US-based private equity fund Croupier Prive has picked up a 5% stake in IL&FS Securities Services (ISSL) for Rs 47.57 crore or about $10 million. ISSL is the commodity business arm of Infrastructure Leasing & Financial Services (IL&FS). The deal values ISSL at Rs 951.40 crore
and involves transfer of 11,89,474 shares to Croupier Prive at Rs 400 per share, reports Economic Times.
The deal will expand Croupier Prive presence in the Indian exchange business. Croupier bought a 5% stake in Central Securities Depository Services Ltd (CSDL), the state-owned share depository company, for Rs 16 crore last year. The stake was bought from Centurion Bank of
ISSL diluted a 5% stake last year to Japanese financial services giant Orix for Rs 36 crore, valuing the firm at Rs 720 crore. Presently IL&FS holds a 85.52% stake in ISSL and IL&FS Employees Welfare Trust holds another 9.48% stake.
ISSL was initially set up as a back office and last year IL&FS transferred the licenses it holds for depository participant, custodian, professional clearing member of commodity and securities
exchanges to it.
ISSL is involved in providing services to commodities exchanges like depository services, custodian services, providing professional clearing services, on the cash and derivative segments of the exchanges and professional clearing services.
Croupier Prive is a limited partner ship firm where it acts as the general partner. It has two members – Horizon Asset Management, a New York firm, and UOB Global Capital, a global asset management affiliate of United Overseas Bank.