The Competition Commission has approved the U.S.-based Kora's proposed investment worth $75 million (about Rs 532 crore) in Edelweiss Group.
As per the share subscription agreement, Kora is to invest in Edelweiss Securities Ltd. and Edelweiss Global Investment Advisory business subsidiaries.
The deal was announced in August.
In a tweet on Wednesday, the Competition Commission of India said it “approves Kora Master Fund LP investment of up to 10 percent ($75 million) in Edelweiss Securities Limited.”
.@CCI_India approves Kora Master Fund LP investment of upto 10% (USD 75 million) in Edelweiss Securities Limited
October 16, 2019The acquirer is a foreign portfolio investor.
The target entities belong to the Edelweiss Group, with Edelweiss Financial Services Ltd. as the ultimate holding company, and are broadly engaged in Edelweiss Global Investment Advisory Business, CCI said in a release.
As per the notice given to CCI, the proposed transaction represents an attractive investment opportunity for the acquirer in the financial services sector in India.
“At the same time, the proposed transaction will help the target entities to further strengthen and build a large and diversified EGIA business. The target entities will use the capital provided by the acquirer, through its investment in the EGIA business, to give a thrust to its business and facilitate growth for the coming years,” the notice said.
Kora is also contemplating to invest a further amount of $50 million (about Rs 355 crore) in Edelweiss Group in the near future, the combination notice filed with the regulator added.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
