| Following the announcement, Parsoli shares gained sharply on the Bombay Stock Exchange (BSE). The shares closed at Rs 26.60 on Friday last, up 9.69 per cent. The shares gained over 47 per cent since December 30, 2005, and more than 31 per cent from the one month-ago price. |
| Sources said the stake acquisition deal, which would also include technical collaboration, is likely to be at around Rs 26 per share. |
| Analysts said Parsoli would leverage the Baader acquisition to price its proposed public issue, for raising around Rs 35 crore. |
| Uto Baader, chairman of the German trading house, is expected to join the board of directors of the Indian firm, after it clears Baader's proposal to acquire a stake on January 10. |
| Sources in Parsoli said the company would make a preferential allotment to the German brokerage firm. Baader said its strengths lie in negotiating equity capital transactions, refinancing, securities and resolution of interest rate structure risks. |
| Parsoli is largely into Islamic investment advisory with the major portion of the business, 80 per cent, coming from the Muslims who shun companies dealing in certain activities like gambling, contests, liquor, entertainment, hotels, banking and financial services. Shariah, the Islamic law, prohibits investment in these companies. |
| The sources said the first product to be launched by the Parsoli-Baader combine would be a hedge fund targeted at investors in Germany and the Middle-East, as Baader has strong capabilities in managing hedge funds. |
| With Baader becoming a strategic partner, Parsoli plans to expand its business activities. In this regard, the company intends to look beyond the Islamic practices and also foray into the institutional broking services space. |
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