Religare Enterprises may buy another London-based brokerage

Religare Enterprises, a Ranbaxy-promoted group company, is looking at buying yet another London-based broking firm, for around Rs 700 crore. However the name of the firm could not be established at present. This move comes close on the heels of Religare’s 100 per cent acquisition of London-based investment banking firm Hichens, Harrison & Co for about Rs 400 crore through its subsidiary Religare Capital Markets Ltd. According to a company official, Hichens acquisition is the first in the series of several other ventures in the pipeline.

Indian brokerages have been buying assets overseas to acquire technology, learn new business practices and expand their reach. This acquisition will give Religare firm foothold in the extremely competitive international equity capital markets and will increase the scope of its institutional broking business.

Earlier, Kochi-based Geojit Securities had acquired a significant stake in Aloula, a Saudi Arabia-based broking firm, and had also set up a joint venture company in Dubai in which it holds 49 per cent. The acquisitions are expected to gather pace with cheaper available assets overseas and will make it easier to secure private equity funds and offer share placements overseas.