New York-based investment firm The Chatterjee Group (TCG) has agreed to acquire the securities business of IDFC Ltd, outbidding a number of other suitors.
IDFC said in a stock-exchange filing that TCG will acquire an equity stake in IDFC Securities Ltd from IDFC Financial Holding Co. Ltd in one or more tranches over a period of time.
The necessary definitive agreement will be signed shortly. The transaction will conclude on the receipt of the requisite regulatory approvals, IDFC said.
The Chatterjee Group, founded and led by chairman Purnendu Chatterjee, was incorporated in 1989 and invests across several industries. It has made more than $3 billion in investments worldwide, according to its website.
Shares of IDFC were quoting at Rs 37.40 a piece on the BSE on Monday, down 0.4% from previous close.
VCCircle was the first to report last November that IDFC had started a process to sell its securities broking and investment banking unit as part of its strategy to sell non-core businesses.
VCCircle had also reported that ace dealmakers and industry veterans were among the first set of bidders to have expressed their interests in acquiring IDFC Securities.
Last December, IDFC invited fresh bids for its securities broking unit.