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)

Lehman, Warburg, Carlyle eye 20% of Angel Broking

Leading private equity investors Lehman Brothers, Warburg Pincus and Carlyle Group are in talks with Angel Broking to buy a 20% stake in the Mumbai-based retail broking firm.

Angel Broking is the latest to join the PE bandwagon after leading industry players like Motilal Oswal Securities, Edelweiss Capital and India Infoline roped in equity partners in the past. Angel is planning to raise about Rs 200 crore through the placement, pegging the broking firm’s valuation at around Rs 1,000 crore.

The funds will be used to finance Angel’s proposed expansion of branches. It also wants to launch new products such as loan against shares and margin funding, said the source. A 100% retail player, Angel Broking has chalked out an expansion plan under which it has identified 250 new locations in addition to its existing branch network of 70. It offers a range of services like broking, research, investment advisory, wealth management, e-broking and commodities trading to about two lakh clients. “Angel Broking records daily business volumes of Rs 1,500 crore and enjoys about 3% market share,” claimed Mr Thakkar.

(Source: Economic Times)