JM Financial - Updates
JM Financial Ltd has informed BSE that the Company has been informed by JM Financial Consultants Pvt Ltd (a wholly owned subsidiary of the Company), that at the meeting of the Board of Directors held on March 29, 2008, they have approved to increase its equity stake in the Institutional Equity Sales, Trading & Research Business - JM Financial ASK Securities Pvt Ltd from the current 60% to 100%, subject to necessary regulatory
approvals.
In this regard the following Press Release issued :
“JM Financial Consultants Pvt Ltd (a wholly owned subsidiary of JM Financial Ltd, a listed Company) in its Board Meeting held on March 29, 2008 approved to increase its equity stake in its Institutional Equity Sales, Trading & Research Business - JM Financial ASK Securities Pvt Ltd - from the current 60% to 100%, subject to necessary regulatory approvals. The name of the Company, which presently is JM Financial ASK Securities Pvt Ltd will be changed after closing of the transaction and subject to necessary regulatory approvals.
Early last year, JM Financial Ltd sold its 49% equity stake in its Institutional Equity Business to Morgan Stanley for USD 445 million (approx. Rs 1,767 crore).
In October 2007, JM Financial Consultants Pvt Ltd entered into a joint venture with ASK Group by acquiring a 60% stake in ASK Securities. With the proposed acquisition of the remaining stake, JM Financial Consultants Pvt Ltd will now own 100% in the Institutional Equities business for a total consideration of Rs 139.14 crore.
Mr. Nimesh Kampani, Chairman JM Financial Group said, “This acquisition is part of our on strategy to provide our clients the entire bouquet of financial services and to continue to strengthen the JM Financial brand as a leading financial services organisation. It is an important milestone for our Group and we believe this acquisition will help integrate our capital markets business further. This acquisition reflects and reiterates our determination to act in the best interest of our clients, our shareholders, our employees and our other stakeholders.”
Post the commencement of the joint venture in the institutional equity business, JM Financial has added a team of talented professionals with frontline experience in sales and research to this business, headed by Mr. Sameer Lumba. The institutional equity business will continue to focus on providing superior research-based broking services to institutional clients, both domestic and offshore.”
Tags: JM Financial