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IIFL Wealth Group, on Wednesday, announced plans to acquire 100 per cent stake in L&T Capital Markets, which is a wholly-owned subsidiary of L&T Finance.
“IIFL Wealth Group has entered into a definitive agreement to acquire 100 per cent equity shares of L&T Capital Markets, which provides wealth management services for individual and institutional clients. The transaction is subject to regulatory approvals,” it said in a statement.
The transaction, which will be completed within 20 days of all regulatory approvals, is valued at ₹230 crore, along with “the cash and cash equivalent balance of L&T Capital Markets”.
“The said consideration is linked to the actual cash position of L&T Capital Markets, and it may be adjusted based on the cash position of L&T Capital Markets (LTCM) on the completion date,” said a regulatory filing.
According to the filing, the acquirer is IIFL Wealth Finance Limited, which may acquire LTCM solely or jointly with a wholly-owned subsidiary of IIFL Wealth Management
LTCM offers a portfolio of comprehensive products and services across asset classes, and also has a set of research professionals and bankers.
IIFL Wealth Management is hopeful that the acquisition will strengthen its platform for serving high net-worth and ultra-high-worth families.
Karan Bhagat, Founder, MD and CEO, IIFL Wealth Management, said: “Going forward, our combined effort will further strengthen our reach and offerings for the high net worth and ultra-high net worth clients across India.”
Financial advisor
JM Financial acted as the exclusive financial advisor to L&T Finance Holdings.
“This move will help the wealth management business scale up further by accessing the broader repertoire of products and services offered by the IIFL Wealth platform, which will benefit the clients and the team,” said Dinanath Dubhashi, Managing Director and CEO, L&T Finance Holdings.
LTCM total income
As on March 31, LTCM reported total income of ₹124.81 crore and net worth of ₹82.45 crore. It is present in nine locations across the country.
IIFL Wealth and Asset Management is present across 33 locations in seven major global financial hubs and 26 locations, including India and around the world.
The L&T Finance Holdings scrip fell 3.56 per cent and closed at ₹94.70 apiece on the BSE.
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