Ambit Corporate Finance, a leading investment bank, today announced a joint venture with Centurion Bank of Punjab (CBoP) and TV 18 group to pursue stock broking business.Christened Ambit Web 18, the new venture will start offering offline as well as online stock trading platform within four months, subject to necessary clearances.In a two-way structure, Ambit's securities business arm, Ambit Capital, will have 51% stake in the new company while Web 18, a part of the TV 18 group, will control 39% stake. Centurion Bank of Punjab will have the remaining 10% stake. Both Centurion Bank of Punjab and Web 18 will have 20% and 29%, shareholding, respectively, in Ambit Capital in which Ambit Corporate Finance has a 51% stake. The five-member board of the new company will be headed by Rana Talwar. Ambit and TV 18 will have two representatives each on the board.The joint venture, which is the first-of-its kind in the retail broking field with three players having differnt expertise are coming together, will also offer distribution of third-party products and portfolio management services.Talking to Business Standard, Ambit Corporate Finance Partner & CEO Ashok Wadhwa said the new company was aimed at making good use of Ambit Capital's strong relationship with high networth and institutional investors in the offline and online retail space. "While Web 18 will bring its on-line expertise on the table, the joint venture will have access to Centurion Bank of Punjab's retail base," he pointed out. The bank has over three million customers and 249 branches.Considering the fact that the penetration of stock broking in Indian households was less than 3%, Wadhwa said the scope for rapid growth in the space would continue for at least the next five years.Leading brokerages have been witnessing over 100% growth in the last few years.
