IndusInd Bank Ltd. has agreed to acquire 100 percent stake in brokerage IL&FS Securities Services Ltd. from its parent Infrastructure Leasing and Financial Services Ltd. (IL&FS) and other shareholders.
The bank did not disclose the value of the transaction in its filing to stock exchanges.
“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,” an IndusInd Bank statement quoted Managing Director and Chief Executive Officer Romesh Sobti as saying.
IL&FS Securities Services is a capital market intermediary for clearing, depository, and custodial services. IndusInd Bank's own capital markets business has a client base of over 500 brokers.
The transaction will be completed in three months subject to regulatory approvals, the bank said in the statement.
According to information available on its website, IL&FS Securities Services is 81.2 percent owned by parent IL&FS. Of the remaining stake, 9 percent is owned by IL&FS Employee Welfare Trust, 4.75 percent by Japan's ORIX Corporation and 5 percent by Croupier Prive Mauritius.
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