Plans to invest Rs 50 cr for new business
Entering a new market
ADM InvestorServices has taken 26 per cent stake in the firm
MAPE AdmisiSecurities will have memberships in BSE, NSE
Mumbai, July 13
MAPE Advisory Group, a boutique investment bank, on Thursday announced its entry into equity, equity derivatives and commodity brokerage services through a joint venture with London-based ADM Investor Services International Ltd.
ADM Investor Services, which is a full-service investment brokerage firm, has taken 26 per cent stake in the joint venture, `MAPE Admisi Securities'. Paracor India Investments, a London-based private equity firm will have 10 per cent stake in the new company while MAPE Advisory will hold the remaining 64 per cent stake, officials said here.
MAPE Advisory, which was formed about four-and-half years ago by three former DSP-Merrill Lynch executives, Mr M. Ramprasad, Mr Jacob Mathew and Mr Ajay Garg, is among the top 10 investment banks in India in the league table rankings.
MAPE Admisi Securities has filed for application required for licenses from the exchanges and the operations are expected to commence by October this year, after getting the regulatory clearances, said Mr Neeraj Kohli, the Chief Operating Officer of the joint venture. It will have memberships in BSE and NSE for equity and derivatives segments and the commodities trading business will be done through MCX and NCDEX.
Mr Mark Fox-Andrews, Managing Director, ADM Investor Services, said the firm's entry into India marks a departure from its global strategy of entering each market without a local partner. "We are much better placed to enter the market through a local partner," he said, adding that it would have been difficult to enter a market like India, without a domestic partner.
He said ADM Investor Services would look to further increase its investment in the Indian venture in future, depending on its success in garnering business volumes. ADM Investor is a fully-owned subsidiary of $35 billion Archer Daniels Midland Company, a global leader in agricultural processing.
Mr Kohli said MAPE Admisi Securities would be investing Rs 50 crore for the new business over a period of time. Based out of Mumbai, the start-up company will have 30-member team, which includes the research wing. MAPE Admisi Securities will be looking only at institutional business.