Future Cap invests Rs 100 crore in Centrum Capital

Future Capital Holdings (FCH), the financial services arm of the Future Group, has invested Rs 100 crore in two subsidiaries of Centrum Capital, which is into foreign exchange and wealth management businesses.

FCH will invest Rs 75 crore into Centrum Direct, engaged in foreign exchange money changing business, for a 50.1 per cent stake.

FCH will also invest Rs 25 crore into a new joint venture company, Centrum Wealth Managers, for a 50.1 per cent stake. Centrum Capital's existing retail broking, portfolio management and financial products distribution businesses will be moved into Centrum Wealth Managers, FCH said.

With the acquisition, FCH has gained access to the 68 strong branch network and over 5,00,000 Centrum customers in the fast growing foreign exchange and wealth management businesses.

FCH plans to get into the full range of financial products, including asset management, retail broking foreign currency, traveler's cheques and foreign currency cards through its retail financial services format, Future Money, and the acquisition gives synergies to get into new areas, the company said.

With the deal, Future Money's points of presence has increased from 115 to 183 locations, enabling access to Centrum's existing customer base for sourcing and selling credit products and adds new revenue streams from the foreign exchange and retail broking businesses.

FCH MD and CEO Sameer Sain, said, "The Centrum partnership is consistent with our strategy to grow our Future Money franchise and to provide our customers with a broad range of products and services. We are pleased to be associated with an innovative and progressive firm such as Centrum Capital."

FCH's stock went up by 4.56 per cent to Rs 533.85 and that of Centrum Capital went up by 4.95 per cent to Rs 1240 in Tuesday's Mumbai market.