Saturday, March 24, 2007

Citigroup Venture to buy 19.9% stake in Anand Rathi

Leading private equity investor Citigroup Venture Capital International is picking a 19.9% stake in Anand Rathi Securities (ARS), a Mumbai-based stock brokerage promoted by former BSE president Anand Rathi.

While announcing the deal on Friday, ARS said the funds will be utilised for the expansion purpose and also for meeting working capital requirements. The company, however, did not disclose the size of the deal and the price at which the stake is being acquired by the US-based fund.

In the past few years, many Indian brokerages have raised funds through the PE route, which has mainly gone into expansion of their businesses. Motilal Oswal Securities, India Infoline, Edelweiss Securities, IL&FS Investsmart and Indiabulls Financial Services are among the brokers which roped in foreign investors when the market was bullish.

Read more in The Economic Times article.

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