Chennai-based Redington (India) Ltd has sold its remaining 14 per cent stake in non-banking finance company (NBFC) subsidiary, Easyaccess Financial Services Ltd (Easyaccess), to Harrow Investment Holding Ltd, Mauritius, as per a stock market disclosure. The firm did not disclose the deal value.
Redington’s promoter Harrow Investment Holding (formerly known as Redington Mauritius Ltd), owns 21.04 per cent stake in the company and is part of Singapore-based Kewalram Chanrai Group.
In January this year, Redington sold 86 per cent stake in the NBFC arm to Harrow Investment Holding. It had previously disclosed in November that it is planning to sell some stake in Easyaccess to its promoter.
IT products distribution major Redington had acquired Easyaccess, an NBFC in 2008, to help finance channel partners in the distribution network. Its investment in Easyaccess is pegged at around Rs 220 crore. It had total assets of Rs 501 crore and generated net profit of Rs 27 crore for the year ended March 31, 2013.
Easyaccess provides finance to the channel partners to enable them not only to carry on their trade, but to grow their business while ensuring better margins for Redington.
Its business activities include factoring of receivables exclusively for Redington, short-term financing to Redington’s channel partners, project finance to system integrators as well as non-Redington customers, etc. Easyaccess was affected by the new RBI norms related to factoring as a business.
Redington, which went public in 2007, is backed by Standard Chartered Private Equity which picked close to 12 per cent a few years ago. Redington also counts US-based global IT products distributor Synnex as a strategic shareholder.
Recently, the firm acquired 48 per cent stake in Turkish IT services firm Adeo for $1.1 million.
Redington scrip closed at Rs 71.80, down 0.07 per cent in a weak Mumbai market on Tuesday.
(Edited by Joby Puthuparampil Johnson)
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