JM Financial, the listed company owned by Nimesh Kampani, has decided to merge the privately held group company, JM Securities, with itself.
With this restructuring, JM Financial would be the holding company of JM Financial group, which has interests in investment banking, asset management, retail and institutional equity and fixed income broking.
The group plans to expand in other areas such as commodities, private equity and equity financing. The board of JM Financial has appointed M P Chitale & Associates to recommend a fair swap ratio for the merger.
At present, JM Securities holds 51 per cent stake in JM Morgan Stanley Private, which offers retail and fixed income broking services through its two fully owned subsidiaries.
JM Financial holds 49 per cent in JM Morgan Securities, the institutional broking arm, and 10 per cent in the domestic mutual fund business. The rest 90 per cent stake in the asset management business is held by the family.
As part of the restructuring, the group would also transfer 39 per cent stake held by