A dozen bidders are in the race to acquire the local brokerage Sharekhan Securities. Sources close to bidding process said financial bids would be opened on Saturday April 28. Among the bidders are Goldman Sachs, TPG, Blackstone, 3i, City group, e*Trade, Argonaut Group and Baring.

The broking outfit is believed to have been valued at around Rs 800 crore.

Sharekhan, the retail broking arm of the Mumbai-based financial services group SSKI, is among the top 5 retail brokerages in the country with over 100 branches across 150 cities. Shripal Morakhia and his family hold around 37% in the firm. Private equity investors General Atlantic Partners, Intel Capital and HSBC Private Equity together hold around 45% in Sharekhan and the balance by employees.

When contacted by ET, Mr Morakhia said they have received good response from strategic as well as financial investors. "The company is currently at a stage where it requires funds, and as promoters, we do not have resources. I strongly believe that the company should not suffer due to paucity of funds, and hence, we are in the process of inviting investors on board. We will see what is the best option for the company," he said.

Responding to the possibility that Mr Morakhia may exit the company by selling the entire promoter stake, he said: "If the buyer insists on a controlling stake, I won't have an option but to exit."

Some of the existing private equity players — General Atlantic Partners, Intel Capital and HSBC Private Equity — are also looking to exit, if they get a "good valuation".

Foreign financial services majors have been eyeing the booming retail equity brokerage business in India. In May 2006, ABN Amro became the first international banking group to enter the retail equity brokerage space in India through the organic route.

Subsequently in October, French banking group BNP Paribas bought 33% stake in the Kochi-based broking outfit Geojit Securities for Rs 207 crore.

Another US financial services giant Goldman Sachs too will start its brokerage services in India, after it received the clearance from Sebi. Citigroup has also announced its intention to enter the space.