I-Sec betting big on M&As, to create portfolio of target firms

ICICI Securities (I-Sec), the investment banking arm of ICICI Bank, is drawing up a blue-print of possible acquisition targets by the Indian Inc.

At the second stage, I-Sec plans to approach cash rich corporates which are looking for acquisitions in various sectors with the list of target companies.

"We don't want to wait for the mandates. We want to create a mandate for ourselves. Once the acquirer is convinced about the merit of the deal, we are ready to offer total solution including the funding pattern and arrangement of funds," said Subrata Mukherji, managing director and chief executive officer of I-Sec.

Mukherji is upbeat about the merger & acquisition (M&A) scene as the manufacturing sector is looking up.

"Till recently, the growth was hinging on infotech and business process outsourcing. Now everybody can see that the manufacturing sector too is taking off. Companies have started talking about expansion and acquisitions. We are combing each sector for possible targets," Mukherji said.

I-Sec also plans to help Indian companies in their endeavour to become globally competitive. This could be by way of capital restructuring and fund raisings in the Indian markets or through industry reorganisation and consolidation.

"We will leverage the ICICI Bank brand which has a global presence now. ICICI Bank has consciously developed the strategy of following their clients (into the international markets) and I-Sec looks forward to similar strategy into international markets. We have already advised few Indian corporates for international acquisitions and we expect to concentrate on this business opportunity," he said.

Mukherji wants to focus on I-Sec's global presence. "The first step in this direction will be to enable our US arm to cater to the accredited investors in the US in addition to qualified investment bodies (QIBs) being catered to currently. We are enabled for ADR trading on the NYSE. We are considering the opportunity of joining the London and Singapore exchanges too," he said.