CVC International to pick up 19.9% stake in Mumbai-based brokerage firm AnandRathi

Citigroup Venture Capital International, one of the prominent private equity investors in Indian businesses has agreed to pick up a 19.9% stake in leading Mumbai-based broking firm AnandRathi Securities. The funds will be utilized for expansion purposes and also for meeting working capital requirements. The company has not disclosed the size of the deal and the price at which the stake is being acquired by CVC International.

AnandRathi offers broking and other market-related services to its customers through a network of 150 branches and over 200 business associates spread across the country.
AnandRathi has achieved reasonably good presence in retail, institutional broking and has taken a foothold in segments like wealth management, IPO and insurance products distribution. Broking accounts for 50-60% of the business while non-broking activities like investment banking, MF, IPO distribution and advisory services account for the rest.

AnandRathi follows a long list of other Indian brokerage and i-banking firms that raised monies through the private equity route in the recent past. Motilal Oswal Securities, India Infoline, Edelweiss Securities, IL&FS Investsmart and Indiabulls Financial Services are some names that have raised funding from PE firms for growth and expansion.

Read The Economic Times article.
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Citigroup VC may invest $15 mn in AnandRathi

Citigroup VC may invest $15 mn in AnandRathi

Citigroup Venture Capital (CVC) is in talks to acquire 10-15% stake in Mumbai-based securities and wealth management firm AnandRathi Securities for around Rs. 70 crores ($15 mn). AnandRathi proposes to come out with a public issue in the next financial year. CVC is in the fray along with a couple of more private equity funds and the deal is expected to be closed within the end of the current fiscal.

This is the first time in 12 years since its establishment that AnandRathi is expected to receive private equity funding. The company offers the entire gamut of financial and advisory services including wealth management, investment banking, corporate advisory, brokerage and distribution of equities, commodities, mutual funds and insurance. Besides having a pan-India presence with 300 offices, it has international presence through its offices in Dubai and Bangkok. AnandRathi also runs a Rs. 150-crore realty fund focusing on partnering with developers in Tier-II cities to cater to the growing demand for quality residential space in these cities and also earmark some investments in rental income yielding office properties. AnandRathi is also planning to launch an overseas $75 mn fund.

Read the Business Standard article.