IndusInd Bank to buy IL&FS Securities Services
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Mumbai: Private sector lender IndusInd Bank Tuesday said it will buy IL&FS Securities Services Ltd (ISSL), a subsidiary of Infrastructure Leasing and Financial Services (IL&FS) Ltd, in an all-cash deal.
IL&FS Securities Services, incorporated in July 2006, is a capital markets intermediary for professional clearing, depository and custodial services. ISSL services both retail and institutional clients including over 1,000 brokers, FPIs (foreign portfolio investors) and FIIs (foreign institutional investors).
The bank did not reveal the value of the acquisition.
“This acquisition brings scale to this business, complements our current product offerings and fits nicely into our strategy of creating differentiated businesses with domain expertise,” Romesh Sobti, MD & CEO, IndusInd Bank was quoted in the bank statement.
In the financial year ended March 2016, IL&FS Securities Services had a total revenue of Rs277.6 crore and a profit after tax worth Rs39 crore.
“The proposed transaction is conditional on definitive agreements and approvals, including regulatory approvals. The proposed transaction is expected to be made effective within the next 3 months and follow up announcements will be made as necessary,” the IndusInd Bank statement added.