VCCircle

Financial services space will go down as the single most active sector this year from a deal perspective with about two dozen deals being announced in this space alone. Close on the heels of $191 million capital infusion in India Infoline and in its insurance subsidiary by Singapore's Orient Global, another global investor, State Bank of Mauritius, is interested in picking up a stake in Mumbai based merchant bank Centrum Capital, according to The Economic Times. Centrum is a full service investment bank with merchant banking and broking services, besides undertaking distribution of financial products.
SBM, which had acquired a minority stake in the Kolhapur-based private bank Ratnakar Bank where Centrum also has a 7 per cent stake, is said to be interested in buying under 15 per cent in the company. The report adds that SBM has valued Centrum at Rs 1,800 crore, which has been rejected by the firm. The paper quotes an unnamed Centrum official as saying: “State Bank of Mauritius approached us to acquire an equity stake in the company. However, we cannot agree with the valuation which they have given to us. We expect a much higher valuation because all our business are growing, Currently, we are in the process of restructuring our business operations and we will actively look for a stake sale after few months.” Centrum Capital is listed on Bombay Stock Exchange, and its stock has hit the 5 per cent upper circuit at Rs 695 following the news development.
Centrum, incorporated in 1977, is promoted by Chandir Gidwani and the Cassinath Group (of late Khushroo P. Byramjee).