Kampani to buy out ASK from JV

Nimesh Kampani-promoted JM Financial will increase its equity stake in JM Financial ASK Securities from the current 60% to 100%, subject to necessary regulatory approvals. The total consideration JM Financial will pay for the entire holding is Rs 139.14 crore.

JM Financial had, in October 2007, entered into a joint venture with the ASK group by acquiring 60% stake in ASK Securities. The name of the joint venture company will be changed after raising the stake.

Last year, JM Financial sold its 49% equity stake in its institutional equity business to Morgan Stanley for aprroximately Rs 1,767 crore ($ 445 million ).

Nimesh Kampani, chairman, JM Financial Group, said: "This acquisition is part of our strategy to provide clients the entire bouquet of financial services, and to continue to strengthen the JM Financial brand as a leading financial services organisation."

Asit Koticha, chairman, ASK Group, said: "We have recently applied to Sebi for licence to start an asset management company. We have decided to focus on portfolio management and wealth advisory businesses that cater to ultra high net worth individual clients."

The institutional broking business of ASK is a legacy of its former joint venture with its foreign partner and was set up in the mid-nineties.