IDFC buys a third of SSKI

Mumbai, April 29 | Updated: Apr 30 2006, 06:40am hrs
The board of Industrial Development Finance Corpor- ation Ltd (IDFC) has approved the acquisition of 33% equity stake in Mumbai-based S S Kantilal Ishwarlal Securities Pvt Ltd (SSKI). SSKI is privately held domestic corporate finance and institutional securities company.

Terms of the deal will be available after the transaction closes in couple of months, executive director of IDFC, Vikram Limaye, said. General Atlantic Partners recently bought stake worth Rs 140 crore in SSKI; details of the stake size were not revealed.

Through this investment, IDFC and SSKI propose to work together by pooling their relationships and expertise to provide investment banking and capital markets solutions to clients. IDFC would nominate two directors on the board of SSKI, IDFC said.

Releasing results for the final quarter of fiscal 2006, IDFC posted a 25.02% decline in profit after tax at Rs 73.55 crore for the quarter ended March 31, as compared to Rs. 98.10 crore for the same quarter in 2004-05. Total income increased 2.30 % to Rs 256.74 crore for the quarter from Rs 250.96 crore last year.

For the year to March 31, IDFC reported a net profit of Rs 375.64 crore as compared to Rs. 304.02 crore a year ago and the total income increased to Rs. 1015.71 crore for 2005-06 from Rs. 727.64 crore in 2004-05. IDFC board has also re-appointed Deepak Parekh as chairman.