Japanese financial services major Orix Corporation, which holds 14.67% stake in the domestic financial services firm IL&FS Investmart, will fully exit from the Indian venture by transferring its stake to promoter IL&FS.The transfer of Orix's stake will be at the IPO offer price of IL&FS Investmart.The initial public offering (IPO) of IL&FS Investmart, which opened for subscription yesterday, is at a price band of Rs 110 and Rs 125 per equity share of Rs 10 face value.Orix Corporation, based in Tokyo, had subscribed to 27.59% stake in IL&FS Investmart in March 2000, but at various stages, reduced its stake to 14.67% prior to the public issue.IL&FS, whose stake would go up to 66% after the transfer of Orix Corporation's holdings, would reduce its stake to 46.81% post-IPO, said Sandeep Presswala, COO (retail business) of IL&FS Investmart, making a presentation on its IPO today.The IPO comprises of a fresh issue of 8.8 million equity shares and offer for sale of 2.6 million equity shares.On future plans, Presswala said the IPO funds would be used to increase its branch network in India and overseas. The company plans to open five branches overseas at Dubai, Hong Kong, Singapore, New York and London, he said.In India, IL&FS Investmart has a total of 163 branches in 62 cities, serving about 55,000 clients, he said.For the year ended March 31, 2005, IL&FS Investmart has posted a net profit of Rs 33.13 crore on a turnover of Rs 113.7 crore, compared to previous year's Rs 22 crore profit on a turnover of Rs 82.64 crore.
