Orient to invest Rs 555cr in India Infoline

Singapore-based investment group Orient Global will acquire 6.48% stake in domestic brokerage firm India Infoline for Rs 555 crore.

"India Infoline is delighted to strengthen its relationship with Orient Global. The capital provided by Orient Global will help us further grow our broking and insurance distribution businesses," Nirmal Jain, chairman and managing director, India Infoline, said.

Orient Global proposes to invest Rs 555 crore for acquiring 3.7 million shares in India Infoline representing 6.48% of the current equity capital, India Infoline said in a filing with the Bombay Stock Exchange today.

Orient Global would also invest $50 million for 10% stake in India Infoline's insurance subsidiary  India Infoline Marketing Service (IIMSL). IIMSL does its business through two subsidiaries, India Infoline Insurance Services and India Infoline Insurance Brokers.

Orient Global had invested $76.7 million (around Rs 300 crore) in November for a 22.5% stake in India Infoline's consumer finance subsidiary India Infoline Investment Services.

An extra ordinary general meeting of the shareholders would be held on January 18 to clear the issue.