A US-based private equity fund is close to picking up a minority stake in Angel Infin Private, the holding company of domestic brokerage house Angel Broking.
International Finance Corporation (IFC), the private equity arm of World Bank, is another strong contender in the race. Two private equity investors, one each from Europe and Asia respectively, have also evinced an interest in the stake sale.
The due diligence process has been completed and only the final financial negotiations remain, according to sources. The deal is likely to be formally announced shortly. The valuation of the group is close to Rs 1,200-1,300 crore.
The new investor will be issued fresh equity in Angel Infin Private. Angel expects to raise Rs 150 crore from the investor to fund its retail expansion, taking the number of its branches from 80 to 260 in smaller cities.
The company plans to garner around Rs 250 crore through private placement in two tranches. It will raise around Rs 150 crore in the first tranche by diluting around 10-15 per cent. In the second tranche, by next year, it would mobilise another Rs 100 crore by diluting 5-7 per cent holding.
Read more in The Business standard article.
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