IL&FS Investsmart, the broking and investment banking arm of IL&FS, is expected to file a draft prospectus for its initial public offer (IPO) in another two weeks. The company is planning to raise around Rs 100 crore from the market. | |
| Hemang Raja, managing director and chief executive officer, said the details of filing an offer document with the securities regulator are being worked out. |
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| "Right now we are consolidating our tie-up with new partners." The company will also be holding a board meeting in the first week of May, where a formal decision on its public offering will be taken. |
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| Investsmart will be the third broking company to go public after Indiabulls and India Infoline, whose issue opened for bidding today. |
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| In November last year Softbank Asia Infrastructure Fund LP (SAIF) and E*Trade Financial picked up a 34 per cent stake in Investsmart for Rs 64 crore. |
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| They bought out a part of the stakes held by IL&FS and ORIX Corporation of Japan. After the stake sale IL&FS now holds 51.33 per cent in Investsmart while ORIX continues to hold 14.67 per cent in the broking firm. |
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| E*Trade Financial has routed its investment through its wholly owned subsidiary, E*Trade Mauritius. |
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| The company has been looking at going public for quite sometime now, but was waiting for a strategic partner to join it. |
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| Raja said the IPO would depend on the state of the stock markets and would entail a fresh offering of equity and an expansion in capital. |
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| Indiabulls, the first broking company to go public, offered its shares at Rs 19 a share but since then has had a dream run on the bourses. India Infoline has priced its shares aggressively at Rs 70 to 80 a share. |
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