HSBC acquires 93.86% stake in Investsmart

Written by Agencies | Mumbai, September 30: | Updated: Sep 30 2008, 23:29pm hrs
Foreign lender HSBC announced the acquisition of 93.86 per cent stake in leading Indian brokerage firm IL&FS Investsmart for Rs 1,311 crore (around USD 296.4 million).

HSBC had acquired a 73.21 per cent stake in Investsmart in May this year, which included a 43.85 per cent stake previously held by E*Trade Mauritius and 29.36 per cent stake holding of IL&FS.

HSBC later acquired an additional 20.65 per cent through an open offer taking its total shareholding in Investsmart to 93.86 per cent.

"The decision to acquire a controlling stake in Investsmart triggered an open offer to public shareholders, through which HSBC has accepted shares equivalent to 20.65 per cent of Investsmart's capital," HSBC said in a press statement issued here.

The acquisition of Investsmart came in line with HSBC's strategy to expand its operations in the Indian subcontinent, which is HSBC's one of the fastest growing markets in the world.

"Investsmart is a great addition to our current operations, which already constitute the second largest foreign banking network in India. We look forward to working with Investsmart's management team and growing this business," HSBC's India Chief Executive Naina Lal Kidwai said in the stament.

E*Trade Mauritius, an indirectly wholly-owned subsidiary of E*Trade Financial Corporation, decided to sell its stake in Investsmart after it suffered losses in the US subprime crisis.