| It will transfer its primary dealership business to a subsidiary and commence proprietary trading in commodities. |
| "We want STCI to work as a non-banking finance company (NBFC) with various businesses being run through subsidiaries. This arrangement will provide flexibility to build profile as player providing financial services under one roof," said G Narayanan, managing director, STCI, after inking the share purchase agreement to acquire UTI Securities here today. |
| STCI has acquired UTI Securities, a brokerage and investment banking outfit, from Specialised Undertaking of Unit Trust of India (SUUTI) for Rs 265 crore. STCI emerged as the highest bidder among three contenders including Standard Chartered and Bank of Baroda. |
| STCI plans to operate the broking outfit as its subsidiary. The primary dealership of UTI Securities, a joint venture with Stanchart, will either be sold to Stanchart or STCI would acquire Stanchart's stake, Narayanan said. |
| STCI plans to start proprietary trading in commodities to diversify its business portfolio. It will also look at enter private equity space to fund various small and medium-sized companies which have a robust business model. These SMEs need funds but are unable to tap capital markets directly. |
| Post acquisition, UTI Securities will seek mandate for mergers and acquisitions, tap business as a global arranger for foreign currency convertible bonds and mandate for American and global depository receipts. |
| It also plans to acquire a majority stake with management control in a Middle East broking house. |
| It is in the process of finalising tie-up for presence in the UK and expand its presence in the US market. |
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