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Wednesday, October 17, 2007
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IPO News
Oct 16 2007 5:52PM
Merrill buys 5 pct in India~s Religare before IPO

MUMBAI, Oct 16 (Reuters) - Merrill Lynch <MER.N> has bought a 5 percent stake in Indian financial services firm Religare Enterprises ahead of the company's initial public offering, the Indian company said on Tuesday.

Financial details of the transaction were not revealed.

Religare said in July it planned to sell up to 11.36 million shares through a book-built issue and may issue up to 3.78 million shares to investors before the IPO, which is being managed by Citigroup <C.N> and Enam Financial Consultants.

Merrill's purchase is the latest in a series of moves by foreign firms to buy into Indian brokerages.

Asia-focused bank Standard Chartered <STAN.L> has bought a 49 percent stake in Indian broker UTI Securities Ltd for about $36 million, while Bank Muscat <BMAO.OM> bought 43 percent in brokerage Mangal Keshav.

In March, the private equity arm of Citigroup bought a fifth of India's Anand Rathi Securities, while BNP said it was extending its alliance with India's Geojit Financial Services Ltd <GEOJ.BO> to institutional brokerage. ((Reporting by Himangshu Watts, editing by Ranjit Gangadharan; Reuters Messaging: [email protected] +91 22 6636 9030)) Keywords: MERRILL INDIA/STAKE

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