BackIndusInd Bank acquires IL&FS Securities Services
The acquisition of IL&FS Securities Services will help IndusInd Bank scale up its capital market business and bring new specialised products, hitherto not offered by it
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Mumbai: Private sector lender IndusInd Bank Ltd on Tuesday said that it has signed a share purchase agreement with Infrastructure Leasing and Financial Services Limited, (IL&FS) and other minority shareholders to acquire 100% of IL&FS Securities Services Limited, (ISSL), a subsidiary of IL&FS.
The bank has received Reserve Bank of India’s approval for the proposed transaction.
ISSL, incorporated in July 2006, is a capital markets intermediary for professional clearing, depository and custodial services. It services both retail and institutional clients, including over 1,000 brokers, foreign portfolio investors and foreign institutional investors.
“The acquisition will help us scale up the present capital market business in the bank and bring new specialised products, hitherto not offered by us, to our clients. Over the years, ISSL has established itself as market leader with a dominant market share in professional clearing business of exchange traded derivatives. Its robust technology and operations platform clears over three million transactions every day on the stock exchanges," said Romesh Sobti, managing director and chief executive at IndusInd Bank.
The proposed transaction is subject to regulatory approvals, Sobti said, adding that the acquisition aligns well with the bank’s strategy of focussing on differentiated businesses with strong domain leadership.
ISSL posted revenue Rs324.5 crore and profit after tax of Rs45 crore for financial year 2018.
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