We had mentioned Goldman's India Bet a couple of days back in a post here. The NBFC & commodities brokerage part of it they have implemented by picking a 20% stake in Chennai-based Shriram Credit (an NBFC) for Rs 300 crore, making an indirect entry into equity and commodity brokerage business in India. GS reserves the right to further hike it to 25%.
The Indian group is transferring its brokerage and distribution services business to Shriram Credit and bringing in Goldman Sachs as a significant minority partner. The deal values the firm at Rs 1,500 crore ($375 million). Goldman Sachs is routing the deal through its 100% Mauritius-based subsidiary GS Strategic Investments.
Foreign investment norms currently do not allow direct investment in a commodity brokerage firm. However, foreign companies can invest in a firm, which in turn owns a separate commodity brokerage entity. The funds would be used for expansion of its existing and proposed businesses of Shriram Credit.
Read the full article on Economic Times
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment