New Delhi, Oct 16 (UNI) Religare Enterprises Ltd today said Merrill Lynch's subsidiary Indopark Holdings Ltd has bought a five per cent stake in the financial consulting and brokerage house for an undisclosed sum.
Religare said it will issue around 3.79 million shares to Indopark prior to its upcoming initial public offering (IPO) with a lock-in period of one year.
However, financial details of the transaction were not revealed.
''We feel proud that a global giant like Merrill Lynch is convinced of our business model and has invested in us. Company's CEO and MD Sunil Godhwani said.
Religare said in July it planned to sell up to 11.36 million shares through a book-built issue and may issue up to 3.78 million shares to investors before the IPO, which is being managed by Citigroup and Enam Financial Consultants.
Merrill's purchase is the latest in a series of moves by foreign firms to buy into Indian brokerages.
Religare Enterprises offers a wide range of financial products and services under three categories - Retail Spectrum, Wealth Spectrum and Institutional Spectrum.