JM Financial to acquire 60 per cent stake in ASK Securities
Mumbai: JM Financial Services is acquiring a 60 per cent stake in domestic institutional brokerage & equity research firm ASK Securities for Rs58.14 crore.

JM Financial Services split from its seven-year partner Morgan Stanley in February this and sold two key businesses viz., institutional broking & sales & equity research, to the US bank for $425 million (Rs1,912 crore).

Commenting on the joint venture, Nimesh Kampani, chairman, JM Financial Group said, "This joint venture is yet another step towards our long-term growth strategy of building a financial institution with a global reach."

The deal came about on the same day that JM Financial's former partner, Morgan Stanley, received government clearance to invest Rs1,894 crore to conduct securities sales, trading and broking, merchant banking and corporate advisory services and other NBFC activities.

ASK Group, which has three businesses - institutional broking & equity research (ASK Securities), portfolio management services (ASK Investment Managers Ltd) and financial planning (ASK Wealth Advisors Pvt Ltd), separated from its foreign partner Raymond James by acquiring the 50 per cent held by the company in March.

The transaction is expected to close by the second quarter of Financial Year 2007-08, subject to necessary regulatory approvals.
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Indiabulls Real Estate raises $400 mn through GDRs
Mumbai: Delhi-based property developer, Indiabulls Real Estate (IREL), has raised $400 million selling global depository receipts (GDRs), in just over three-months after it was separated from parent Indiabulls Financial Services.

The GDRs were priced at $10.32 apiece (nearly Rs412), a discount of Rs41 a share compared to the prevailing share price of Rs452.95 on the Bombay Stock Exchange today.

The money raised by IREL includes $40 million from an over-allotment option as demand outstripped supply.

In May, group company Indiabulls Financial Services raised $275 million through a GDR issue.
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Oil India to float maiden issue by October
New Delhi: Oil India (OIL) is getting ready to float its maiden public share issue by mid-October.

The company is presently in the process of appointing lead managers for the issue.

However, the company has received no clear directive on how much stake will be offered to the public.

Initially the plan was to expand the company's capital base by 10 per cent and offer 10 per cent of the expanded capital to the public and 1 per cent to the employees.

The petroleum ministry is now considering piggybacking on the company's share sale by divesting 10 per cent of its own stake as well.

Petroleum Minister Murli Deora had recently said that the ministry was in talks with the Left parties to reach a final decision on the divestment.

Officials said it almost certain that 10 per cent stake will be divested though there has been no clear directive yet from the ministry about expanding the capital base by 10 per cent.
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