Global financial giant HSBC plans to acquire 73.21 per cent stake in Mumbai-based IL&FS Investsmart for a consideration of US$ 241.6 million.

HSBC would acquire the 43.85 per cent stake from E*Trade, Mauritius, one of the promoters of IL&FS, while an additional 29.36 per cent from IL&FS.

IL&FS Investmart Limited, a financial services company, provides customized financial management solutions for retail customers, institutional investors, and corporate clients in India.

The acquisition, which would enable HSBC to grow its presence in the domestic brokerage space, will be performed through the group's Indian subsidiaries, including its security arm, HSBC Securities and Capital Markets (India).

Apart from this, HSBC will also make an open offer for acquiring another 20% in the local securities broking company. However, the open offer will be subject to regulatory and other approval.

HSBC will also pay IL&FS US$ 19.4 million or Rs 82 crore as part of a three-year non-compete agreement.