Carlyle has increased its stake in financial services firm India Infoline Ltd to 9% from 6.7% from the secondary market, Business Standard reported.
The managing director of the Indian unit of US private equity giant Carlyle Devinjit Singh is set to join the company’s board.
At Wednesday’s closing price of India Infoline of Rs 70.75, Carlyle’s stake purchase of 2.3% is valued at roughly Rs 47 crore. Devinjit Singh, said, “The promoters did not see capital at this point in time.
So, we thought let’s start the partnership by acquiring shares from the secondary market and starting a partnership as India Infoline has plans to diversify in other financial services business.”
India Infoline, in which well-known investor and academic Shivanand Mankekar holds a stake, is Carlyle’s second investment in India’s financial services business after HDFC.
The private equity firm has set aside $2 billion to invest in Asian financial services business, the reports said.
On September 20, Carlyle increased its holding in India Infoline by buying 52 lakh shares or 1.8% of the company equity through the secondary market for Rs 40.5 crore.
On the same day, Bharat Parajia, one of the four high-profile officials who quit CLSA to join India Infoline in 2007, sold 10 lakh shares or around 7% of his holding in brokerage. Parajia had subscribed to 25 lakh share warrants at Rs 440 each.
The Carlyle Group is an American-based global asset management firm, specializing in privateequity,based in Washington D.C. The group operates in four business areas like corporate private equity, real assets, market strategiesand fund-of-funds, through its AlpInvestsubsidiary.
The firm employs more than 890 employees, including 495 investment professionals, in 20 countries with offices in the Americas, Europe, Asia and Australia and its portfolio companies employ more than 415,000 people worldwide.
The firm has over 1,300 investment partners in 71 countries. India Infolineis India’s premiere share market and financial news and services portal. It offers advice and execution platform for the entire range of financial services covering products ranging from equities and derivatives, commodities, wealth management, asset management, insurance, fixed deposits, loans, investment banking and other small savings instruments.
