UPDATE 1-India's Aditya Birla Nuvo to buy Apollo Sindhoori

(Adds detail, shares)

MUMBAI, Aug 28 (Reuters) - Diversified Indian firm Aditya Birla Nuvo Ltd (ABRL.BO: Quote, Profile, Research) said on Thursday it would acquire 56 percent in Apollo Sindhoori Capital (APOL.BO: Quote, Profile, Research), expanding its financial services portfolio in a fast-growing market.

Aditya Birla Nuvo, which has interests ranging from textiles to telecom, said it would buy the stake in the retail broking firm for 1.99 billion rupees ($46 million) and make an open offer for a further 20 percent, as required by law.

The founders of Apollo Sindhoori will retain a 10 percent stake in the company, according to a statement.

"Apollo Sindhoori offers us a well established platform that will further strengthen our presence in the financial services space," Ajay Srinivasan, chief executive of financial services at the Aditya Birla Group, said in the statement.

The Aditya Birla Group has a presence in fund management, wealth management, insurance broking and private equity. It also has a joint venture with Sun Life (SLF.TO: Quote, Profile, Research) for life insurance.

The acquisition enables entry in the retail broking space and also gives the Aditya Birla Financial Services Group a trading facility in equities, derivatives and commodities, it said.

Shares in Aditya Birla Nuvo were down 0.2 percent at 1,306 rupees at 0916 GMT, while Apollo Sindhoori was up 8.4 percent at 57.35 rupees in a weaker Mumbai market.

Indian conglomerates including the Aditya Birla Group, the Tata Group and Reliance ADAG are quickly expanding their financial services offerings to tap a fast-growing economy where rules in the sector are expected to ease.