Japanese financial services major Nomura will buy 35% in Enam Financial Consultants for Rs 1,400 crore. The deal is expected to be announced as early as Wednesday, a sources close to the development said. In the process Nomura has pipped a host of other global financial sector majors like JP Morgan, Barclays and Credit Suisse to the post. The deal is being announced on the eve of the foundation day of Enam, sources said.
Post the deal, Enam would be a joint venture between the Japanese major, and Vallabh Bhansali and the other promoters of the Indian firm. Bhansali is expected to retain his control over the financial powerhouse he built from scratch. The deal values Enam at about Rs 4,200 crore (a little over $1 billion).
Under the terms of the deal initially Nomura's will be involved in investment banking business of Enam. And then slowly will also involve itself in other businesses like institutional broking and research, equity distribution and merchant banking, sources said. However, Enam will continue to have full control of its portfolio management services businesses.
At present unlisted Enam is a major name in India's equity and merchant banking space. In the financial sector, other than Bhansali financial acumen, the firm is also highly respected for its IPO distribution network.
Of late leading Indian broking firms have been going through changes in holding structure. Among the major one, in February JM Financial broke its nearly decade-old association with Morgan Stanley. Earlier Kotak Mahindra Bank severed its links with Goldman Sachs, while US financial major Merrill Lynch raised its stake in DSP Merrill Lynch to 90% from being an equal partner in the venture earlier.
Source : Times of India