IDFC to invest in Indian stock broker

India’s Infrastructure Development Finance Company (IDFC) has approved the acquisition of a 33 percent stake in a Mumbai-based private securities firm for an undisclosed amount.

The board of India’s Infrastructure Development Finance Company, which was incorporated in Chennia in 1997, has approved the purchase of a 33.33 percent stake in a privately-held Mumbai-based corporate finance and institutional securities company, SSKI, according to a statement by IDFC.

The amount to be invested by the IDFC was not disclosed. The group indicated that it would work with SSKI to share relationships and expertise to provide investment banking and capital markets services to SSKI clients.

The partnership between the two entities happens in the context of India’s stock market boom, and follows the $32.5 million acquisition of a stake in an online brokerage Sharekhan by US private equity group General Atlantic. General Atlantic didn’t disclose the size of the stake it would hold in Sharekhan post-transaction, but it is understood to be more than 16 percent.

Two other US-based funds, New Vernon Capital and Bessemer Venture Partners, have recently picked up a 9.25 percent stake in Indian broker Motilal Oswal Financial Securities, for Rs 125 crore ($27.85m), according to Bessemer Venture Partners’ website.