Diversified business conglomerate Essel Group, promoted by Subhash Chandra, is looking to acquire stake in a non-banking finance company (NBFC), to expand its bouquet of offerings in the financial services business, the Business Standard reported citing a top executive of the company.
The group is mulling to acquire 26 per cent equity stake in an NBFC and raise its holding to around 51 per cent at later stage through fresh capital infusion, Amitabh Chaturvedi, the newly-appointed managing director of the group company Essel Finance Advisors & Managers, told the newspaper.
Initially, the company’s plan is to lend money to small and medium enterprises and later add micro finance and housing finance to its bouquet.
The group is looking at close to half a dozen segments within financial services to grow its business including capital market, insurance, lending, asset reconstruction besides white label ATMs.
In the capital market side it is looking at investment banking, asset management, wealth management and broking and distribution. Within insurance, it will focus on general insurance besides insurance broking.
The promoters will bring in capital and will also rope in external investors for the financial sector business which is expected to absorb investment worth Rs 600-700 crore.
Last year Essel Group floated its real estate PE fund with a target corpus of Rs 1,000 crore. The fund would essentially lend money for residential projects in top six metro cities in the country.
The group is largely associated with the media sector as it operates Zee besides also has interests in technology, packaging, infrastructure, education and precious metals.
(Edited by Joby Puthuparampil Johnson)