IDBI Capital, a wholly owned subsidiary of IDBI Ltd, is planning to sell 26 per cent stake to a strategic foreign partner to boost its institutional broking business.
Sources said the company, which is into stock broking, internet trading, merchant banking and private equity, has held informal talks with foreign players and is finalising a merchant banker for the deal.
IDBI Capital could command a valuation of more than 4-5 times its net worth of Rs 350 crore. They also do not rule out the possibility of a higher stake sale (up to 49 per cent) depending on the valuation.
Bear Stearns, the biggest debt player in the US and the Australia-based Macquarie, who are keen on entering the Indian market, are two contenders for the stake purchase, said sources.
IDBI Capital is also into retail broking through its internet portal, corporate advisory and debt arranging & underwriting. It has a turnover of more than Rs 10,000 crore a year in the broking business. Last month, IDBI Capital increased its private equity corpus to Rs 150 crore.
Read more in The Business Standard article.
No comments:
Post a Comment