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IndusInd Bank has announced that its agreement to fully acquire IL&FS Securities Services Ltd (ISSL) had been terminated due to non-fulfilment of conditions. Earlier this year in June, IndusInd Bank signed a share purchase agreement to acquire IL&FS securities services with Infrastructure Leasing and Financial Services Ltd (IL&FS).
ISSL which was established in 2007, is a capital market intermediary for professional clearing, depository and custodial services and caters to both retail and institutional clients including over 1,000 brokers, FPIs and FIIs.
IndusInd Bank said in a regulatory filing, “The share purchase agreement (SPA) stands terminated as all the conditions precedent were not satisfied within the stipulated time period.” IndusInd Bank also added, “We understand that the newly constructed board of directors of IL&FS has decided to initiate a new process for the sale of its equity interests in ISSL.”
Meanwhile, IL&FS board has initiated the process for divesting its stake in IL&FS Securities Services and ISSL Settlement & Transaction Services, by inviting bidders to purchase a stake in two of its subsidiaries, in order to bring back the debt-laden group into life. The government-appointed board has announced to open a public bidding process.
