JM:MS Splie

 

JM Financial Ltd has informed BSE that the Board of Directors of the Company at its meeting held on February 22, 2007, has approved in principal decision to separate from Morgan Stanley in the joint venture in Investment Banking and Securities Broking Business, subject to necessary regulatory and other approvals as may be required and signing of definitive agreements.

The joint venture inked in 1997 and formalized in 1999 established a pre-eminent Investment Bank, Equity Broking, Research, wealth management and advisory and securities distribution operations in India during the decade long relationship.

JM Financial Group, established in 1973 and a pre-eminent Indian Investment Bank by itself prior to the joint venture with Morgan Stanley, will acquire 49% holding of Morgan Stanley in JM Morgan Stanley Pvt Ltd (JMMS), the Investment Banking Company together with its subsidiaries engaged in fixed income, equity broking, wealth management, advisory and distribution businesses of the joint venture at around book value for USD 20 mn equivalent to Rs 88.5 cr at current exchange rate. JM Financial will simultaneously sell to Morgan Stanley, their 49% holding in JM Morgan Stanley Securities Pvt Ltd (JMSPL), the Institutional equity broking Company for USD 445 mn equivalent to approx Rs 1970 Cr at current exchange rate.

The transaction is expected to close by first quarter of Financial Year 2007-08. JM financial group and Morgan Stanley have agreed that all existing mandated transactions will be executed by the current joint venture and the partners in the manner currently in practice in a seamless manner keeping the clients' interest as utmost priority.

JM Financial Group has recently ramped up their asset management business with the addition of a private equity fund and a real estate fund to the existing mutual fund business. The group has also forayed into securitized assets and special situations investing activities. Besides these, the group runs a Non Banking Financial Company and a Commodities research and broking business.

Commenting on this transaction, Nimesh Kampani, Chairman of JM Financial Group said, "Rapidly growing Indian economy is opening up new vistas for growth in the Financial Services business. Time is ripe for Indian businesses of JM Financial's stature to build Indian Institution of global standards thirds and reach. JM Financial is focused on expanding their area of operations and grow all businesses in a synergistic rapid pace. The separation will allow the JM Financial group to capture these opportunities on the foundation of their Firm values of long term business focus backed by strong relationship with the clients. JM Financial group will immediately build up their own institutional equity broking and research business. The group already has the relationships and expertise for these businesses and will enhance the infrastructure needed to add these to their current portfolio."

Udwadia & Udeshi as well as Amarchand Mangaldas and Suresh A Shroff & Co. acted as legal advisors to JM Financial for this transaction. PP Shah & Co. acted as tax advisors to JM Financial for this transaction.

JM Financial is an integrated diversified financial services group offering a broad range of financial products and services including investment banking, securities, wealth management, investment management and equity financing to its Indian and international clients.

B School Blog Hunt Competition

might be something that might interest the bloggers out there....

 

 

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India's 1st B School Blog Hunt Competition


Student/Alumni of Any Business school worldwide is eligible

just go through the following links for further information-

http://inferno.aimk.org/Main/BlogHunt


Submit your blog at -

http://inferno.aimk.org/blogofthemonth/index.php


Organised by Army Institute of Management co Sponsered by Pagalguy.com

www.inferno.aimk.org/
www.pagalguy.com

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Hi. Helpdesk. What can we do for you?

http://www.youtube.com/watch?v=eRjVeRbhtRU

Interesting video... on the plight of helpdesk.. since time immemorial ;)

Indibloggies Award

... are on here

Lets vote for the GreatBongs and the India Uncuts or whoever you guys support.

Come to think of it, if we start becoming an active group, we can take IIMBlog to this competition sometime!

Unmaad Quiz referred on Dibyo's blog

Dibyo refers to the quiz at Unmaad in his blog here

I have moved to Mumbai

Its been a few weeks. Have joined Diamond Cluster in Mumbai. I am reachable on 9967028243

 

Cheers,

Dingi

 

 

--
Regards

Amit Das
http://pilots-and-zealots.blogspot.com
amitdas@gmail.com

which job are you in?

hey people,

 have just created a small poll on the yahoo groups site.

 

 the link is: http://groups.yahoo.com/group/iimb2003/surveys?id=2143691

 

 this will not expire, so long as yahoo groups keeps hosting free groups :-). will be setting up a reminder every month or six months, so that you can just log in and update your status.

 

 you'll need to link a yahoo id with your email id to do this. so for this, visit http://groups.yahoo.com and sign up for an account.

 

Ma'm.. is this true?

Interesting clip!
What is the women community@IIM saying about this?? If I remember right, IIMB Class of 2003 community on Orkut has a related Women at IIM kinda community! :)

Managed Assets to grow to $ 1.3 trillion in India

mebbe some people would like to read this article.

.

Boston Consulting Group says that fund managers must take forceful initiatives to improve the integrity of their businesses if they hope to remain competitive
Global asset managers, despite overall positive trends in the value of the funds they manage, must take forceful initiatives to improve the integrity of their businesses if they hope to remain competitive as industry dynamics shift in step with demographic patterns, according to a new report by the Boston Consulting Group (BCG). The new report 'Playing the Long Game: Global Asset Management 2006' examines the current state of the industry, offers a detailed analysis of the market for retirement assets, and outlines specific actions that asset managers can take if they seek both to raise profitability and achieve a leadership position in the industry. The global management-consulting firm estimates the current managed assets in India to be about US$170bn and predicts this to grow exponentially to about US$1.3 trillion by 2015. This includes the major elements - domestic mutual funds, international funds invested in India, private banking including PMS, unit linked insurance and pension funds. BCG believes this opportunity will grow exponentially. In fact, managed assets excluding pensions are expected to grow by about 10 times over the next decade, says Alpesh Shah "The potential of the Indian market is attracting many new entrants and this is likely to continue over the next five years," he said. In order for the Indian asset managers to do well, BCG has identified the five commandments for success, which are: 1. to reach out to the full India potential by going beyond the top eight cities 2. development of the international opportunity 3. new product innovation to fill out the key category gaps and address adjacent spaces 4. to optimise distribution including developing alternate channels 5. to build a global brand "India is a very attractive opportunity and ultimately," says Shah. "The players that get their act together on these five commandments in addition to the table stakes of solid investment performance will be the biggest winners." According to the BCG report, which is based on a study of 28 national markets, the value of professionally managed assets - those for which a management fee is paid - grew by around 15% globally to US$49.1 trillion in 2005, with capital inflows driven largely by growth in Europe and Asia. Assets Under Management (AUM) in both Europe and the Asia-Pacific region grew by more than 20% in nominal terms, compared with 9% in the United States. The US market nonetheless remains the largest in the world, with more than US$22 trillion in AUM. BCG says that asset managers, in order to improve the integrity of their overall businesses, must optimize distribution networks, enhance segment and asset-class expertise, explore the development of innovative products, foster investment-manager autonomy, enhance scale, and continue to hammer away at cutting costs. A highly disciplined approach to distribution will be particularly critical because the bulk of power and influence in the industry is continuing to shift away from manufacturers toward distributors and intermediaries that control customer relationships, according to the consulting firm. In order to improve competitiveness specifically in the market for retirement assets, players need to redefine their product portfolios, broaden advisory capacity, invest more in the customer experience, sharpen risk-management capabilities, and vigilantly keep up with regulatory shifts, says the report. The report notes that traditional core businesses of actively managed equity, bond, and money market funds are coming under increasing pressure, says the report. Although revenue margins have showed relative stability since 2004 - at around 45 to 50 basis points for equity funds and 15 to 20 basis points for bond and money market funds - asset growth across the core is expected to stay in the middle single digits over the next few years, it adds. By contrast, asset growth should be stronger in non-core offerings. These include commoditised products such as index funds and exchange-traded funds, as well as alternative investments such as hedge funds and private equity. Hedge funds assets, which generate revenues in the 150-to-200 basis-point range, already exceed US$1 trillion and are expected to grow by 15% annually as declining minimum-investment requirements bring hedge funds more into the asset management mainstream, the report says.