E*Trade buys 4.5% in IL&FS co from Fidelity for Rs 63cr

MUMBAI: Even before E*Trade’s public offer for a 20% stake in IL&FS Investsmart (IIL) hits the market, the US-based on-line broking giant has firmed up its holding in the IL&FS-promoted securities firm by acquiring additional shares from the open market.

On Tuesday, E*Trade bought 31.1 lakh shares, or 4.5% equity, of IIL at Rs 202 per share for Rs 63 crore. The stake was acquired from Fidelity Management and Research in a block deal reported at the NSE. The IIL share price closed nearly 1% down at Rs 204 on Tuesday.

The acquisition, according to market sources, assumes significance in the wake of E*Trade’s offer opening on December 1, 2006. E*Trade Mauritius, in partnership with E*Trade Financial Corporation and Converging Arrows, is making an offer to acquire 1,38,64082 shares of IIL, representing 20% of the equity capital, at Rs 210 per share.

In another block deal, struck on the same day, foreign brokerage house UBS Securities bought 1.33 crore shares of IDFC at Rs 78.6 per share.