Inditrade exits equity broking, to focus on lending

Vinson Kurian THIRUVANANTHAPURAM | Updated on May 20, 2018 Published on May 20, 2018

Inditrade proposes to divest its equity broking business and invest up to ₹24 crore for acquiring additional shareholding in JRG Fincorp, an NBFC, and ₹11 crore in Inditrade Housing Finance.

Sudip Bandyopadhyay, Group Chairman, Inditrade, made the announcement after a board meeting of the company on Friday.

“Our focus for the last few years has been clearly on NBFC and microminance. We now want to zero in on chosen areas, and hence the decision to exit equity broking,” he said.

“This would allow both JRG Fincorp and Inditrade Housing Finance to strengthen their southern presence and concentrate on the lending business.” The company has divested its equity broking business to Choice Equity Broking, part of the Mumbai-based Choice Group of Companies.

The latter plans to expand its presence in the South through this acquisition, which brings with it 1.2 lakh additional customers, 320 employees and 440 franchises and business associates.

Kamal Poddar, Managing Director, Choice Group, said that the acquisition is a key milestone and step towards its objective of being among the top 10 brokerage firms in India.

“The deal will also help our holistic financial services conglomerate to leverage cross-selling opportunities across products.”

Separately, Inditrade Capital has announced plans to introduce ‘organised finance’ for borrowers from hitherto unserved or underserved segments of the financial sector.

Explaining, Bandyopadhyay said that it plans to enter housing finance with special focus on the affordable segment as also give out merchant cash advances, which it will launch later this month.

This is even as the company continues to expand its existing businesses of agri commodity financing and microfinance.

Published on May 20, 2018

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.