VCCircle

Private equity investor Citigroup Venture Capital (CVCI) plans to pare a part of its 75 per cent stake in retail broking firm Sharekhan. The Economic Times reports that Merrill Lynch and Baring private Equity are potential suitors for the stake in the Mumbai-based company. CVCI chief Ajay Relan has confirmed to the paper that they are indeed looking at bringing in new investors to the broking firm.
CVCI and IDFC had bought out the stake of promoters led by Shripal Morakhia (37 per cent), and private equity investors General Atlantic, Intel Capital and HSBC Private Equity (together 48 per cent) in Sharekhan. CVCI is said to be holding about 75 per cent stake, employees 15 per cent and the rest by IDFC. ET reports Merrill is set to pick up about 10-20 per cent from CVCI in Sharekhan. The valuation is reportedly anywhere between Rs 1,500 crore to Rs 2,000 crore.