Birla Nuvo to buy 56% in Apollo Sindhoori

Written by Corporate Bureau | Mumbai, Aug 28 | Updated: Aug 29 2008, 05:41am hrs
Aditya Birla Nuvo Ltd, part of the Aditya Birla Group, has entered into an agreement with Apollo Sindhoori Capital Investments Ltd (ASCIL) to acquire 56% stake in the retail broking company for Rs 198.8 crore. The agreement is another step towards growing the Aditya Birla Groups financial services footprint.

This move will strategically further strengthen the position of the financial services group as a manufacturer and distributor of value added financial products. Aditya Birla Nuvo Ltd will make an open offer, post receiving the necessary approvals.

Ajay Srinivasan, chief executive, financial services, Aditya Birla Group said, The strategic intent of this agreement is to position Aditya Birla Financial Services Group as a broad-based and integrated player in the financial services business. We already have a strong presence across financial services verticals that include life insurance, fund management, distribution and wealth management, security-based lending, insurance broking and private equity. Apollo Sindhoori Capital Investments offers us a well established platform with a capable team that will integrate well into our existing business and further strengthen our presence in the financial services space.

Suneeta Reddy, director, Apollo Sindhoori (ASCIL) said, It gives us immense pleasure to be associated with one of Indias leading business houses and their growing financial services group. It is a win-win situation for our employees and customers who will now have access to a wide array of products and services from one of Indias household brand names. We have chosen to retain a 10% stake, as we believe the Aditya Birla Group will add substantial value to the company.

ASCIL is a leading player with over 10 years of experience in the broking business thereby providing the Aditya Birla Group an established and tested platform to enter this space. ASCIL has a strong distribution network, which will increase the reach and accessibility for the Groups financial services products.