Venture capital
Future Capital Holding, part of Kishore Biyani's Future Group, and Centrum Capital have decided to part ways in their two joint ventures in wealth management and foreign exchange. Future Capital will take full control of the wealth business while Centrum will acquire the foreign exchange money changing and travel company following the restructuring.
A statement issued by the erstwhile partners said that they have mutually decided on the rearrangement of share holding on their two existing Joint Ventures, FCH Centrum Wealth Managers (FCH CWML) & FCH Centrum Direct (FCH CDL).
"As per the new arrangement, Centrum Capital will buy 50% stake currently held by FCH in the entity FCH Centrum Direct for a consideration of Rs 100 crore. In 2008, FCH had invested Rs 75 crore for 50% stake in this joint venture," the statement said. Post this transaction, Centrum Capital will hold 100% stake of FCH Centrum Direct Limited, which is primarily into the business of Forex money changing and travel solutions.
As part of the same arrangement, FCH will buy out 50% stake of FCH Centrum Wealth Managers from CCL at a consideration of Rs 1 crore. In 2008, FCH had invested 50% stake in this joint venture with CCL for Rs 25 crore. Post this transaction, FCH will hold 100% of this entity.
FCH Centrum Wealth Managers is primarily in the business of Retail Wealth Management.
Speaking to TOI, Rajnish Bahl, MD & CEO, Group Retail Financial Services Ltd Centrum said that the foreign exchange business had close to 600 employees and 100 branches in 45 cities. "The business currently processes one million transactions and has a topline of close to Rs 6,000cr and we plan to double the business with a pan- India presence in over 100cities within three to four year," said Bahl.
The boards of FCH & CCL independently approved these transactions in separate meetings on Friday. The transactions are subject to regulatory approvals. "We are excited about building an excellent broking and wealth management franchise brought to us through the acquisition of FCH Centrum Wealth Managers Ltd. Our exit from the second Joint venture of FCH Centrum Direct Ltd is in line with our already stated strategy in this matter," said V Vaidyanathan, vice-chairman & Managing Direct, Future Capital.
Chandir Gidwani, chairman, Centrum Capital, said that the group would grow its franchise in Forex Money Changing & Travel. "This business forms a part of the core of our retail financial services strategy. We will continue to invest and grow our Wealth Management and High Net worth broking and distribution businesses on the Centrum Broking platform," said Gidwani.
A statement issued by the erstwhile partners said that they have mutually decided on the rearrangement of share holding on their two existing Joint Ventures, FCH Centrum Wealth Managers (FCH CWML) & FCH Centrum Direct (FCH CDL).
"As per the new arrangement, Centrum Capital will buy 50% stake currently held by FCH in the entity FCH Centrum Direct for a consideration of Rs 100 crore. In 2008, FCH had invested Rs 75 crore for 50% stake in this joint venture," the statement said. Post this transaction, Centrum Capital will hold 100% stake of FCH Centrum Direct Limited, which is primarily into the business of Forex money changing and travel solutions.
As part of the same arrangement, FCH will buy out 50% stake of FCH Centrum Wealth Managers from CCL at a consideration of Rs 1 crore. In 2008, FCH had invested 50% stake in this joint venture with CCL for Rs 25 crore. Post this transaction, FCH will hold 100% of this entity.
FCH Centrum Wealth Managers is primarily in the business of Retail Wealth Management.
Speaking to TOI, Rajnish Bahl, MD & CEO, Group Retail Financial Services Ltd Centrum said that the foreign exchange business had close to 600 employees and 100 branches in 45 cities. "The business currently processes one million transactions and has a topline of close to Rs 6,000cr and we plan to double the business with a pan- India presence in over 100cities within three to four year," said Bahl.
The boards of FCH & CCL independently approved these transactions in separate meetings on Friday. The transactions are subject to regulatory approvals. "We are excited about building an excellent broking and wealth management franchise brought to us through the acquisition of FCH Centrum Wealth Managers Ltd. Our exit from the second Joint venture of FCH Centrum Direct Ltd is in line with our already stated strategy in this matter," said V Vaidyanathan, vice-chairman & Managing Direct, Future Capital.
Chandir Gidwani, chairman, Centrum Capital, said that the group would grow its franchise in Forex Money Changing & Travel. "This business forms a part of the core of our retail financial services strategy. We will continue to invest and grow our Wealth Management and High Net worth broking and distribution businesses on the Centrum Broking platform," said Gidwani.
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