Religare to invest up to $1 bn in asset managers

Religare Enterprises, the Indian financial services company owned by billionaire Malvinder Singh, said it may invest as much as $1 billion buying stakes in asset management companies worldwide.

Religare agreed to buy a majority stake in Northgate Capital LLC, a private equity and venture capital company that manages about $3 billion in assets and has offices in San Francisco and London, the New Delhi-based company said in a statement distributed by PRNewswire.

Religare, controlled by the former owners of Ranbaxy Laboratories, set up its own mutual fund business in 2008 and bought Hichens, Harrison & Co, London’s oldest company of stockbrokers, in the same year. The money manager has said it plans to open 100 branches in the first three years of operation.

Religare shares rose as much as 6.1 per cent, the most in intraday trading in more than five weeks, to Rs 390 in Mumbai. The stock traded at Rs 376.25 as of 9:28 am local time.

Jefferies & Co and Religare Capital Markets Ltd were the financial advisers to Religare Enterprises. Credit Suisse Securities (USA) LLC was the adviser to Northgate, according to the statement.