Future Capital to invest Rs 100-cr for stake in Centrum arms

Mumbai: Future Capital Holdings, the financial services arm of Kishore Biyani-promoted Future Group, would be investing Rs 100 crore for acquiring majority stakes in two subsidiaries of investment banking firm Centrum Capital.

The board of directors of Future Capital has approved an investment of Rs 75 crore in Centrum Direct Ltd, a wholly owned subsidiary of Centrum Capital and which is engaged in foreign exchange money changing business.

Retail broking:

Future Capital will be picking up a 50.1 per cent stake in Centrum Direct with this investment, the company said in a statement to the stock exchange.

The board also approved an investment in Centrum Wealth Managers Ltd, a company that will undertake activities of retail broking (including portfolio management services) and distribution of financial and insurance products, to the tune Rs 25 crore to pick up 50.1 per cent stake.

Centrum Capital also announced that it would make a preferential allotment of 6.82-lakh shares, aggregating Rs 120 crore, at an issue price of Rs 1,758 to Indvision India Partners, a Mauritius based PE Fund, subject to required approvals.