Sharekhan may sell 15% to PE players

Sharekhan, the retail broking arm of the Mumbai-based SSKI Group, is raising funds from private equity (PE)players to finance its expansion.A few private equity players have already started due diligence on Sharekhan, which may dilute close to 15 per cent stake. Shripal Morakhia, promoter of Sharekhan, said, “We are planning to dilute close to 15 per cent stake. This will result in a dilution of stakes of all existing shareholders.”

He, however, refused to divulge the amount the company was planning to raise.At present, the Morakhias hold 37 per cent stake in Sharekhan, while its employees hold 15 per cent and the rest is held by General Atlantic, Intel Capital and a group of funds advised by HSBC Pvt Equity India.

In April last year, General Atlantic invested about Rs 144 crore ( $31 million) in the company through a combination of primary and secondary investments through buying out the entire shareholding of First Carlyle Ventures.

Sharekhan is looking at expanding its presence in the country through organic growth. It is among the top five retail brokerage outfits in the country with over 100 branches across 150 cities.