Baring's Open Offer Will Make It Majority Shareholder In JRG Sec

Baring Private Equity India will come up with an open offer for a 20 per cent additional stake from JRG Securities shareholders. Baring had recently acquired a 45 per cent stake in the Kochi-headquartered stock broking firm for $35 million. The open offer is mandatory if one acquires more than 15 per cent stake in a listed company.

If the open offer is successful, Baring will be the largest shareholder in the broking firm with 65 per cent stake. It may also be possible that the open offer is not subscribed fully. In any case, Baring is most likely to be the majority owner of a stock broking firm.

Earlier Citigroup Venture Capital International had reportedly acquired an 85 per cent stake in retail broking firm Sharekhan for Rs 470-480 crore (the company is yet to announce the deal officially).

Baring to acquire 45 pc stake in JRG Securities

Baring India will acquire 44.8 per cent stake in brokerage house JRG Securities for 35 million dollar through a preferential issue.The deal is subject to approvals from the Securities and Exchange Board of India (SEBI), shareholders and other regulatory authorities.

The Board of Directors on Friday approved the investment proposal for further consent of shareholders, JRG Securities said in communique to the Bombay Stock Exchange (BSE). The paid-up share capital of the company would increase to Rs 23.17 crore after the proposed preferential allotment from the existing Rs 12.79 crore.Shares of JRG Securities today closed at Rs 58.70, down 9.97 per cent, on the BSE.