Daiwa Securities Group: Japan’s Daiwa to pick up 15% stake in Ambit

Mumbai: Japanese financial services firm Daiwa Securities Group Inc is picking up a little over 15% stake in Ashok Wadhwa-led Ambit Pvt Ltd, which has business interests in investment banking, equities, asset and wealth management and lending.

The investment builds upon the existing association between the two groups. Financial terms of the deal were not disclosed. The deal is subject to the completion of customary conditions precedent and regulatory approvals.

Part of the Daiwa investment will go towards providing liquidity to some of the employee shareholders and other minority shareholders of Ambit. After the completion of the Daiwa deal, Ambit also plans to buy out the 14% stake held by Qatari investment bank Qinvest, through its internal accruals. The Qatari firm, which invested in Ambit in 2010 and held around 29% stake, has been slowly bringing down its ownership in Ambit.

The partnership with Daiwa will provide Ambit access to Daiwa’s global network, which is one of the largest regional broking houses in the Asia Pacific region and be able to further take its products and services to global markets. With its institutional broking capabilities, Ambit will be able to boost its efforts to bring the Indian public equities opportunity to global clients.

“Having built a strong and mutually beneficial foundation with Daiwa over the years, I am confident that this continued relationship will be fruitful, not only to our clients, but also to both firms. We see India’s growth story blossoming and with Daiwa on board, investment avenues for clients, further open up,” said Ashok Wadhwa, Group CEO, Ambit.

Seiji Nakata, President and CEO, Daiwa added, “We see India as a strategically important country, which is expected to grow in the long run. Ambit group has dealt with securities business and NBFC business, which enables them to provide the most proper solutions to various client segments.”