Alliance with the US firm comes within two months of signing a similar deal with UK’s Collins Stewart Hawkpoint.
Within two months of inking an alliance with UK’s Collins Stewart Hawkpoint Plc, ICICI Securities, the investment banking subsidiary of ICICI Bank, has signed another, with US-based Oppenheimer, to cooperate on business opportunities in both the countries.
Oppenheimer & Co is a principal subsidiary of Oppenheimer Holdings, which provides a full range of wealth management, securities brokerage and investment banking services to high net worth individuals, families and corporate executives.
The alliance is to cover a range of securities’ activities. These include equity and debt capital market services, advisory services, private equity transactions and wealth management. The opportunities to be explored jointly would be introduction of Indian companies into the US, the US distribution of Indian offerings and placements, cross-border advisory, and offering equity and wealth management products in India and the US to the private clients of Oppenheimer and ICICI Securities.
Anup Bagchi, managing director and CEO, ICICI Securities, said, “We believe this partnership will intensify our business in the United States and create the synergy to grow our business in India.”
ICICI Securities, the broking arm of India’s largest private sector bank, is focusing on expanding its institutional broking business, at a time when competition in this space has intensified, with the entry of more players. The decision to focus here also comes when stiff competition and high usage of electronic facilities like direct market access have forced brokerages to reduce commission.
“India is a dynamic and growing investment banking market. This alliance will provide us with a wide range of opportunities in corporate advisory and plays to the strength of our existing business activities,” said Steve Bernstein, CEO, Oppenheimer Investments Asia.
Early last month, ICICI Securities and the UK’s Collins Stewart Hawkpoint had announced a broad alliance to cooperate in growing their business franchises. The alliance covered investment banking and institutional sales activities, including corporate advisory services, research-led agency securities trading and capital markets advice.
In 2010-11 (April-March), ICICI Securities’ net profit narrowed to Rs 113 crore from Rs 123 crore a year before, due to shrinking brokerage income in volatile market conditions. The firm operates the largest online retail broking business, under the brand name of ICICI Direct. It has so far been growing its retail broking and distribution and corporate finance businesses.
