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Portfolio management services are asset management services for High Networth Individuals (HNIs).
The acquisition is a part of Religare's expansion plans in the portfolio management space, according to a person familiar with the matter.
"Religare has made the acquisition, they have been looking to grow bigger in the PMS space," said the source.
A spokesperson for Religare confirmed the deal, adding that it had also taken on board T.S. Anantakrishnan, an ex-Goldman hand who was working with Prime.
"Religare Portfolio Managers & Advisors (RPMA) has acquired a part of the PMS business of Prime Broking Company India Limited. The team lead by T.S. Anantakrishnan has moved to the Religare platform and are responsible for Alternate/Hedge fund strategies as part of Religare's broader alternatives focused Global asset management platform. All clients who consented to move to Religare had their complete portfolios transferred to Religare," said a spokesperson in an emailed reply to a Business Standard query.
It declined to comment on the assets acquired or the valuations for the deal. An email sent to Prime did not receive a reply.
T.S. Anantakrishnan is designated as Managing Director at Religare.
Prime's PMS business had been hit following a regulatory probe into the company for alleged market malpractices. The National Stock Exchange had barred Prime Broking related entities from trading in July 2013 following an investigation into activities by Prime involving the shares of Gitanjali Gems. It had also halted pay-out, or settlement of the trades under investigation. It declared Prime a defaulter in October 2013.
A number of High HNIs who were part of Prime's PMS business were said to have been affected by the same. Prime had informed shareholders in November 2013 that it had filed a suit against the NSE for losses caused on account of the moves. It had also filed an appeal in the Securities Appellate Tribunal against the order declaring it a defaulter.
Religare had previously picked up the Delhi-based asset management and investment advisory PN Vijay Financial Services in February 2013.
It had also picked up a 70% stake in private equity firm Northgate Capital in the financial year ending in March 2011(FY11). It also acquired a 55% stake in Landmark Partners, involved in the real estate and private equity business. The deal was completed in FY12.
