Mumbai: Domestic investment banking firm Centrum Capital Ltd. (CCL) and financial services firm Future Capital Holdings (FCH) will exit their three-year old joint ventures FCH Centrum Wealth Managers Ltd. and FCH Centrum Direct Ltd., the companies informed through a press release.
Centrum will pay Rs100 crore to Future Capital for the latter’s 50% stake in FCH Centrum Direct, FCH will buy out Centrum’s 50% stake in FCH Centrum Wealth Managers Ltd. for Rs1 crore.
V. Vaidyanathan, vice chairman and managing director, Future Capital said, “..Our exit from FCH Centrum Direct Ltd is in line with our already stated strategy in this matter.”
Chandir Gidwani, chairman, Centrum said that the company will “continue to build on our successful and market leading franchise in the forex money changing and travel vertical as this business forms a part of the core of our retail financial services strategy. “We will continue to invest and grow our wealth management and high net worth broking and distribution businesses on the Centrum Broking platform,” he said, in the statement.
In 2008, FCH had invested Rs75 crore for 50% stake in FCH Centrum Direct Ltd. and Rs25 crore for a 50% stake in FCH Centrum Wealth Managers Ltd.