Singapore-based private investment firm Orient Global plans to acquire 6.48 per cent in financial services provider India Infoline Ltd, for Rs555 crore (approximately $141 million) on a preferential basis.
The divestiture will enable the Indian firm to boost its retail and institutional equities businesses.
Orient Global also proposes to invest another $50 million for a 10-per cent stake (post-money, fully diluted) in India Infoline's insurance subsidiary, India Infoline Marketing Service Ltd (IIMSL).
IIMSL does its business through its two subsidiaries, India Infoline Insurance Services Ltd and India Infoline Insurance Brokers Ltd. The capital provided by Orient Global will be used to expand the company's branch network, establish call centres, invest in new technology and set up training facilities and general corporate purposes.
In November the Singapore firm invested $76.7 million for a 22.5-per cent stake in India Infoline Ltd's consumer finance subsidiary, India Infoline Investment Services Ltd.
"As the financial services sector in India continues its extraordinary growth path, India Infoline has emerged as a dominant player in the broking and insurance distribution space," said Nirmal Jain, chairman and managing director. "The capital provided by Orient Global will help us further grow these businesses."
Orient Global was founded by New Zealand-born Richard Chandler in 2006, who was formerly co-founder and chairman of Sovereign Global Investment in 1986, a pioneer in emerging markets investment providing capital to industries and commerce from Asia and Africa to Latin America and Eastern Europe.