Edelweiss today has entered into an agreement to acquire Anagram Capital for Rs.164 crores in an all cash transaction.
With a nation-wide network of more than 137 branches and over 1300 sub brokers, Anagram has one of the widest geographical reach among retail broking firms. The company has more than 180,000 clients and estimated total revenues of Rs. 100 crores for the nine months ended December 31st 2009. The company's average daily equity trading volume is approximately Rs.800 crores.
Edelweiss plans to operate Anagram as a 100 % subsidiary with clear focus on continuity and building on the current business and people with investments in research, products, training and technology. Speaking on this occasion, Rashesh Shah, Chairman Edelweiss Group said, “This acquisition is in synch with Edelweiss' plan to expand the retail broking business. We are already one of the leading institutional broking houses in the country and the acquisition of Anagram with its reach and large, high quality and diversified client base will give impetus to Edelweiss' retail broking and distribution businesses. What makes this transaction exciting is the minimal overlap between the broking operations of both the companies. We are also impressed with Anagram's professional management team and the consistent focus on client service and risk management. I welcome all employees, Anagram's clients and partners to the Edelweiss family.”
Sanjay Lalbhai, Chairman Lalbhai Group, promoter of Anagram Capital, said, “Over the last few years, we've built Anagram into one of the most widespread retail stock broking houses and I am happy that in the next phase of its growth it will be part of the Edelweiss group, one of India's most respected financial services companies.”
Mayank Shah, CEO Anagram Capital said, “This transaction is a win-win for Anagram clients and employees. We are confident of being able to bring together Anagram's strong platform with Edelweiss' unique research, technology and breadth of products. I and my team look forward to this excellent combination and believe that this will provide enormous value to ourclients.”
The acquisition is subject to regulatory approvals.
Source: Equity Bulls