Birlas set to re-enter broking business
The board of directors of Aditya Birla Nuvo is expected to meet on August 20 to ratify the proposal to acquire Chennai-based stock broking firm, Apollo Sindhoori Capital Investments.india Updated: Aug 06, 2008 22:32 IST
The Aditya Birla group will re-enter the stock broking business soon. The board of directors of Aditya Birla Nuvo is expected to meet on August 20 to ratify the proposal to acquire Chennai-based stock broking firm, Apollo Sindhoori Capital Investments (ASCIL).
AV Birla group will acquire 60 per cent equity in the company for about Rs 280 crore — Rs 65 per share approximately. The Birlas will make an open offer to buy another 20 per cent stake in the company, expected to start in the next two weeks.
While the Aditya Birla group spokesperson declined to comment on the issue, the ASCIL spokesperson could not be contacted despite repeated attempts.
Data available with the BSE states that the Reddy family, which runs the Apollo Hospitals, owns 66.32 per cent stake in ASCIL. Individuals, public and financial institutions hold the remaining stake in the broking firm. The ACSIL, which offers trading in equities and derivatives, has over 700 branches across the country and 1.4 lakh customers.
“The Reddys are planning to exit the financial services business as they intend to focus on the core business in the healthcare space,” said a Mumbai-based investment banker, requesting anonymity.
The Birlas have a strong footprint in mutual fund and insurance domain. However, they lack presence in equities and commodities broking.