IndusInd Bank has entered into an agreement with Infrastructure Leasing and Financial Services Ltd (IL&FS) to acquire 100 per cent stake in IL&FS Securities Services Ltd (ISSL).
The private sector bank, however, did not disclose the cost of acquisition or the price at which ISSL shares were acquired.
ISSL, which was incorporated in 2007 as a subsidiary of IL&FS, is a capital market intermediary for professional clearing, depository and custodial Services.
The proposed transaction, which is expected to be completed in three months, is conditional on definitive agreements and approvals, including regulatory approvals, the bank said in a statement.
ISSL services both retail and institutional clients including over 1,000 Brokers, foreign portfolio investors and foreign institutional investors.
Romesh Sobti, MD & CEO, IndusInd Bank, said, “We are happy to have come to an agreement with IL&FS on acquiring this business. IndusInd is already a player in the capital market business with a client base 500-plus brokers. “This acquisition brings scale to this business, complements our current product offerings and fits nicely into our strategy of creating differentiated businesses with domain expertise.” In FY2016, ISSL reported a revenue of ₹277.60 crore and a net profit of ₹39 crore.