Baring India bags 44.8pc stake in JRG Securities

Kochi, Aug 25: M/s Duckworth Ltd., a 100 per cent subsidiary of Baring Private Equity Partners India, has picked up a 44.8 per cent stake in Kerala-based JRG Securities Ltd. at an investment of USD 35 million.

Announcing this at a press confrence here last night, JRG Securities Chairman T M Venkataraman, Managing Director Regi Jacob and Baring India Partner Munish Dayal said while 26 per cent of the company equity remains with the original promoters the balance is with the public.

Describing the entry of Baring India into JRG Securities as a ''significant step'', JRG Wealth Management Managing Director Giby Mathew said the tie-up would pump in enough resources into JRG Securities to finance its expansion plans and make it one of the leading distributors of financial services in the country.

Mr Regi Jacob said an Extraordinary General Body meeting of JRG Securities held yesterday unanimously approved the proposed USD 35 million investment by M/s Duckworth in JRG, one of the foremost brokerage houses in the country.

Duckworth Ltd. will subscribe 10 million equity shares of Rs 10 each at the rate of Rs 48 per share. It will also subscribe 13 million convertible warrants with an option to subscribe 13 million equity shares with a face value of Rs ten at the rate of Rs 48, Mr Jacob said.

The EGM also approved the subscription of 1.6 million convertible warrants to the promoters of JRG Securities and also decided to increase the company's authorized capital to Rs 40 crore from the current Rs 15 crore.

The EGM also approved a plan to start a Non-Banking Financial Company, with a capital base of Rs 50 crore, in which Duckworth will hold a 43 per cent stake and JRG 57 per cent, Mr Giby Mathew said.

Mr Munish Dayal said the investment in JRG Securities was the first investment by Baring India in the financial services sector in India and one of the largest in the past ten years. Its earlier investments have been in the fields of BPOs and KPOs, IT and Life Sciences.

In the coming months, the company would focus on the expansion of its branch network, technology upgradation and diversification of products, he added.

UNI