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iFast Corp to acquire 21.47% stake in holding company of iFast India platform business
iFAST Corporation has announced the proposed subscription of 10.6 million new ordinary shares in the capital of Pecuniam Pte Ltd for about S$1.27 million. This represents 21.47 per cent of the enlarged share capital of Pecuniam; following the subscription, Pecuniam will become an associated company of iFast Corp.
Pecuniam is an investment holding company which wholly owns iFAST India Investments Pte Ltd, a Singapore-incorporated company, which in turn owns 74.72 per cent 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, said iFast Corp in a statement on Monday.
In October 2013, prior to iFAST Corp's initial public offering in December 2014, Pecuniam and its subsidiaries 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.