Mumbai: Singapore-based investment group Orient Global will acquire 6.48% in domestic brokerage firm India Infoline for Rs555 crore.
Orient Global proposes to invest Rs555 crore for acquiring 32 million shares in India Infoline, representing 6.48% of the current equity capital, India Infoline said in a filing to the Bombay Stock Exchange.
The domestic brokerage firm, which has been seeing robust growth in its retail and institutional equities businesses, will use the capital provided by Orient Global to carry out further development.
Besides, Orient Global would also invest $50 million for a 10% stake in India Infoline’s insurance subsidiary India Infoline Marketing Service Ltd (IIMSL).
IIMSL does its business through two subsidiaries, India Infoline Insurance Services and India Infoline Insurance Brokers.
Capital provided by Orient Global would be used to expand branch network, establish call centres and training centres, invest in technology and other corporate purposes.
In November, Orient Global invested $76.7 million (Rs300 crore) for a 22.5% stake in India Infoline’s consumer finance subsidiary India Infoline Investment Services.
An extra ordinary general meeting of shareholders would be held on 18 January to mull the above issue.
India Infoline shares were trading at Rs1,535.50, down 0.75% in the morning on BSE.