S'pore firm picks stake in Edelweiss NBFC

Deals in the non banking financial company (NBFC) space is gathering space in the new year. An arm of the government of Singapore Investment Corporation (GIC) has picked up a stake in ECL Finance, the NBFC subsidiary of Mumbai-headquartered Edelweiss Capital.

In a filing with the Bombay Stock Exchange, Edelweiss Capital said it has finalized the terms of investment in its subsidiary, ECL Finance, along with a few other investors.

The size of the investment will be Rs 400 crore and it will be through subscription to fresh equity issuance which would comprise 23.3 per cent of the post issue capital of ECL Finance.

Post the fund raising process, the company's shareholding in ECL Finance will be reduced to 62.5 per cent from the existing 74 per cent. The remaining is held by Lehman Brothers.

GIC is already an investor in Edelweiss Capital after it made its first investment in the company in December 2006.