Marking its entry into the lucrative broking space of the Indian market, HSBC , through its subsidiary HSBC Securities and Capital Markets (India) is buying out 73.21% stake in broking and investment banking firm, IL&FS Investsmart for around Rs.1000 crore at Rs.200 per share.
HSBC will acquire 43.85% stake from the largest shareholder, E*Trade, Mauritius and 29.36% from IL&FS. HSBC will also pay Rs 82 crore to IL&FS for a 3-year non-compete agreement.
HSBC will also make an open offer for 20% stake and may even eventually delist the company.
IL&FS Investsmart has a handy customer base of 138,000 customers in 133 cities thus giving a good base for HSBC to expand its business.
Find this article at: http://www.labnol.org/india/corporate/etrade-exit-investsmart-hsbc-joins-in/3321/
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