Citi, 3 others lead race for Sharekhan stake

Citigroup’s private equity arm Citigroup Venture Capital International, Baring Private Equity, TPG and 3i are the front-runners to acquire an equity stake in Sharekhan, the retail brokerage arm of the Mumbai-based SSKI group.

Some foreign and domestic banks have also expressed their interest in the brokerage firm, while existing private equity investors General Atlantic, Intel Capital and a group of funds advised by HSBC Pvt Equity India, which own about 48 per cent shares in Sharekhan, will look to sell either fully or partially in the current equity sale.

Intel, which owns 5 per cent, and HSBC-advised funds, which own close to 12.5 per cent, have been investors in Sharekhan for long. The other major shareholders are the Morakhias’ (promoters) with 37 per cent stake, while 300 employees together hold another 15 per cent.However, none of the employees would sell their stakes in the current round.

Sharekhan is valued at around Rs.800-850 crore. It is among the top five retail brokerage outfits in the country with over 100 branches across 150 cities.

Read more in The Business Standard article.

Sharekhan may sell 15% to PE players

Sharekhan, the retail broking arm of the Mumbai-based SSKI Group, is raising funds from private equity (PE)players to finance its expansion.A few private equity players have already started due diligence on Sharekhan, which may dilute close to 15 per cent stake. Shripal Morakhia, promoter of Sharekhan, said, “We are planning to dilute close to 15 per cent stake. This will result in a dilution of stakes of all existing shareholders.”

He, however, refused to divulge the amount the company was planning to raise.At present, the Morakhias hold 37 per cent stake in Sharekhan, while its employees hold 15 per cent and the rest is held by General Atlantic, Intel Capital and a group of funds advised by HSBC Pvt Equity India.

In April last year, General Atlantic invested about Rs 144 crore ( $31 million) in the company through a combination of primary and secondary investments through buying out the entire shareholding of First Carlyle Ventures.

Sharekhan is looking at expanding its presence in the country through organic growth. It is among the top five retail brokerage outfits in the country with over 100 branches across 150 cities.