There is now on the ground evidence of gulf interest in the Indian equity markets. It is not just about private equity or secondary markets, gulf investors are looking at direct participation by picking up stakes in retail brokerage houses like Angel Broking and Sharekhan.
NDTV has learnt that Angel Broking is making a second placement of equity and there are some new entrants in the running.
In its second placement, Angel Broking will raise Rs 250 crore while the first placement last year to IFC for 12.5 per cent was done at Rs 150 crore.
“We will be placing a second round of equity by the end of the year. This will be to finance the margin trading business that we are going to get into. For the first time we have seen interest from gulf investors coming in to pick up the stake and we in talks with several people,” said Dilip Thakker, Chairman, Angel Broking.
In another retail brokerage deal Citgroup's investment arm CVC, which bought into Sharekhan last year is putting part stake on the block.
Sources tell NDTV that CVC is selling 10-15 per cent stake in Sharekhan. CVC currently holds 75 per cent, which it picked up for Rs 700 crore last year.
The company is believed to be in talks with a gulf investor, among others.
Sharekhan promoters are also diluting 2-3 per cent for Rs 150 crore and Barings is said to be the front runner for that stake.
Both CVC and Sharekhan are tightlipped on the issue but sources close to the deal say talks are in advanced stage and likely to be sealed soon. It is no surprise that with just 3 per cent of India's savings invested into the equity markets that it is not market volatility but market opportunity that is upmost on the minds of cash rich investors.
Source: NDTV Profit