Monday, March 19, 2007

Sharekhan to raise funds for expansion

Sharekhan is planning to raise funding for its aggressive expansion plans. Sharekhan is the retail broking arm of Mumbai-based financial services group SSKI. The company has held discussions with investment banks for raising resources. These may be in the form of an initial public offering, private placement, debt or a combination of all of these.

As earlier reported in the media, the promoters of the firm, the Morakhia family, also the single largest shareholder in the company, are not planning to quit the firm as yet. Private equity firm General Atlantic had invested about Rs. 144 crores ($31 mn) in April 2006 in the company through a combination of primary investment in the company and secondary investment through buying out the entire shareholding of First Carlyle Ventures. The other investors in the retail and online brokerage outfit are Intel Capital and a group of funds advised by HSBC Private Equity India.

Sharekhan is among the top five retail brokerage outfits in the country with over 100 branches across 150 cities. The investment banking and the institutional brokerage outfit of the group, SSKI has no fund raising plans.

Read the Business Standard article.

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