IFC to buy stake in Angel Broking

International Finance Corporation (IFC), the private sector funding arm of World Bank, is in talks with Angel Broking group to pick up a minority stake in its holding company.

The group is in advanced discussions with four global investors and IFC is one of them. “We expect to finalise an investor soon,” said Angel Chairman and Managing Director Dinesh Thakkar.

The new investor will be issued fresh equity in Angel Infin Private, a holding company of group. Angel expects to raise Rs 150 crore from the investors to fund its retail expansion, taking its branches from 80 to 260 in smaller cities.

The multilateral agency discloses the investment proposal as part of its efforts to enhance the transparency of its activities. IFC said the proposed investment will help Angel introduce new products to serve its clients more effectively.

“The investment is well aligned to the corporation’s strategy to support organisations in their growth phase. This also meets IFC’s objective to promote financial inclusion in India by ensuring access to a broader range of financial savings products,” the agency said in a statement on its website.

Thakkar said the group intends to rope in international player to bring in global expertise and also support Angel’s plan to grow beyond India. The group has developed expertise in retail format which it would like to roll out in other countries as well.

“The new investor can help us to find partner in other countries including developed markets. The group can provide cost and quality benefit through outsourcing some activities (to India),” Thakkar added. (source: Business Standard)