DealTracker - Barings Acquires 12% Stake in Sharekhan
Baring Private Equity has acquired a 12% stake in Mumbai-based brokerage firm Sharekhan in a deal worth Rs 240 crore, which in turn values the brokerage company at Rs 2,000 crore.
The transaction is through a mix of secondary sale by the largest shareholder of the brokerage firm Citigroup Venture Capital (CVC) and additional infusion of funds into the company’s capital.
Last year, CVC along with IDFC had invested around Rs 650 crore to pick up 85% stake in Sharekhan. This translates into valuation upside of more than 125% in ten months.
Indiabulls Financial, even after spinning off its brokerage business into a separate firm Indiabulls Securities, which is to list soon, is the most valued firm at about $3 billion, followed by investment banking-cum-brokerage firm Edelweiss Capital which is valued at $1.25 billion, India Infoline ($1.15 billion) and JM Financial ($1.1 billion). [Via]
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