Orient Global picks 22.5% in India Info arm for $77m

India Infoline has inked a $76.7 million equity deal by selling stake in its consumer finance subsidiary India Infoline Investment Services (IIIS) to Singapore-based Orient Global. The latter has picked up a 22.5% stake in IIIS.

As per a company release, the capital would be primarily utilised for the expansion of IIIS’s subsidiaries, Moneyline, dealing with personal and auto loans and India Infoline Housing Finance.

Moneyline will leverage the group’s 600-branch network to provide credit to a wide clientele which does not have access to organised credit. Moneyline plans to have an active presence in 60 cities by the end of next year.

Read more in The Economic Times article.

India Info to sell 26% stake in arm for $100 mn

Leading foreign investors like Goldman Sachs and Blackstone are in final stages of negotiations to buy 26% stake in India Infoline Distribution Co (IILD), the distribution subsidiary of the brokerage firm India Infoline. The investors are willing to offer $100 million for the strategic stake in IILD.

The Mumbai-based broking firm’s move to offload stake comes after the proposed deal with Merrill Lynch fell through. Merrill Lynch, which had shown interest to invest in the subsidiary, later backed off citing technical reasons.India Infoline vice-president (planning and strategy) Harshad Apte confirmed that they are in talks with some funds.
However, he refused to divulge any further details. “We cannot give any specific names,” he said. On Friday, shares of India Infoline rose 2.50% to close at Rs 1,114.90 on the Bombay Stock Exchange.

Read more in The Economic Times article.

Related Post:
India Infoline scraps credit arm sale
Merrill Lynch eyes stake in India Infoline distribution arm

India Infoline to dilute 40% in retail finance firm

India Infoline, one of the leading retail brokerage houses, is venturing into the consumer finance business in a big way.The company is looking for private equity funding or a strategic partner for its new venture, India Infoline Finance Holding (IIFH). The newly formed holding company for retail financing business will be valued at Rs 800-1000 crore.

India Infoline will infuse around Rs 200 crore into IIFH directly, and around $100 million would be raised either through private equity or stake dilution to the extent of 30-40 per cent.

Sources close to the development said that negotiations are in an advanced stages with prospective investors. The company is banking on a huge network of 540 branches across the country and a ready retail clientele.

Indiainfoline has called off its partnership with DSP Merrill Lynch, which was holding equity in India Infoline. Senior employees of Citi Financial Group, who had joined DSP are now with India Infoline.

Read more in The Business Standard article.

India Infoline scraps credit arm sale

India Infoline which signed an agreement last year with DSP Merill Lynch to sell its shareholding in subsidiary Moneyline Credit Pvt Ltd (formerly Khambhat Investment & Trading Company Private Limited), has called off the deal citing prolonged delays in completing the transaction.

According to a regulatory filings with Bombay Stock Exchange, India Infoline said "owing to prolonged delays in finalisation of the transaction and changed business plans, the MoU was mutually terminated with immediate effect".

Earlier this year, the New York-based Merill Lynch had hiked its stake in India Infoline to 14.10 per cent and had also initiated talks for acquiring a significant stake in India Infoline Distribution Company, the distribution arm of India Infoline for over Rs 150 crore.

Shares of India Infoline ended higher by 0.56 per cent at Rs 436.10 on BSE, compared to Friday's close of Rs 433.65.

Merrill Lynch eyes stake in India Infoline distribution arm

US-based brokerage and investment bank Merrill Lynch has initiated talks with India Infoline for acquiring a significant stake in its distribution subsidiary, India Infoline Distribution Company Limited (IILD). Merrill had recently hiked its stake in India Infoline to 14.10%. It may pick up to 26% in IILD for over Rs. 150 crores. In December 2006, India Infoline sold its stake in the subsidiary Khambhat Investment & Trading Company Private Limited, a non-banking finance company, to Merrill Lynch.

Merrill Lynch plans to enter into the Indian mortgage business, and is accordingly planning a tie-up with India Infoline for the same. The company expects to create synergies with India Infoline as it has a wide retail network of over 200 branches. IILD, apart from the distribution of financial products such as mutual funds, IPOs and fixed deposits, also distributes mortgages and loan products.

Read more in the article in Business Standard.

Merrill eyes stake in India Infoline

US-based Merrill Lynch, which has a strong presence in the institutional broking and merchant banking businesses in India, is set to pick up a controlling stake in India Infoline, a strong player in the retail financial services segment.

As part of the deal, Merrill Lynch, which currently holds about 14% in India Infoline through stocks and convertible shares, will pick up additional stake in the company though issuance of new shares, sources said.

Post the stake buy, the US major would make an open offer to India Infoline shareholders to meet regulatory requirements.

Although sources said India Infoline was close to giving up a substantial stake to Merrill Lynch, Nirmal Jain, CMD, India Infoline, denied any such move.