Orient Global puts Rs 700 cr in India Infoline
Singapore-based private equity fund Orient Global invests over Rs 750 crore in Mumbai-based financial services firm India Infoline, reports Indulal PM.business Updated: Dec 24, 2007 22:07 IST
Singapore-based private equity fund Orient Global has invested over Rs 750 crore in Mumbai-based financial services firm India Infoline.
Orient has invested over Rs 555 crore in the holding company, India Infoline to acquire 37 lakh shares representing 6.48 per cent of the equity capital of the company. It has also invested Rs 197 crore for a 10 per cent stake in India Infoline's insurance subsidiary, India Infoline Marketing Services Limited.
The funds would be used for the company's technological and human resources expansion, a top company official has said.
"We are planning to increase our network and also our call centre facility. We are planning to make huge investments to upgrade technology," said R Venkataraman, co-promoter and executive director, India Infoline.
Currently, the company has a presence in 345 centres. "We are planning to increase the number of locations -- mainly in category A and B cities across the country," he said. The company has a call centre facility that employs over 1,500 people, which it plans to expand.
Last month, Orient Global invested over Rs 300 crore for a 22.5 per cent stake in India Infoline's consumer finance subsidiary, India Infoline Investment Services Limited.
As the financial services sector expands rapidly, foreign fund houses including Citigroup, Lehman Brothers and BNP Paribas have been expanding their Indian operations through the acquisition of stakes in domestic financial services firms.
Recently, French banking giant BNP Paribas picked up 33.5 per cent in Kerala-based Geojit Financial Services, while Citigroup picked up a 19.9 per cent stake in Anand Rathi Securities. Lehman Brothers picked 51 per cent stake in Brics Securities, while a consortium led by the US financial services firm picked up 5 per cent in Edeilweiss Securities in a pre-IPO placement.