Ambit forms JV with Centurion Bank, TV-18

Ambit Corporate Finance, a leading investment bank, has announced a joint venture (JV) with Centurion Bank of Punjab and the TV-18 group to pursue stock broking business.

Christened Ambit Web 18, the JV will offer off-line and on-line stock trading platform for four months, subject to necessary regulatory clearances.

In the two-way structured deal, Ambit's securities business arm, Ambit Capital, will hold 51 per cent stake in the new entity, while Web-18, a TV-18 concern, will own 39 per cent stake. The remaining 10 per cent stake will go to Centurion Bank of Punjab.

Centurion Bank of Punjab and Web 18 will have 20 per cent and 29 per cent shareholding, respectively, in Ambit Capital in which Ambit Corporate Finance has 51 per cent stake.

The five-member board of the new company will be headed by Rana Talwar, chairman of Centurion Bank of Punjab with Ambit and TV-18 having two representatives each.

The JV, which is first of its kind in retail broking field with players having different expertise coming together, will also distribute third-party products and portfolio management services.

Ashok Wadhwa, CEO, Ambit Corporate Finance told the Business Standard the new company was banking on the Ambit Capital's strong relationship with high networth and institutional investors in the off-line and on-line 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 said . The bank has over 3 million customers and 249 branches.

Currently, penetration of stock broking in the Indian household is less than 3 per cent. Regarding this, Wadhwa said the scope for rapid growth in this space would continue for at least next five years.