First Global buys Way2Wealth

First Global, the leading multinational securities house, has acquired the Bangalore-based Way2Wealth Securities (W2W), the multi-product financial services company, for an undisclosed sum. W2W is into equity brokerage, mutual fund distribution, insurance sales and wealth management.

Shankar Sharma, director of First Global group, however, said the company's valuations were close to that of IndiaBulls. As on Thursday's closing price of Rs 184.05 on the Bombay Stock Exchange, IndiaBull's market capitalisation stood at Rs 2,475 crore.

In a statement issued on Thursday, Sharma said, "W2W has built an enviable pan-India network. First Global's considerable and well-recognised skills in securities research, trading, corporate finance, institutional broking and wealth/PMS management will be utilised to increase the throughput through W2W's phenomenal network, and will create a financial services powerhouse."

"We are aiming to be a top-tier player in the financial services space, and with this deal, in one stroke, we have made our entry into the bulge bracket," Sharma said.

Promoted by V G Siddhartha, Way2Wealth has 55 branches, over 500 employees and about 75,000 clients.

Siddhartha said, "The deal with First Global is a big step forward for W2W, as it builds on our strength in nationwide distribution, with First Global's expertise in financial markets. We are sure that it will add value to all constituents."

Siddhartha added that with the completion of this transaction, it will allow him to concentrate on his core business.

First Global is the India's multinational Securities house, with memberships on the prestigious London Stock Exchange and the Nasdaq. It has offices in New York and London, in addition to its offices in India.