IndusInd Bank signs a definitive share purchase agreement to acquire IL&FS Securities Services Ltd, the securities services subsidiary of IL&FS.
Posted on Thursday, July 5th, 2018 | By IndusInd Bank
Mumbai June 26, 2018: IndusInd Bank Limited (IBL) today has signed a definitive share purchase agreement with Infrastructure Leasing and Financial Services Limited, (IL&FS) and other minority shareholders to acquire 100% of IL&FS Securities Services Limited, (ISSL); IL&FS’s subsidiary specializing in the capital markets business. The Reserve Bank of India has granted approval for the proposed transaction.
ISSL, incorporated in FY 2007, is a leading Capital Market Intermediary offering Professional Clearing of Exchange Traded Derivatives, Depository and Custodial Services. With over 1,000 broker client accounts, FPIs and FIIs, ISSL has a well-integrated product suite across the capital markets value chain including Clearing, Custody, Depository and Fund Accounting.
Speaking of the acquisition, Mr. Romesh Sobti, MD & CEO, IndusInd Bank said, “We are happy to have signed a share purchase agreement with IL&FS to acquire this business. The acquisition will help us scale up the present Capital Market Business in the Bank and bring new specialised products, hitherto not offered by us, to our clients. Over the years, ISSL has established itself as market leader with a dominant market share in professional clearing business of Exchange Traded Derivatives. Its robust technology and operations platform clears over 3 million transactions every day on the stock exchanges. This acquisition aligns well with our strategy of focussing on differentiated businesses with strong domain leadership. We look forward to welcoming ISSL customers and employees into the growing IndusInd Family.”
The proposed transaction is conditional on regulatory approvals.
In compliance with Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, details of the aforesaid acquisition are provided in the annexure.
|1||Name of the target entity, details in brief|
such as size, turnover
|Name of the Target Entity: IL&FS Securities|
FY18 Revenue: Rs. 324.5 cr
FY18 Profit After Tax: Rs. 45cr
|2||Whether the acquisition would fall within|
related party transaction(s) and whether
the promoter/ promoter group/ group
companies have any interest in the entity
|This acquisition does not fall within “related party|
|3||Industry to which the entity being|
|ISSL is a leading Capital Market Intermediary for|
Professional Clearing, Depository and Custodial
|4||Objects and effects of acquisition||Please refer to the press release|
|5||Brief details of any governmental or|
regulatory approvals required for the
|Transaction will be subject to regulatory approvals.|
|6||Indicative time period for completion of|
|Approximately 3 Months|
|7||Nature of consideration – whether cash|
consideration or share swap and
details of the same
|8||Percentage of shareholding / control|
acquired and / or number of shares
|9||Brief background about the entity|
|ISSL was incorporated in FY 2007 as a subsidiary of|
IL&FS. ISSL is a leading Capital Market
Intermediary for Professional Clearing, Depository
and Custodial Services. The entity has
predominantly operations in India while their
customers are both domestic and international.
Date of Incorporation: July 27, 2006
Standalone Turnover for Last 3 Years: FY18-
324.5cr, FY17-342.65, FY16 – Rs 277.6 cr
About IndusInd Bank: IndusInd Bank, which commenced operations in 1994, caters to the needs of both consumer and corporate customers. Its technology platform supports multichannel delivery capabilities. As on March 31, 2018, IndusInd Bank has 1,400 branches, and 2,203 ATMs spread across 713 geographical locations of the country. The Bank also has representative offices in London, Dubai and Abu Dhabi. The Bank believes in driving its business through technology. It enjoys clearing bank status for both major stock exchanges – BSE and NSE – and major commodity exchanges in the country, including MCX, NCDEX, and NMCE. IndusInd Bank on April 1, 2013 was included in the NIFTY 50 benchmark index of NSE and on December 18, 2017 in the 30 stock SENSEX of BSE. In the recently released Kantar Millward Brown’s BRANDZ Top 50 most valuable Indian Brands 2017 report, IndusInd Bank has retained its 12th position and has been ranked No.6 amongst banks as per the Top 50 Indian Brands
- CRISIL AA + for Infra Bonds program
- CRISIL AA for Additional Tier I Bonds program
- CRISIL A1+ for certificate of deposit program
- IND AA+ for Senior bonds program by India Ratings and Research
- IND AA for Additional Tier I Bonds program by India Ratings and Research
- IND A1+ for Short Term Debt Instruments by India Ratings and Research
About Infrastructure Leasing and Financial Services Ltd: Infrastructure Leasing & Financial Services Limited (IL&FS) is one of India’s leading infrastructure development and finance companies. IL&FS is owned by pedigreed domestic and international financial institutions: Life Insurance Corporation of India, ORIX Corporation ‐ Japan, Abu Dhabi Investment Authority, Housing Development Finance Corporation Limited (HDFC), State Bank of India (SBI) and Central Bank of India (CBI). IL&FS has a distinct mandate ‐ catalyzing the development of infrastructure in the country.
For more details on this release, please contact:
IndusInd Bank Ltd.
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