According to source-based information, Infrastructure Leasing and Financial Services (IL&FS) plans to strengthen its presence in the merchant banking business to cater to infrastructure companies.
A top official of the firm is quoted as saying that the firm wants to increase its presence for doing initial public offers and merchant banking activities.
In 2008, the firm divested 73.21 per cent stake in its merchant banking division IL&FS Investsmart to HSBC for around $241.6 million.
Now the company wants to re-enter into this business as the non-compete period has come to an end. IL&FS plans to collaborate with international financial groups and expand its presence in this space, reports suggest.
IL&FS’s focus is not just in the domestic arena. IFIN’s domestic presence is complemented by its foreign offices in London, Singapore, Hongkong and Dubai.
IL&FS group already has one merchant banking outfit – IL&FS Capital Advisors (IL&FS Capital). It was granted registration certificate by the Securities and Exchange Board of India on June 1, 2012.
IL&FS Capital, 100 per cent subsidiary of IFIN, has the mandate to provide a full spectrum of equity capital markets services, using an industry-focused and knowledge-driven approach.