Carlyle raises India Infoline stake to 9 per cent

MUMBAI: US private equity giant Carlyle has raised its stake in financial services firm India Infoline to 9% from 6.7% from the secondary market. The managing director of the Indian unit of Carlyle Devinjit Singh is set to join the company's board.

At Wednesday's closing price of India Infoline of Rs70.75, Carlyle's stake purchase of 2.3% is valued at roughly Rs47 crore.

"The promoters did not need capital at this point in time. So, we thought let's start the partnership by acquiring shares from the secondary market and starting a partnership as India Infoline has plans to diversify into other financial services business," Carlyle's Singh told ET.

India Infoline, in which renowned value investor and academic Shivanand Mankekar holds a stake, is Carlyle's second investment in India's financial services business after HDFC.

The private equity firm has set aside $2 billion to invest in Asian financial services businesses, a release said.

Carlyle, on September 20, increased its holding in India Infoline by buying 52 lakh shares, or 1.8%, of the company equity through the secondary market for Rs40.5 crore.

On the same day, Bharat Parajia, one of the four high-profile officials who quit CLSA to join India Infoline in 2007, sold 10 lakh shares or around 7% of his holding in brokerage. Parajia had subscribed to 25 lakh share warrants at Rs440 each.