Anil Ambani all set to become the next big deal maker. According to sources, with India Inc making acquisitions worth at least a billion dollar every month, the Reliance ADAG Group is ready for a foray into investment and merchant banking advisory services.
It has come into the notice that the company is planning to float a 100 per cent subsidiary under Reliance Capital, which is a depository participant of the two major depositories in the country and carries out retail broking under the name Reliance Money. In addition, it also funds projects and acts as a cash cow to other ADAG subsidiaries.
Initial signs are that the group is in talks with a couple of foreign investment banks not having a presence in India, sources close to the development said. "The proposed entity would be a fully-owned subsidiary of Reliance Capital. RADAG is scouting for a foreign partner to form a joint venture," pointed out official at Reliance Capital.
At the present juncture, Reliance Capital’s subsidiaries include Reliance Capital Asset Management Ltd, Reliance Capital Trustee Co Ltd, Reliance General Insurance Company Ltd and Reliance Life Insurance Company Ltd.
In theory, the total equity deals struck by India Inc in the last one-year period had crossed $50 billion, of which $46.8 billion was in 287 mergers and acquisitions and $5.1 billion was private equity investments, according to a Grant Thornton study.
Point to be noted here is that investment banking firms, which act as advisors, financiers and brokers to mergers and acquisitions deals, usually earn 5 to 10 per cent in commissions.
Not so long ago, Reliance Capital started its retail broking venture under the name of Reliance Money, which is trying to establish itself as a one-stop shop for customers' financial needs.
Initial signs are that the group is in talks with a couple of foreign investment banks not having a presence in India, sources close to the development said. "The proposed entity would be a fully-owned subsidiary of Reliance Capital. RADAG is scouting for a foreign partner to form a joint venture," pointed out official at Reliance Capital.
At the present juncture, Reliance Capital’s subsidiaries include Reliance Capital Asset Management Ltd, Reliance Capital Trustee Co Ltd, Reliance General Insurance Company Ltd and Reliance Life Insurance Company Ltd.
In theory, the total equity deals struck by India Inc in the last one-year period had crossed $50 billion, of which $46.8 billion was in 287 mergers and acquisitions and $5.1 billion was private equity investments, according to a Grant Thornton study.
Point to be noted here is that investment banking firms, which act as advisors, financiers and brokers to mergers and acquisitions deals, usually earn 5 to 10 per cent in commissions.
Not so long ago, Reliance Capital started its retail broking venture under the name of Reliance Money, which is trying to establish itself as a one-stop shop for customers' financial needs.Source: Hindustan Times.com
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