Plus500 to acquire Mehta Equities in strategic expansion into India’s futures market

Plus500 Ltd., a global multi-asset fintech group known for its proprietary trading technology, has announced plans to acquire Mehta Equities Limited, an Indian financial services company, for approximately $20 million. The deal represents a calculated entry into India‘s vast and rapidly expanding financial market, particularly in futures trading, a sector that has experienced exponential growth in recent years.

With more than 150 billion contracts traded in 2024, India has established itself as the world’s largest retail trading market, contributing over 75% of the total global transaction volume. By acquiring Mehta Equities, Plus500 seeks to leverage this momentum, integrating its advanced fintech solutions with a well-established local firm to strengthen its foothold in one of the most dynamic economies in the world.

This move follows a broader industry trend of global financial firms expanding into emerging markets to capitalize on rising retail investor participation and the growing demand for diversified trading platforms. Plus500’s decision reflects the increasing importance of India’s derivatives and equity markets, which have gained prominence as retail investors seek more sophisticated trading instruments.

What Does Mehta Equities Bring to Plus500?

Founded in 1995 by Rakesh Mehta, Mehta Equities Limited has built a strong reputation in India’s financial services sector. The firm provides a range of services, including brokering in futures, options, and cash equities, as well as portfolio management, investment banking, and custodian services.

Mehta Equities operates under the regulatory oversight of the Securities and Exchange Board of India (SEBI) and holds memberships in key Indian exchanges, including the National Stock Exchange (NSE), Bombay Stock Exchange (BSE), and Multi Commodity Exchange (MCX). These credentials make it a valuable acquisition for Plus500, which can now tap into India’s well-established financial ecosystem with a regulated entity already embedded in the market.

By maintaining Mehta Equities’ leadership post-acquisition, Plus500 aims to ensure operational continuity while integrating its proprietary trading technology and global expertise. Rakesh Mehta, the company’s founder, will continue to lead the business, helping to navigate the complexities of India’s regulatory framework and trading environment.

How Will This Acquisition Strengthen Plus500’s Global Presence?

The acquisition of Mehta Equities is not just about entering the Indian market—it’s a strategic step toward expanding Plus500’s global operations in futures trading. The company has been actively growing its presence in the U.S. futures market, and this move allows it to create synergies between two of the world’s largest trading economies.

With India’s futures market offering a diverse range of financial instruments, Plus500 gains the ability to broaden its product offerings to include Indian cash equities, options, and wealth management solutions. This diversification aligns with the company’s long-term vision of becoming a comprehensive multi-asset trading platform, providing seamless access to both institutional and retail investors worldwide.

Additionally, the acquisition will enable Plus500 to enhance its execution and clearing services for both B2B (institutional) and B2C (retail) clients, reinforcing its position as a leading provider of fintech-driven trading solutions.

How Will the Deal Be Financed and When Will It Be Completed?

Plus500 has confirmed that the acquisition will be funded entirely from its existing cash reserves, which stood at approximately $890 million as of December 31, 2024. The $20 million transaction is subject to regulatory approvals and customary closing conditions, which the company expects to finalize in the coming months.

India’s regulatory landscape is known for its rigorous oversight, particularly in the financial services sector. SEBI, which regulates India’s securities and derivatives markets, has implemented stringent compliance measures for foreign entities entering the space. Plus500’s acquisition of a SEBI-regulated firm like Mehta Equities is expected to streamline the approval process, although regulatory scrutiny remains a key factor in determining the final timeline for completion.

What Is the Market Reaction and Investment Outlook for Plus500?

Following the announcement, Plus500’s stock (LON: PLUS) has shown a modest decline, trading at 2,722 GBX per share as of March 25, 2025, reflecting a 0.37% dip from the previous session. However, investor sentiment remains largely positive, with the stock recording a 54.76% increase over the past year, underscoring confidence in the company’s long-term growth trajectory.

Analysts have issued a “Moderate Buy” rating for Plus500, with a 12-month price target of approximately 3,021 GBX, indicating a potential upside of 10.98%. Some projections range between 2,666.50 GBX on the lower end and 3,320.55 GBX on the higher side, reflecting differing views on the immediate impact of the acquisition.

Beyond share price movements, Plus500 has reaffirmed its commitment to shareholder returns, announcing a $200 million distribution through dividends and share buybacks. In 2024, the company increased its dividend payout by 8.40%, reaching $0.87 per share, with analysts forecasting further growth to $0.89 per share in the upcoming fiscal year.

However, the company has faced notable shareholder dissent regarding executive compensation, with a significant portion of investors opposing the remuneration packages of top executives. Despite this, Plus500’s solid financial performance and expansion into high-growth markets like India position it as a compelling investment opportunity.

What Does This Mean for Plus500’s Future Growth?

Plus500’s acquisition of Mehta Equities is a strategic play that aligns with the company’s broader expansion into global financial markets. By entering India—a market with a vast retail trading base, deep liquidity, and a growing appetite for sophisticated financial instruments—Plus500 is positioning itself for long-term success.

The integration of Mehta Equities into Plus500’s operations is expected to enhance the company’s product offerings, create new revenue streams, and solidify its presence in the global futures trading landscape. At the same time, the acquisition allows Plus500 to establish a strong regulatory foothold in India, mitigating entry barriers that often hinder foreign fintech firms.

As regulatory approvals progress and the deal moves toward completion, industry observers will be closely watching how Plus500 navigates this expansion. If successfully executed, the acquisition could significantly enhance the company’s market position, offering both investors and traders new opportunities in one of the world’s fastest-growing financial markets.