Orient Global, the Singapore – based investment group has pumped in Rs 5,550 million (approximately USD 191 million) in India Infoline on a preferential basis, subject to shareholder and other approvals, if any.
Orient Global will acquire 32 million shares in India Infoline representing 6.48% of the current equity capital.
The company has been witnessing robust growth in its retail and institutional equities businesses. The capital provided by Orient Global provides resources for the company`s continued development.
The board of India Infoline also noted a further proposed investment by Orient Global of USD 50 million (Rs 1,970 million) for a 10% stake (post-money, fully diluted) in India Infoline`s insurance subsidiary, India Infoline Marketing Service (IIMSL).
IIMSL does its business through its two subsidiaries, India Infoline Insurance Services and India Infoline Insurance Brokers. 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 2007, Orient Global invested USD 76.7 million (approximately Rs 3 billion) for a 22.5% stake in India Infoline`s consumer finance subsidiary, India Infoline Investment Services.
Source: My IRIS