, with an option to convert the warrants into shares at the rate of Rs 48 per share. The promoters of JRG would also subscribe to 16.57 lakh warrants as well.

An NBFC would also be set up with JRG holding 57 per cent stake and Duckworth subscribing to 43 per cent. JRG would be subscribing to the shares of the new company at par while Duckworth would be paying Rs 14 per share.

The NBFC would be primarily offering credit to customers in the equity and commodities divisions of the company.

Addressing a press conference after the EGM, Mr T.M. Venkataraman, Chairman, said that the investment from Baring India would help “consolidate our position in the retail segment and surge ahead in areas of stock and commodity broking and other financial services.”

Baring India Partner, Mr Subbu Subramaniam, said that in the next 18 months JRG will make significant investments to further grow its distribution capabilities by increasing the branch network, franchisees and sales centres across the country. “Additional product capabilities will be built in portfolio management services, research, margin finance and distribution of insurance, mutual funds and real estate.”

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