US fund to pick up stake in Angel Infin Private

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.

IFC to buy stake in Angel Broking

International Finance Corporation (IFC), the private sector funding arm of World Bank, is in talks with Angel Broking group to pick up a minority stake in its holding company.

The group is in advanced discussions with four global investors and IFC is one of them. “We expect to finalise an investor soon,” said Angel Chairman and Managing Director Dinesh Thakkar.

The new investor will be issued fresh equity in Angel Infin Private, a holding company of group. Angel expects to raise Rs 150 crore from the investors to fund its retail expansion, taking its branches from 80 to 260 in smaller cities.

The multilateral agency discloses the investment proposal as part of its efforts to enhance the transparency of its activities. IFC said the proposed investment will help Angel introduce new products to serve its clients more effectively.

Read more in The Business Standard article.

Lehman, Warburg, Carlyle eye 20% of Angel Broking

Leading private equity investors Lehman Brothers, Warburg Pincus and Carlyle Group are in talks with Angel Broking to buy a 20% stake in the Mumbai-based retail broking firm.

Angel Broking is the latest to join the PE bandwagon after leading industry players like Motilal Oswal Securities, Edelweiss Capital and India Infoline roped in equity partners in the past. Angel is planning to raise about Rs 200 crore through the placement, pegging the broking firm’s valuation at around Rs 1,000 crore.

Investment banker Rothschild has been given the mandate to find equity partner and the deal is expected to be sewed up by September-end.A 100% retail player, Angel Broking has chalked out an expansion plan under which it has identified 250 new locations in addition to its existing branch network of 70. It offers a range of services like broking, research, investment advisory, wealth management, e-broking and commodities trading to about two lakh clients.Angel Broking records daily business volumes of Rs 1,500 crore and enjoys about 3% market share.

Read more in The Economic Times article.

Angel Broking to dilute 25% stake

Angel Broking, which proposes to enter into insurance and third-party products, plans to invest Rs 600 crore to complement its expansion plans that includes scaling up its branch network from 75 to 250 branches across the country in 3 years.

Angel is planning to raise Rs 250 crore from private equity investors and rest of the amount from internal accruals.

"We would be raising a fund by diluting 25 per cent of our stake in two tranches," Thakkar said adding the company is also planning a huge spend on its already robust online trading business.

Read more in DNA Money article.