Date:29/08/2008 URL: http://www.thehindu.com/2008/08/29/stories/2008082956571700.htm

Business

Aditya Birla Nuvo to buy stake in Apollo Sindhoori

Special Correspondent

MUMBAI: Aditya Birla Nuvo, a diversified conglomerate and part of the Aditya Birla group, on Thursday entered into an agreement with Apollo Sindhoori Capital Investments (ASCIL) to acquire 56 per cent stake in the retail broking company for Rs. 198.80 crore.

“The agreement is another step towards growing the Aditya Birla group’s financial services footprint.

“This move will strategically further strengthen the position of the financial services group as a manufacturer and distributor of value added financial products,” stated a release issued by the Aditya Birla group.

Aditya Birla Nuvo will make an open offer, post-receiving the necessary approvals.

Ajay Srinivasan, Chief Executive, Financial Services, Aditya Birla group, said “The strategic intent of this agreement is to position Aditya Birla Financial Services Group as a broad-based and integrated player in the financial services business.”

Suneeta Reddy, Director, Apollo Sindhoori, said, “We have chosen to retain a 10 per cent stake, as we believe the Aditya Birla group will add substantial value to the company.”