Two mega deals brewing on Dalal St promise to set mind-boggling benchmarks on how much a broking house can possibly pay to attract equity research and investment banking talent in India.
Japanese financial services powerhouse Nomura Holdings is close to acquiring Enam Financial Consultants, one of India’s leading institutional broking and investment banking firms with revenues of around Rs 1,500 crore.
The AsiaMoney magazine had ranked Enam the “Best Domestic Equity House – 2007” by AsiaMoney, making it two accolades in two years.
Nomura, with annual revenues nudging $4 billion and a market cap ten times that, has finalised acquisition at slightly over $1 billion for the institutional sales and investment banking business of Enam, sources said.
That would send the valuation of each investment banker/analyst in Enam into a new orbit that runs into high-double-digit crores.
The deal promises to put to shade what India Infoline paid as sign-on bonus to four CLSA Asia Pacific honchos – Rs 44 crore.
“We do not comment on market speculation,” said an Enam spokesperson.
Another US bank, Lehman Brothers, is said to be buying out the institutional equity business of Brics Securities for about Rs 200 crore.
On Tuesday, Lehman is said to have interviewed some analysts on the institutional side of the Brics business.
Brics will most probably retain the retail and private client businesses.
Source : DNA India