Financial services provider Karvy Stock Broking (KSBL) is in advanced stages of negotiations to acquire a Non-Banking Finance Company (NBFC).
If all goes well, Karvy expects to seal the deal by next month, a top company official said.
“Four to five NBFCs have approached Karvy with proposals and the company is examining that. Karvy would finalise the target company by mid May,” the official said.
Though Karvy had earlier opted to apply for an NBFC licence, the company would now prefer to buy an established NBFC having a good track-record, the official said.
However the details of the NBFCs, who have been approached by Karvy, are not known. But the company is understood to be in talks with two to three south-based NBFCs.
Karvy is one of the fast growing financial services provider in India and has operations in segments such as stock, commodities and insurance broking, investment banking, mutual funds distribution and depository services.
Late last year, the company had attracted about Rs 500 crore investment from private equity investors, ICICI Venture and Baring Private Equity Asia, by divesting about 32 per cent in Karvy Stock Broking (KSBL).
For the financial year ended March, Karvy had clocked a revenue of about Rs 400 crore.
However, Karvy is unlikely to opt for a deposit taking status for its proposed NBFC business and is eyeing to emerge as a major financer of auto loans and personal loans to retail customers, the official said.
The group has a network of 560 branches in 360 centers and is expected to take it to around 700 in the coming few months.
Besides, Karvy also plans to expand globally. It intends to foray into the Singapore and London markets in the next one year, where it would look into various opportunities in instruments such as foreign securities and commodity derivatives, the official said.
Karvy already has a representative office in Dubai and group company in New York.
Source: Economic Times