ASK calls off JV with Raymond James

The ASK-Raymond James JV is no more. Brothers Asit and Sameer Koticha-owned ASK Investment & Financial Consultants has bought out the 50% strategic stake from Raymond James Financial, Inc. for an undisclosed amount. Raymond James will not have any presence in India post-deal. The Kotichas have kept their options open on having financial partner or strategic investor in the future.

Subsequent to the buyback, the 50% shares will remain with the two brothers-Asit and Sameer. In the new holding pattern, the two brothers will hold 75% shares and another 25% will stay with Bharat Shah, who will be heading the ASK Investment Managers Private Limited. The ASK Group also plans to enter mutual fund, real estate and NBFC businesses.

Read the Business Standard article.

Raymond James to buy out Indian partner ASK Investment Financial Consultants from ASK-Raymond James JV

US brokerage Raymond James Financial, Inc. may buy out the stake of its Indian partner, ASK Investment Financial Consultants. Competition in India’s investment banking market has heated up dramatically, and foreign securities houses are now scrapping joint ventures to chase deals by themselves.

Last month, Morgan Stanley said it would spend a net $425 mn to split from its Indian partner, JM Financial. Merrill Lynch agreed to pay $500 mn to lift its stake in its DSP Merrill Lynch joint venture to 90% from 40% in December 2005. Goldman Sachs announced plans last year to set up its own Indian investment banking and securities business after selling its stakes in two joint ventures to partner Kotak Mahindra Bank.

Read The Economic Times article.