Citigroup Venture Capital International, one of the prominent private equity investors in Indian businesses has agreed to pick up a 19.9% stake in leading Mumbai-based broking firm AnandRathi Securities. The funds will be utilized for expansion purposes and also for meeting working capital requirements. The company has not disclosed the size of the deal and the price at which the stake is being acquired by CVC International.
AnandRathi offers broking and other market-related services to its customers through a network of 150 branches and over 200 business associates spread across the country.
AnandRathi has achieved reasonably good presence in retail, institutional broking and has taken a foothold in segments like wealth management, IPO and insurance products distribution. Broking accounts for 50-60% of the business while non-broking activities like investment banking, MF, IPO distribution and advisory services account for the rest.
AnandRathi follows a long list of other Indian brokerage and i-banking firms that raised monies through the private equity route in the recent past. Motilal Oswal Securities, India Infoline, Edelweiss Securities, IL&FS Investsmart and Indiabulls Financial Services are some names that have raised funding from PE firms for growth and expansion.
Read The Economic Times article.
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