ASK Raymond’s India partner to buy out 50% stake

ASK Raymond’s India partner to buy out 50% stake
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First Published: Fri, Mar 23 2007. 03 59 PM IST
Updated: Fri, Mar 23 2007. 03 59 PM IST
By Pooja Thakur, Bloomberg
Mumbai: ASK Raymond James Securities India Pvt., a local brokerage, said its Indian partner will buy the 50% stake it doesn’t own in the company from Raymond James Financial Inc.
Ask Investments & Consultants Ltd, founded by Asit Koticha and Sameer Koticha, will continue its institutional broking, portfolio management, investment banking and financial planning businesses after the purchase, the company said in an e-mailed statement. The company’s name will be changed after the purchase, it said. ASK Raymond will hold a media briefing today at 4 pm in Mumbai to announce details.
Raymond James joins Goldman Sachs Group, Morgan Stanley and Merrill Lynch in separating from the Indian partner. Goldman ended a decade-old alliance with billionaire Uday Kotak in March last year and said on 19 September it plans to bring $1 billion (Rs4,355 crore) in investment capital to India over two years.
Morgan Stanley, the world’s second-largest securities firm, last month decided to end of its venture with India’s JM Financial, paying $445 million for the seven-year-old venture’s business of trading stocks on behalf of institutions.
India’s benchmark 30-stock Sensex index of the Bombay Stock Exchange has more than doubled in the past two years. The economy is set to expand 9.2% in the year to 31 March.
Merrill Lynch & Co., the world’s third-largest securities firm, spent $500 million in December 2005 to buy control of DSP Merrill Lynch Ltd, valuing the Indian venture at $1 billion.
Overseas funds invested $8.88 billion in Indian stocks and bonds last year, compared with $9.5 billion in 2005, according to data posted on the Web site of the Securities and Exchange Board of India.
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First Published: Fri, Mar 23 2007. 03 59 PM IST
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