Mumbai: Brokerage firm Way2Wealth Securities is in talks to buy Antique Stock Broking Ltd for up to $61 million, as both firms seek ways to cope with declining trading volumes, two sources with direct knowledge of the matter told Reuters.
The talks are progressing apace, said the sources, who declined to be named as they were not authorised to speak to the media.
Way2Wealth chief operating officer Ambareesh Baliga and Antique founder director Kirti Doshi declined to comment.
A 17.42% year-to-date fall in the Sensex and uncertain outlook for the global economy has dampened investor sentiment, several market participants said.
A sharp fall in trading volumes has clipped brokerages’ profitability, forcing more consolidation, said one of the sources.
Set up 10 years ago, Antique is a financial services firm, which offers equities, investment banking and research products to retail and institutional clients.
Way2Wealth is a consultancy for equity, derivatives, currency futures, commodity trading, public offers and portfolio management services.
It is the financial services arm of Coffee Day Co, which runs India’s largest cafe chain Cafe Coffee Day.
Global funds including Kohlberg, Kravis Roberts and Co, the private equity arm of Standard Chartered and New Silk Route Partners have invested in the parent company.
Earlier this year, it acquired Mumbai-based brokerage Techno Shares and Broking for about $10 million.