Aditya Birla Group acquires majority stake in brokerage firm Apollo Sindhoori Capital Investments

28 August 2008

The Aditya Birla Group's diversified conglomerate Aditya Birla Nuvo Ltd, today entered into an agreement to acquire a 56-per cent stake in retail broking firm Apollo Sindhoori Capital Investments Ltd for Rs198.8 crore.

After receiving regulatory clearances, Aditya Birla Nuvo plans to make an open offer.

"The strategic intent of this agreement is to position Aditya Birla Financial Services Group as a broad-based and integrated player in the financial services business," says Ajay Srinivasan, chief executive, financial services, Aditya Birla Group.

"We already have a strong presence across financial services verticals that include life insurance, fund management, distribution and wealth management, security based lending, insurance broking and private equity. Apollo Sindhoori Capital Investments offers us a well established platform with a capable team that will integrate well into our existing business and further strengthen our presence in the financial services space," he says.

The management of Apollo Sindhoori expects the Birla Group asociation to add substantial value the brokerage and has opted to retain a 10-per cent stake.

Suneeta Reddy, director, Apollo Sindhoori, says the deal is a "win-win situation for our employees and customers who will now have access to a wide array of products and services from one of India's household brand names.