Religare may buy another London-based brokerage

Religare Enterprises, a Ranbaxy-promoted group company, is looking at buying yet another London-based broking firm, for around Rs 700 crore.

Though the name of the firm could not be established, sources close to the developments said talks are in the initial stages.

When contacted, an official spokesperson of the company said: "We keep evaluating such proposals as we want to be seen as a global player."

Sources said the proposed acquisition is likely to increase the scope of Religare's institutional broking business.

This move comes close on the heels of Religare's 100 per cent acquisition of London-based investment banking firm Hichens, Harrison & Co for about Rs 400 crore through its subsidiary Religare Capital Markets Ltd.

The listed entity is being acquired through a mix of equity and debt.

On the acquisition of Hichens, a company official said: "This acquisition is the first in the series of several other ventures in the pipeline. It will give the company a firm foothold in the extremely competitive international equity capital markets."

Indian brokerages have been buying assets overseas to acquire technology, learn new business practices and expand their reach.

Earlier, Kochi-based Geojit Securities had acquired a significant stake in Aloula, a Saudi Arabia-based broking firm, and had also set up a joint venture company in Dubai in which it holds 49 per cent.

The acquisitions are expected to gather pace with cheaper available assets overseas and will make it easier to secure private equity funds and offer share placements overseas.