The name of the company, which presently is JM Financial ASK Securities Pvt Ltd will be changed after closing of the transaction and subject to necessary regulatory approvals, said a statement. JM Financial Consultants Pvt Ltd is a wholly-owned subsidiary of JM Financial Ltd. Early last year, JM Financial Ltd sold its 49 per cent equity stake in its institutional equity business to Morgan Stanley for 445 million dollars. In October 2007, JM Financial Consultants Pvt Ltd entered into a joint venture with ASK Group by acquiring a 60 per cent stake in ASK Securities. With the proposed acquisition of the remaining stake, JM Financial Consultants Pvt Ltd will now own 100 per cent in the institutional equities business for a total consideration of Rs 139.14 crore.
JM Financial Group Chairman Nimesh Kampani said, ''this acquisition is part of our strategy to provide our clients the entire bouquet of financial services and to continue to strengthen the JM Financial brand as a leading financial services organisation.'' It is an important milestone for our Group and we believe this acquisition will help integrate our capital markets business further, he added. Post the commencement of the joint venture in the institutional equity business, it will continue to focus on providing research-based broking services to institutional clients, both domestic and offshore.