NEW DELHI, December 10: The holding company of ANZ Group of Australia, ANZ Funds Pvt Ltd, is planning to acquire 75 per cent equity of Esanda Finanz and Leasing Limited, a non-banking financial company. It proposes to acquire majority equity in Esanda by buying from the existing shareholders on repatriable basis, and investing US $5 million for this purpose.

At present, Esanda's 30 per cent equity is held by ANZ Grindlays Bank (ANZGB) through its Indian branches, while ANZ Information Technology Private Limited (ANZIT) holds 20.89 per cent equity of Esanda. ANZIT is a wholly-owned subsidiary of ANZ International, Singapore.

According to sources, ANZ Funds has submitted a proposal to the Foreign Investment Promotion Board for its investment plans. An investment of US $5 million is proposed for acquiring fully, 30 per cent and 20.89 per cent of the equity held by ANZGB and ANZIT respectively, and the balance 24.11 per cent from individuals and corporate shareholders, at the rate of Rs 35 per share. This will entail an investment of US $3.51 million. They will also subscribe to five year redeemable non-convertible preference share in Esanda, on a repatriable basis, to the extent of the balance US $1.49 million.

Sources said that the proposal is in consonance with the government policy for foreign investment in the NBFC and does not violate any of the prescribed guidelines for investment in NBFCs as the stipulated foreign investment up to 75 per cent which is US $5 million is being brought into India by ANZ Funds in one tranche. ANZ Funds has invested in the subsidiaries of ANZ Group all over the world.

Esanda, incorporated in February 1991 as a public limited company, is a closely-held NBFC promoted by Indian residents. Esanda's present paid-up share capital is Rs 481.60 lakh consisting of 48,16,000 equity shares of Rs 10 each fully paid-up.

Esanda undertakes asset leasing activities of hire purchase and leasing of automobiles, plant and machinery, equipment, and corporate finance including bills discounting. Esanda has also entered into an arrangement with ANZGB to market its car loans and undertake collection activities for these loans.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.