Future Capital Holdings, the financial services arm of Kishore Biyani-led Future Group, has acquired a majority stake in two Centrum Capital group companies, Centrum Direct and Centrum Wealth Managers for about Rs100 crore.
While Centrum Direct is engaged in the foreign exchange money changing business, Centrum Wealth Managers is a retail broking firm that also provides portfolio management services, distribution of financial and insurance products, etc.
Future Capital Holdings has acquired 50.1-per cent stakes in the two companies for Rs75 crore for Centrum Direct and Rs25 crore for Centrum Wealth Managers last week.
The bourses reacted favourably to this news yesterday, with shares of Future Capital Holdings ending around 10 per cent higher at Rs529.50 and Rs.530 at the Bombay Stock Exchange and National Stock Exchange respectively, in contrast to the general bloodbath that ensued in the markets.
Future Capital Holdings is registered as a non-banking financial company. In agreement with Pantaloon Retail India Ltd. (PRIL), the company provides financial products and services at malls, stores and retail outlets in India that are owned, controlled or managed by PRIL and its subsidiaries. It also has an agreement with ICICI Bank for marketing and distributing credit cards offering loyalty points to customers and is also looking to diversify into insurance products and services.