Citi Venture Capital International (CVCI), the private equity arm of Citigroup, has picked up around 14.5 per cent in the Delh-based Globe Capital for Rs 168 crore. At this price the company is being valued at over Rs 1,000 crore.
While confirming the deal, Ashok Agrawal, chairman of Globe Capital, said Citi had invested $42 million for a minority stake in the company.. The company would use the proceeds for expanding into the retail segment and margin financing, he added. Globe Capital had reported a net profit of Rs 70 crore on a gross income of Rs 130 crore in the first nine months of 2007. Last fiscal, the company posted a net profit of Rs 50 crore.
One of the leading clearing members in the futures and options (F&O) segment, the company plans to expand overseas and has already established operations in Dubai through a subsidiary and plans to acquire ICON Capital, a member of the London Stock Exchange. “We are also looking for acquisition of smaller companies in the domestic market that have large retail networks, Agrawal said.
Sources said the company was also in preliminary discussions with a couple of private equity firms to raise around Rs 250 crore by divesting 10-12 per cent stake. After the Citi transaction, the promoters hold around 75 per cent stake in the company.