Financial services finds feet in Essel group

MUMBAI: Two private equity companies are in advanced talks to acquire around 20% stake in Essel group’s latest and arguably the fastest growing financial services venture, said two people close to the development. One of the two bidders already has significant investments in an Indian bank.

Essel group recently bought 62% in public-listed LKP Finance, which will be completed after the mandatory open offer for the company’s shares at Rs 198 apiece scheduled to end on October 4. LKP, which is ready for a corporate restructuring, has got the approval from the Reserve Bank of India for the exercise.

The consolidated new structure is likely to have a net worth of about Rs 600 crore with four major operating areas, and plans to grow two more. With this, the financial services vertical will turn overnight from a clutch of small units to an aspiring runner-up within Subhash Chandra-owned Essel group.


LKP Finance, which will be renamed Essel Capital, will become the holding company, said one of the two persons. Thereafter existing non-banking financial services operations, for which the group got a licence in July 2014, will be merged with LKP.