Mumbai-based 360 ONE WAM Ltd, which counts private equity firm Bain Capital as an investor, has agreed to acquire a brokerage firm and its mutual fund distribution arm for a total of Rs 1,884 crore ($218 million) in a cash-and-stock deal.
360 ONE, which was earlier known as IIFL Wealth Management, said Monday it will pay Rs 600.11 crore in cash and issue its own shares worth about Rs 1,174 crore to buy Batlivala & Karani Securities India Pvt Ltd (B&K Securities). It will also pay Rs 109.89 crore in cash to buy Batlivala & Karani Finserv Pvt Ltd.
The acquisition will help 360 ONE to grow its broking services to retail and institutional clients as well as wealthy and ultra-wealthy individual investors. It will also help the company to grow its equity capital markets business and corporate treasury business, according to a statement by the company.
“This acquisition strengthens our position as a market leader, enabling integration of research, advisory, and execution capabilities across a wider spectrum of services,” said Karan Bhagat, founder-MD and CEO of 360 ONE WAM.
The acquisition comes a little less than three years after Bain Capital invested Rs 3,680 crore in 360 ONE to pick up an almost 25% stake. Bain acquired the stake from General Atlantic and Prem Watsa-led Fairfax. Bain held a 22.82% stake in the company as of Dec. 31, but its share will dilute after the acquisition is completed.
360 ONE is among India’s biggest wealth and asset management firms. It says it advises more than 7,500 wealthy families and has aggregate assets of more than Rs 5.8 trillion ($68 billion) under management. It has over 1,200 employees across five global financial hubs and 27 locations in India.
As part of the deal, Saahil Murarka, managing director at B&K Securities, will join the 360 ONE Group and lead the broking and capital markets business.
B&K Securities is a mid-cap brokerage firm that services foreign and domestic financial institutions. It offers institutional equity broking, merchant banking and research services. It also distributes mutual funds, alternative investment funds and portfolio management services. It also offers corporate treasury services to its clients, which include many funded startups. The company has a team of over 300 professionals.
B&K Securities recorded revenue of Rs 144.22 crore for 2023-24, up from Rs 111.78 crore the year before. Its mutual fund distribution arm, B&K Finserv, posted revenue of Rs 13.38 crore for FY24, up sharply from Rs 1.71 crore the year before.
