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iFAST Corp Signs Share Subscription Agreement To Acquire A Stake In The India Platform Business

  • Published April 12, 2016 3:55PM UTC
  • Publisher Wholesale Investor
  • Categories Company Updates

11th April 2016, iFAST Corp

iFAST Corporation Ltd. (“iFAST Corp” and together with its subsidiaries, the “Group”) has announced a proposed subscription of 10,607,804 new ordinary shares in the capital of Pecuniam Pte Ltd (“Pecuniam”), representing 21.47% of the enlarged share capital of Pecuniam, amounting to a cash consideration of approximately S$1.27 million. Following the subscription, Pecuniam will become an associated company of iFAST Corp. iFAST Corp intends to finance the proposed subscription through its initial public offering (“IPO”) proceeds.

Pecuniam is an investment holding company which wholly owns iFAST India Investments Pte Ltd, a Singapore-incorporated company, which in turn owns a 74.72 % stake of iFAST Financial India Pvt Ltd, an India-incorporated company engaged in the distribution of investment products in India.

The subscription enables iFAST Corp to re-enter India’s investment products distribution platform business, under conditions that the Group believes are relatively more positive at this point of time. In October 2013, i.e. prior to iFAST Corp’s IPO in December 2014, Pecuniam and its subsidiaries (“India business”) were restructured out of iFAST Corp, as among various factors, the India business did not have the necessary licence to efficiently operate an investment products distribution platform.

The India business has since obtained the necessary licence to operate an investment products platform more efficiently, including the handling of clients’ money and the distribution of a wider range of investment products such as bonds and stocks. The Group believes that the proposed subscription gives it access into India’s burgeoning market, as the India business has already been operating an investment platform targeted at B2C and B2B clients since 2009 with the assets under administration (AUA) of Indian Rupee 10.96 billion as at 29 February 2016.

The Group also believes that the proposed acquisition taps on India’s potential strategic role in terms of providing business opportunities to the rest of the Group; the Group expects increased investment flows from investors in India who are looking to invest into a broader and more global range of investment products and services via wealth management centres such as Singapore or Hong Kong, markets in which the Group operates in. The Group also views the valuation of the transaction as attractive, given the increased attention the financial technology sector is generating globally, including India.

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