MUMBAI: Promoters and individual shareholders in unlisted financial services group ASK Financials are looking to sell the stake to a private equity investor to raise about $75-80 million.
The group has appointed global investment bank Moelis to look for buyers and the initial process has begun, said three people directly involved in the proceedings. ASK Group, a diversified financial services entity, branched out from being a stock broker to wealth adviser, real estate, private equity and portfolio management services.
“The deal will involve primary as well as secondary stake sale. Some of the existing individual investors now want to cash out,” said a person directly involved in the deal. “Depending on the valuation they get, the promoters too might look at selling either part or complete stake in the group.”
When contacted, Sunil Rohokale, who joined the firm in 2008 to lead its real estate investment business and later rose to become the managing director and CEO of the holding company (ASK Group), confirmed that the company has indeed appointed an investment bank to raise capital but denied that the promoters too intend to exit the business.
“We are looking at raising money from a private equity investor to grow our businesses across various platforms. At this point of time, this is all I can share with you,” Rohokale told ET over the telephone.
“The promoters are very mulch committed to continue in the business.” Started by Koticha brothers, Asit and Sameer, in 1983, ASK Group provided stock broking services. In 1993, the company entered into a joint venture with US financial services firm Raymond James Financial.
After 14 years, in 2007, the ASK Group bought out Raymond James’s stake and diversified into wealth advisory services. In 2008, it started a real estate investment fund and later started a joint venture private equity fund with the Pravi group.
The group has invested about Rs 2,500 crore in Indian real estate during the 2010-2015 period and is expected to invest up to Rs 1,500 crore in the next few years in the sector.
The group currently manages assets of over Rs 15,000 crore across seven offices in India and an office in Dubai which manages clients in Gulf countries and Africa, along with an office in Singapore, responsible for real estate and equity investments made in India.
“Some of the top level executives would want to encash their holding in the group,” said another person involved in the deal. According to sources, the promoters and other shareholders along with the primary component would be looking to sell anywhere between 25% and 30% stake in the company.
“Since financial services continues to be a favoured sector by global investors, the deal is expected to see a lot of traction,” said a global investor who has seen the deal.
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Source: Economic Times
