ICICI Ventures, Baring PE To Infuse Rs 500cr In KSBL

Hyderabad: ICICI Ventures and Baring Private Equity Asia will infuse around Rs 500 crore, to pick up a 25 per cent stake in Karvy Stock Broking Ltd (KSBL), part of the Hyderabad-based, Karvy Group. The investment of funds will witness the exit of Pacific Century Group, Hong Kong which held an equity of 20 per cent in KSBL. MAPE Advisory acted as the exclusive financial advisor to Karvy and its shareholders. The investment in KSBL represents Baring Asia''s largest investment in India to date. Advising funds with over $2 billion in assets, Baring Private Equity is investing in Karvy via an undisclosed affiliate. KSBL, which is going through troubled times with restrictions imposed by the SEBI, has over 580 offices covering 350 cities/towns and offers broking services to over 3,50,000 retail investors. The broking firm has plans to expand into the retail sector and set up an NBFC (non-banking finance company), apart from strengthening offices in Dubai and New York and cross border investments through the funds. Karvy''s diversified business line covering everything from stock broking to mutual funds to insurance are a strong competitive advantage which positions it well for further growth.