Private equity fund Texas Pacific Group (TPG) and global financial services major Citigroup have put in their bids to acquire nearly 40 per cent stake held by the promoters in Sharekhan. The bids peg the valuation of the retail brokerage firm at Rs 600-650 crore.The bidders were also open, the sources said, to acquiring the non-promoter holding. The employees, who hold over 15 per cent stake, may sell their stake as well.
Citigroup has been looking to enter the retail brokerage business in India. Other MNCs such as ABN-Amro and BNP Paribas have already forayed into retail broking. While ABN-Amro set up its own business, BNP Paribas picked up 33 per cent stake in the Kochi-based Geojit Financial Services.
Sharekhan is one of the top five retail brokerages with 120 branches and 3,300 employees. The brokerage firm, which plans to increase its branches to 500 in two years, may get into distribution of insurance and mutual fund products.
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