GulfBase Live Support
11/12/2014 07:12 AST
Essel Finance, the financial services arm of Mumbai-based Essel Group, which has inked a deal to pick up 63% stake in Chennai-based VKC Credit and Forex, a money changing services company, is targeting $1 billion sales in 2-3 years.
The new entity, which will be re-christened Essel Finance VKC Forex, will enhance its business from the current portfolio consisting of currency notes, traveller cheque and pre-paid cards.
"As per the deal, we are buying out 28.3% held by Dr Jayam, sister of one of the promoters N Nageswaran. After buying out some more shares held by the current promoters and undertaking a rights issue, Essel Finance will eventually hold 63% in the company. The two promoters – R Venkata Subramaniam and N Nageswaran – will continue to hold the remaining one-third stake, and will run the company," Amitabh Chaturvedi, managing director, Essel Finance, told dna.
"The deal is done. We have informed the Reserve Bank of India. Now, we are awaiting the RBI nod for the share transfer," said Chaturvedi. He, however, refused to give the size of the deal.
VKC Credit and Forex is one of India's leading foreign exchange players. It has 52 offices and 19 franchisees, making it 71 touch points, and over 900 corporate clients. The company holds an RBI licence as an authorised dealer in Category II.
"We are among the top three players, among the five active dealers in the Category II. Last fiscal, we managed Rs 1,600 crore worth of annual sales in currency notes, and $200 million of traveller cheques and pre-paid cards.
This financial year, we will manage up to $450 million in combined sales," said Nageswaran.
According to him, another potential area for growth is outward remittances. "Last year, we managed $70 million from outward remittances. This year, we should come close to $130-140 million," said Nageswaran.
Essel Finance, which recently floated a real estate fund and forayed into SME lending, says the takeover would essentially mean the group's retail foray. "We will bring in capital, brand and financial strength," said Chaturvedi.
Essel Finance also plans to get into financial products distribution business to distribute mutual funds, micro-finance and housing finance products, among others. It will develop synergies with VKC's large network and geographical presence to distribute other financial products and services such as insurance and mutual funds across the country.
The company has already got into private equity, investment banking and non-banking finance company (NBFC) business.
Expanding footprint
VKC Credit and Forex is one of India's leading foreign exchange players
It has 52 offices and 19 franchisees, making it 71 touch points, and over 900 corporate clients
The company holds an RBI licence as an authorised dealer in Category II
DNA India
Ticker | Price | Volume |
---|---|---|
SABIC | 114.77 | 5,915,941 |
US Dollar | 1.00 |
Saudi Riyal | 3.75 |
Derham Emirati | 3.67 |
Qatari Riyal | 3.65 |
Kuwaiti Dinar | 0.30 |
Bahraini Dinar | 0.38 |
Omani Riyal | 0.39 |
Euro | 0.81 |
British Pound | 0.71 |
Japanese Yen | 104.70 |
05/04/2018
Oman has the means to maintain its currency peg and has no plans to change it even though the decline in oil prices has hurt its finances, central bank Governor Tahir Al Amri said.
Oman’s g
Gulf News
02/04/2018
China’s yuan firmed against the dollar on Friday and is set to post its biggest quarterly gain in a decade, as the country attracts capital inflows and US trade frictions bolstered expectations of a
Gulf News
01/04/2018
The US dollar’s share of currency reserves reported to the International Monetary Fund declined in the final quarter of 2017 to a four-year low, as other currencies’ shares of reserves grew, data rel
Gulf News
29/03/2018
The US Dollar Index, a measure of the value of the US dollar against a basket of currencies, teetered and dropped to quarterly lows in March, which also happen to be the lowest the index has been sin
The National
29/03/2018
Turkey’s lira weakened beyond the psychologically important level of 4.0 to the US dollar yesterday, bringing it close to a record low, as concerns about double-digit inflation, and politics, continu
Gulf Times