IndusInd Bank will purchase 100% of IL&FS Securities Services; all details here

Private lender IndusInd Bank has taken one step ahead to strengthen its business portfolio, as now it has announced an acquisition deal with  Infrastructure Leasing and Financial Services Limited, (IL&FS) and other minority shareholders to acquire 100% of IL&FS Securities Services Limited, (ISSL). The Reserve Bank of India has granted approval for the proposed transaction. IL&FS’s subsidiary specializing in the capital markets business. 

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.”

Sobti said, “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.”

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.

The proposed transaction is conditional on regulatory approvals. However, IndusInd Bank has revealed that the transaction is considered in cash for the share swap. 

In last three fiscal, ISSL’s standalone turnover was at Rs 324.50 crore in FY18, lower from Rs 342.65 crore in but higher from Rs 277.60 crore in  FY16. 

Today, IndusInd Bank was trading at Rs 1,971.80 per piece down by Rs 11.65 or 0.59% on BSE. However, the share price have tumbled by nearly 1% with an intraday low of Rs 1,966 per piece on the index.