The deal has been finalised last week and an announcement is likely today or later this week.
Despite the bearish market, ERI’s stock broking operations had made a net profit of Rs. 4.9 million in the first nine months of 2012/13 financial year, as opposed to Rs. 5.2 million a year earlier. Its revenue amounted to Rs. 43 million, up from Rs. 42 million in the first nine months of FY11/12.
The effective price to be paid by Dunamis could be lower depending on the level of outstanding debt to be collected. For ERI, the sale signifies a capital gain, in comparison to Rs. 150 million it paid when acquiring the license of HNB Stockbrokers.
Dunamis Capital also owns 69% of First Capital Plc whilst the Group is the controlling shareholder of Orient Finance.
Major shareholders of Dunamis Capital include First Capital Markets Ltd./Nextventures Ltd. (21%), Manjula Mathews (21%), Janashakthi Ltd. (15.5%) and Dinesh Schaffter (16.5%).