Infrastructure Development Finance Company Ltd (IDFC), a leading financial services company focused on infrastructure space, is acquiring 26% stake in Orbis Capital Ltd, a Gurgaon-based custodian firm.
IDFC will buy the stake over the next two years, said a company statement. The financial details of the transaction were not disclosed.
With this, Vikram Limaye, executive director of IDFC will join the board of Orbis.
Orbis, which launched its operation last year, offers a wide range of services for investors to manage their operations securely. The company runs its operation through its subsidiary Orbis Financial Corporation Ltd, and is registered under SEBI.
Limaye said, in the statement, “Orbis is a young and promising company with specialised expertise in custodial services. We are hopeful that IDFC's investment in Orbis will help establish an association that sets new standards in the custody market.”
Atul Gupta, founder & CEO, Orbis Capital, said, “Custody as a service has been available only to large players like mutual funds, financial institutions and FIIs in India. Our business model is to expand the market to the 'under serviced' segments of super HNIs & NRIs, corporates, large private banking groups, pension funds and domestic institutional investors. IDFC as an investor and a partner will help us in our endeavor to expand our custody reach in India.”
Gupta also added that the company would establish its overseas presence through a 100% subsidiary in Singapore, which will help in Indian investors to invest globally and also help them in achieving a multi-market multi-currency portfolio exposure.
Mumbai-based advisory firm Orion Equity Advisors Pvt Ltd has advised Orbis on this transaction.