BSE-listed Fortune Financial Services India has entered into a memorandum of understanding (MoU) to acquire Mumbai-based Antique Stock Broking for an undisclosed amount, as per a stock market disclosure.
"The MoU includes acquisition of 100 per cent stake of Antique Stock Broking and an agreement for transfer of investment banking division of Antique Capital Markets with Antique Finance/its subsidiary, subject to applicable regulatory and other approvals and conditions," the company said in the release.
Mumbai-based Antique is a small-size financial services group started almost a decade back by Kriti Doshi, Gagan Chaturvedi and Rohit Kothari. It has three businesses- equities (institutional and HNIs), investment banking and research through its two firms Antique Stock Broking and Antique Capital Markets.
Fortune Financial Services was founded in 1991 by JT Poonja and Nimish Shah, and went public in 1995. It has around 30 branches and 100 franchisees across India offering services like investment banking, equity and commodity broking, distribution, insurance and non-banking financial services in India. Poonja recently quit the board of Fortune Financial.
Sudhir Valia, executive director of Sun Pharmaceuticals, and brother-in-law of founder Dilip Shanghvi, holds 5.4 per cent stake in Fortune Financial along with his wife Raksha. Last year, Valia had also partnered with Telenor after the Norwegian telecom firm broke off its India JV with Unitech.
In July this year, another small public listed firm Sharyans Resources picked 15 per cent stake in Fortune Financial. European investment firm Nogard holds around 14 per cent stake in the firm through an investment made in 2008.
The shares of Fortune Financial were trading at Rs 59.55 per share, down 4.95 per cent On BSE on Wednesday at 3.32 pm.