Baring India, one of the largest private equity players, decided on Friday to invest up to $35 million in JRG Securities Limited, a premier brokerage in India, through a preferential issue and warrants for a minimum stake of 44.8% in the company.
Announcing the venture at a press conference in Mumbai, Rahul Bhasin, managing partner, Baring India, said: "Baring has significant expertise in identifying superior teams in fast growth verticals and assist them to scale up rapidly. We are happy and excited about our potential association with JRG Securities, as the company has built a strong culture of delivering value to its clients. We are looking forward to leverage our expertise and network to increase JRG's growth prospects multifold."
T M Venkataraman, chairman, JRG Securities, said: "The investment will help us consolidate our position in the retail investment segment while surging ahead in other areas of stock and commodity broking and other financial services. The investment would also help us expand our network. We also plan to strengthen our operations across India and the Middle East."
According to a press note, the deal is subject to approval from the Securities and Exchanges Board of India, the shareholders and other regulatory authorities.
The investment proposal has been approved and recommended in the board meeting of JRG Securities Ltd convened in Mumbai on Friday for subsequent approval in the shareholders' meeting.
The current paid up share capital of the company is Rs 127,923,220. The share capital of the company after the proposed preferential allotment would be Rs 231,744,960.
The company also proposes to form an NBFC from the proceeds of the preferential allotment.
JRG, which entered the capital market in 1992, has over 600 offices across India. In the last one decade, JRG has emerged as a powerhouse in the financial services industry.
Today JRG is one of the foremost brokerage houses, a member of various exchanges in the capital and commodity markets and the insurance sector.
JRG is a member of the National Stock Exchange of India, the Bombay Stock Exchange, the National Multi Commodity Exchange of India Ltd, the National Commodities Derivatives Exchange Ltd, the Multi Commodity Exchange of India Ltd and the Indian Pepper and Spices Trades Association. The company is a full-fledged depository participant of the National Securities Depository Ltd and Central Depository Services (India) Limited.
Baring Private Equity Partners India -- a part of Baring Private Equity Partners Group -- was founded in 1984. It is one of the largest and most dynamic private equity (PE) players in emerging markets with funds under management of over US $ 4 billion and operations in Russia, Latin America, Europe, Asia and India.
In India it is a leading long-term player with interests across sectors like IT / ITeS, life sciences, financial services, FMCG, energy and oil & gas.
The company's India operations started in 1997 with the first India fund which is rated as the best performing fund of 1998 vintage. In India, Barings has approximately half-a-billion dollars in assets under management.