London: British-based international bank HSBC said it now owns 93.86% of Indian brokerage IL&FS Investsmart after completing an open offer on Monday and closing the $296 million takeover.
The deal is set to boost HSBC’s presence in Indian’s growing domestic market, with an estimated 20 million retail customers.
“Investsmart gives HSBC access to the world’s third-largest investor base,” chief executive of HSBC Asia-Pacific, Sandy Flockhart, said in a statement.
HSBC made a cash offer for a 73.21% stake in IL&FS from E*Trade Mauritius Limited, a unit of online brokerage firm E*Trade Financial Corporation and Infrastructure Leasing and Financial Services in May. The decision to take a controlling interest in the firm triggered an open offer to public shareholders.
HSBC confirmed on Monday that it had accepted the maximum number of shares for the open offer, equivalent to 20.65% of Investsmart’s share capital.