Citigroup’s private equity arm Citigroup Venture Capital International (CVCI) is close to acquiring an equity stake in Mumbai-based brokerage house PINC (Pioneer Investcorp) for about Rs 400 crore as deals in the broking industry continue the momentum into the new year.According to sources Delhi-based Chryscapital and Sequoia are the other two private equity funds that are in the race for the stake.
If the deal goes through, this will be CVCI’s third investment in a broking outfit and the first during this calendar year. Last year, CVCI bought a majority stake in retail brokerage Sharekhan(Related Story) for $174 million and another about 20 per cent stake in Anand Rathi Securities(Related Story) for $20 million.
PINC, a stock market-listed company, is promoted by the Gaurang Gandhi family. The promoters hold about 45 per cent stake in the company, employees hold about 15 per cent and the remaining equity is held by the public.
Sources close to the development said initially CVCI would be investing about Rs 170 crore in PINC and the remaining amount would come during the second round of funding. The total valuation of the company is about Rs 800 crore.
Read more in The Business Standard article.
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