Mumbai, Apr 8 (PTI) City-based brokerage Choice Equity Broking is set to acquire 100 per cent stake in Escorts Securities for around Rs 13 crore.
In a statement, Choice said it has entered into an agreement to acquire 100 per cent stake in Escorts Securities, promoted by a family present in the auto business. Escorts Securities was set up in 1996.
In a regulatory filing, Escorts Ltd, the listed parent of Escorts Securities, said it is selling 40.444 per cent stake in the brokerage to Choice for Rs 5.17 crore. The remaining stake in the company is held by entities linked to the promoters of Escorts.
Choice did not share the total consideration for the purchase, but the overall valuation, going by the exchange announcement, comes at about Rs 13 crore.
Escorts Securities had a turnover of Rs 3.96 crore in the last fiscal, and had reported a loss of Rs 1.17 crore. Its networth is Rs 12.33 crore, as per the filing.
“The buyout shall bring in operational synergies and shall augment the profitability of Choice Equity Broking with its increasing clientele,” said Kamal Poddar, Managing Director of Choice International and the holding company of Choice Equity Broking.
He added that Choice is already among the top-30 brokerages in the country and the company will continue to explore more such opportunities.
In 2018, Choice Equity Broking had purchased Kochi-based Inditrade Capital Ltd (formerly JRG Securities) for a consideration of Rs 32 crore followed by acquisition of stockbroking and commodity business of Pune-based NG Rathi group for an undisclosed amount. PTI AA RAM
Disclaimer :- This story has not been edited by Bollyinsidestaff and is auto-generated from news agency feeds. Source: PTI
- According to the source, this news is about Choice Broking to acquire Escorts Securities for Rs 13 cr
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