Mumbai: Tata Capital, the financial services and investment arm of Tata Sons, has signed a memorandum of understanding with Mitsubishi UFJ Securities Co (MUS) for investment banking, global equity offerings and other services. The companies have not disclosed financial details of the agreement.
The agreement would reinforce Tata Capital's presence in the Japanese markets and establish a basis of cooperation in a wide range of strategic business areas that include cross-border investment banking, global offering of Indian equities and working towards development of the local bond market and thereby augment the Indo-Japanese Financial corridor, the company said in a release.
The two companies would consider collaborating on possible cross-border investment banking transactions, encompassing activities such as mergers and acquisition advisory, structured finance solutions, including financing through Japanese and other equity and debt capital markets for clients seeking to tap international markets, the release said.
These transactions could either be inbound, i.e. Japanese entities seeking to establish an Indian foothold, or outbound, i.e. Indian entities seeking to invest in Japanese companies or technology for synergistic or business expansion considerations, it added.
Tata Capital and MUS proposes to deploying their combined expertise towards providing a 'one-stop' securities shop for Japanese and other foreign retail and institutional clients seeking to invest in the Indian equities secondary market. The two would also explore other technology related initiatives such as a mobile / online trading platform.
The two companies would also consider collaborating in developing the Indian domestic corporate bond market and would also discuss possibilities for expanding debt investments from Japan and other countries, the release added.
''This MoU is another step towards strengthening our Japanese ties and we are confident that it will benefit both the organisations and the markets and customers we serve. The exchange of ideas and best practices between Tata Capital and MUS will be critical as we go about consolidating our business operating models and service offerings to the benefit of our discerning customers,'' said Praveen P Kadle, managing director of Tata Capital Limited.
''The top priority of our global business operations is to enhance our presence in Asian markets, including India,'' said Yasumasa Gomi, chairman and CEO of MUS.
Tata Capital marks the entry of the Tata Group into a host of new financial services. The company caters to the retail investor and institutional customer in both investment and finance.
Tata Capital also recently signed an agreement with Mizuho Corporate Bank to offer a range of financial services.(See: Tata Capital, Mizuho Corporate Bank in strategic alliance)