JM Fin scouts for global, local allies

The Nimesh Kampani-owned JM Financial Services is holding talks with global banks for a tie-up to boost its investment banking business, even as it announced a strategic deal with institutional brokerage house ASK Securities.

A global alliance will help Kampani bag more deals from Indian companies pursuing overseas acquisitions and fund raising to expand their footprint, particularly in North America and Australia.

While a tie-up with a domestic firm will help it rebuild the business lost to erstwhile partner, Morgan Stanley, as part of a separation agreement.

JM Financial Services has in store enough IPOs and M&As to make its financial year busy. About 70 per cent of the business for investment banking will come from the capital market and 30-35 per cent from M&As, said Kampani.

The Mumbai-based JM Financial has earmarked $50 million for a Special Situation Fund, which will invest in high-growth listed companies through preferential allotment. The fund will be a proprietary investment of the group.

The company recently invested about Rs 22 crore in the Mumbai-based Ankur Drugs and Pharmaceuticals through the fund.

The Special Situations Fund will invest only in listed companies, but will not invest through the secondary market. The Special Situation Fund is being run by Basant Agarwal, who is on the look out for more investments in listed space.

JM Financial, he said, is also planning to launch its $400-500 million second private equity fund. The first private equity fund is worth $200 million has invested in Genesis Colors, International Tractors and the Sona group.

Kampani said the PE fund was in the final stage of talks to make more investments. We hope to close at least two deals by September, he said.

About the real-estate sector, Kampani said the company's $300 million real estate fund was looking for more investments. In retail broking, the company will open more branches and may increase the number to 30 from the existing 16 branches, he said.