IndusInd Bank is currently trading in the red but in the opening bell session, hit a new 52-week at Rs.1995.
The stock surged on news that it has decided to acquired 100% stake infra lender IL&FS' brokerage unit - IL&FS Securities Services Limited, (ISSL). The Reserve Bank of India has granted approval for the proposed transaction.
The Bank has stated that this acquisition will help it scale up the present Capital Market Business in the Bank and bring new specialised products, hitherto not offered to their clients. ISSL has established itself as market leader with a dominant market share in professional clearing business of Exchange Traded Derivatives. Its robust technology and operations platform clears over 3 million transactions every day on the stock exchanges. This acquisition aligns well with the Bank’s strategy of focussing on differentiated businesses with strong domain leadership.
No financial disclosures about the cost of this acquisition has been made but a definitive agreement for acquisition of 100% ownership against cash has been signed. It would take up to three months to complete the acquisition.