Press Releases2015

Feb 19, 2015
Essel Finance buy majority stake in VKC Credit & Forex

Essel Finance has inked a deal to pick up 60% stake in Chennai-based VKC Credit and Forex, a money changing services company. The new entity, which will be re-christened Essel Finance VKC Forex, will enhance its business from the current portfolio consisting of currency notes, traveller cheque and pre-paid cards.

VKC Credit and Forex is one of India's leading foreign exchange players. It has 52 offices and 19 franchisees, making it 71 touch points, and over 900 corporate clients. The company holds an RBI license as an authorised dealer in Category II. Essel Finance, which recently floated a real estate fund and forayed into SME lending, says the takeover would essentially mean the group's retail foray. It will develop synergies with VKC's large network and geographical presence to distribute other financial products and services such as insurance and mutual funds across the country. The company has already got into private equity, investment banking and non-banking finance company (NBFC) business.

"The acquisition will give us a retail customer base and enable us to provide value added service to our existing clients. Going forward, the deal will enable VKC Credit to get into export of currency, tie up with global exchange houses and have nostro account with overseas banks," - Amitabh Chaturvedi, Managing Director, Essel Finance.

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