IL&FS Investsmart has informed the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) that its board of directors has approved a proposal to acquire the business of Apeejay Securities, the broking arm of Kolkata-based Apeejay Surrendra Group.
Gets 5,000 clients from Kolkata group’s brokerage.
MUMBAI: IL&FS Investsmart has informed the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) that its board of directors has approved a proposal to acquire the business of Apeejay Securities, the broking arm of Kolkata-based Apeejay Surrendra Group.
“The business purchase agreement will be signed in the next 30 days,” said Hemang Raja, managing director of IL&FS Investsmart . But he refused to divulge details on the price he’ll pay to buy the firm.
“We have a strong presence in the North and South, but have not penetrated the East as much. We think that Apeejay Securities, with a good pedigree and about four branches and 61 franchisees, will help us build our presence in the East,” added Raja. IL&FS Investsmart currently has about 250 branches.
Apart from the outlets, IL&FS Investsmart would also get a readymade set of 75 employees and 5,000-odd customers from Apeejay. The trading licences of Apeejay Securities on both the exchanges will be surrendered.
The purchase will be funded through IL&FS Investsmart ’s own cash reserves. According to Raja, around 70% of IL&FS Investsmart ’s Rs 216 crore revenue (for FY06) came from its retail business. The remaining came from its institutional equity, merchant banking and syndication businesses.
On Tuesday, the shares of the company closed down 1.08% at Rs 137.40 on the NSE. In the financial services business, apart from Apeejay Securities, the Apeejay Surrendra Group also runs Apeejay Finance (auto finance company) and Apeejay Insurance Services (insurance broker).
Besides, the group is also into producing tea, with around 30,000 acres under cultivation. The Park Hotels, a group of boutique hotels at five different locations in the country (Bangalore, Chennai, Kolkata, New Delhi and Visakhapatnam), is also owned by the group. It is also into shipping, retail (Oxford Bookstore) and real estate.
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