India Infoline Ltd. said on Monday that Singapore-based investment group Orient Global would acquire a 6.48% stake in the company through a proposed equity investment of Rs5.55bn (approximately US$141mn).

Orient Global will acquire 32mn shares in India Infoline on a preferential basis, subject to shareholder and other approvals, if any.

The company has been witnessing robust growth in its retail and institutional equities businesses, India Infoline said, adding that the capital provided by Orient Global provides resources for the company's continued development.

The company's Board also approved another proposed investment by Orient Global of US$50mn (Rs1.97bn) for a 10% stake (post-money, fully diluted) in the company's insurance subsidiary, India Infoline Marketing Service Ltd. (IIMSL).

IIMSL does its business through its two subsidiaries, India Infoline Insurance Services Ltd. and India Infoline Insurance Brokers Ltd. The capital provided by Orient Global will be used to expand the company's branch network, establish call centres, invest in new technology and set up training facilities and general corporate purposes.

In November, Orient Global invested US$76.7mn (about Rs3bn) for a 22.5% stake in India Infoline's consumer finance subsidiary, India Infoline Investment Services Ltd.

"As the financial services sector in India continues its extraordinary growth path, India Infoline has emerged as a dominant player in the broking and insurance distribution space. The capital provided by Orient Global will help us further grow these businesses," said Nirmal Jain, Chairman & MD of the company.