Wealth management company, 360 One Wealth and Asset Management (WAM) Monday announced the acquisition of Batlivala & Karani Securities and Batlivala & Karani Finserv for ₹1,884 crore. Of the total consideration, ₹200 crore will involve cash and cash equivalent assets.
B&K is a mid-cap brokerage that primarily caters to institutional investors, and provides corporate treasury services to its clients. The company is supported by a team of more than 300 professionals.
The acquisition has been structured as a combination of a stock swap and part-cash transaction. 360 One will pay ₹611 crore in cash and issue 10 million shares of the listed company at ₹1,174.13 per share. Shares of 360 One, which rallied 71% in the past one year compared with 7% gains in the Nifty index, retreated 5% to ₹1,070 Monday.
This strategic acquisition, once completed, is expected to bolster 360 One’s broking platforms across all market segments, including ultra-high-net-worth individuals (UHNIs), high-net-worth individuals (HNIs), retail, and institutional clients.
It will also enhance the company’s equity capital markets business to better serve its existing clientele, the company said in a statement. B&K’s strong presence in the corporate treasury segment will provide additional synergies for 360 One’s client base, it added.
As part of the deal, Saahil Murarka, managing director of B&K Securities, will join the 360 One Group and lead its broking and capital markets business.
On Monday, 360 One reported a profit after tax (PAT) of ₹275 crore for the December quarter, a 41.7% jump from ₹194 crore in the corresponding quarter a year ago. Revenue from operations rose 37.7% to ₹605 crore during the quarter, compared with ₹439 crore last year. Operating profit before tax increased by 37.4% to ₹286 crore during the period, as against ₹208 crore in the previous year.
Last year, 360 One acquired the wealth-tech platform ET Money for a total consideration of ₹365.8 crore, underscoring its efforts to strengthen its foothold in the wealth management space.
Bennett, Coleman & Co, which owns The Economic Times, was the erstwhile owner of ET Money.
Source: Economic Times