INDIA BUSINESS WORLD - APRIL 2006
THE MONTH THAT WAS

GENERAL ATLANTIC PUTS RS 144 CR IN SHAREKHAN

LEADING private equity fund General Atlantic (GA) has invested Rs 144 crore in Mumbai-based online brokerage firm Sharekhan, GA has agreed to buy Carlyle group's 15% stake in the company, and will also infuse some additional equity in the company.

Sharekhan will use the proceeds to fund its strategic initiatives. Company officials, however, refused to divulge the total stake to be held by GA in Sharekhan. The brokerage has other two global equity investors — Intel Capital and a group of funds advised by HSBC Pvt Equity India Fund. The company release said these global investors will continue to hold stake in the broking firm.

The broking business is on an upswing as the bull market is raging and volumes and turnover on the exchanges shooting up from both retail and institutional segments. Lately, several foreign private equity firms have shown interest in picking up stakes in local broking firms like Motilal Oswal, Geojit and IndiaInfoline .