*IDFC Limited* has bought 26% stake in *Orbis Capital* for a sum of Rs.22 Cr at Rs.11.50 a share to be paid over the next 2 years.
IDFC will hold 12.5% shares immediately, and the rest will be added through conversion of zero coupon bonds over 2 years. The deal adds custodian service business in IDFC’ portfolio and will help in cutting down its costs marginally by using the custodian business for its AMC and brokerage business. Orbis will gain advantage from IDFC’s brand. Post acquisition, *Dr Vijay Kelkar* will rejoin as the chairman of the co. which he earlier resigned to join the Finance Commission. Transaction Note Orbis Capital, founded in April 2009, undertakes custodial services business through its subsidiary *Orbis Financial Corporation*. The company offers custodial services, clearing and settlement services, escrow, stock lending, pension and beneficiary accounting, loan book administration, fund accounting and customized reporting services. The company is also planning to expand its overseas presence through a 100% ownded Singapore- based subsidiary. In march,* SBI* formed a custodial services JV with *Societe Generale* . SBI * *holds 65% in *SBI Custodial Services* and Societe Generale Securities Services holds the remaining 35%. As of June 2009, there were 16 Sebi-registered custodians operating in India. Dominant among them are Citi, HSBC and Deutsche Bank, catering to FII’s, sub-accounts, MFs and insurance companie -- Regards Hardik Shah -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
