The Mangal Keshav Group is head quartered in Mumbai and has 20 branches and 220 franchisees at 70 locations across India. The group was set up in 1939 and is one of the oldest security houses in India. With a growing presence in securities trading, commodities trading, insurance broking and IPO/Mutual fund distribution space, the Mangal Keshav Group is one of the top 20 brokers in the country (by market share) and is a member of the National Stock Exchange, The Bombay Stock Exchange, Multi Commodity Exchange of India Ltd, National Commodity & Derivatives Exchange and Dubai Gold & Commodities Exchange. The Group also has an office in Dubai. With this acquisition, BankMuscat has become the first bank from across the GCC region to take a stake in the Indian Securities Sector.
Announcing the acquisition, AbdulRazak Ali Issa, chief executive of BankMuscat SAOG said: 'We are extremely excited about our partnership with Mangal Keshav. India has been a focal country for the Bank, as is evident from our commitment to the sub-continent over the past eight years. Having a presence in commercial banking in India through our investment in Centurion Bank of Punjab, we were exploring opportunities in other segments of the financial services sector. Mangal Keshav would be our vehicle for exposure to the high growth Indian securities market."
As per Morgan Stanley research, the Indian equity markets are experiencing one of the strongest rallies and the trading volumes are expected to double to USD 3.2 trillion in 2010 from about USD 1.6 trillion currently. Morgan Stanley projects the Indian brokerage business revenues to grow to USD 3.9 billion by 2015. It is in recognition of these trends that several leading international banks -- Citi, BNP, ABN Amro, etc -- have announced their foray in the securities business in India.
"BankMuscat, on its part, has been scouting the Indian financial services environment for the past three years and has reviewed various investment opportunities. Mangal Keshav with its 70-year track record and strong retail presence fitted well with our objectives. In line with BankMuscat's overall investment philosophy, the Bank views this acquisition as a long-term strategic partnership between the two organizations," Mr AbdulRazak added.
Commenting on the partnership, Paresh Bhagat, chairman and managing director of the Mangal Keshav Group said: "We have been speaking to other suitors including private equity funds for the last two years. What attracted us to BankMuscat was its investment philosophy of long-term strategic partnership. BankMuscat is keen to partner Mangal Keshav in its growth and the Bank's investment would jump-start the major expansion plans, which Mangal Keshav has drawn with respect to opening of new branches, getting more channel partners and also offering an online trading platform to its present and prospective clients. Mangal Keshav would also benefit from BankMuscat's investment banking and asset management capabilities and its widespread presence across the Gulf region, which should give a boost to the NRI and Institutional business of Mangal Keshav."
The financial due diligence on behalf of BankMuscat was conducted by PriceWaterhouse Coopers, India, while legal due diligence was done by Amarchand Mangaldas, one of the leading Indian legal firms. The transaction is expected to be completed during the first quarter of 2007.
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BankMuscat acquires 43% in Indian security house
- Oman: Wednesday, January 17 - 2007 at 15:10
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BankMuscat SAOG, one of the leading banks in the Gulf Co-operative Council (GCC) region, has entered into an agreement with the Mangal Keshav Group to acquire a 43% stake in the holding company of the Mangal Keshav Group.
L-R AbdulRazak Ali Issa, chief executive of BankMuscat SAOG andParesh Bhagat, chairman and managing director of the Mangal Keshav Group.
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Posted by Janeta Novakovic, Assistant News EditorWednesday, January 17 - 2007 at 15:10 UAE local time (GMT+4)
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This article was updated on Tue Apr 03 2007.
Notes and Media Contacts »
About Mangal Keshav Securities Ltd:
Mangal Keshav Securities Ltd, is one of the pioneer members of Bombay Stock Exchange Limited (BSE) since 1939 and a member of National Stock Exchange of India Limited (NSE) since 1995 and also a participant of both the -depositories, viz. National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL). MKSL, through its group companies, is a member broker for National Commodity & Derivatives Exchange Limited {NCDEX) and Multi Commodity Exchange of India Limited (MCX) offering a platform for trading in commodities. The Group has presence in trading in the international commodities trading markets through its subsidiary, Mangal Keshav DMCC, which is a broker member of Dubai Gold and Commodities Exchange {DGCX). The Group is also engaged in distribution. Mutual Fund and Insurance products, thereby offering a bouquet of financial products across risk profiles.
The Mangal Keshav Group has a representative office in Dubai to cater to HNI and Institutional clients. The Group has plans to set up more offices in the Gulf.
About BankMuscat:
With assets worth over USD 6.2 billion, BankMuscat (SAOG) is the largest Bank in Oman today with a strong presence in Corporate Banking, Consumer Banking, Investment Banking, Treasury, Private Banking, Project Finance and Asset Management. The Bank has a network of 97 branches and 200 ATMs in Oman and a representative office in Dubai (UAE). BankMuscat also has a strategic stake in Centurion Bank of Punjab, the 7th largest private sector bank in India, and has a 49% stake in BankMuscat International (BMI), an independent banking entity in Bahrain that is focused on becoming a truly GCC regional bank.
BankMuscat made an impressive maiden entry into Global League Tables (mandates won) for Financial Advisors published by The Infrastructure Journal magazine late last year. The Bank was ranked 11th in the Global Financial Advisors list (overall 3rd in the Africa and Middle East region) in terms of mandates won. The Bank was also ranked 2nd globally in the Power Sector. The rankings were based on the Bank's having won four transactions amounting to USD 1.7 billon in the power, petrochemicals and waste sector. This is the probably the first time that a bank from the Middle East and Africa has been ranked this high in the global financial advisory league tables.
The Bank also recently became the recipient of the single largest investment of the International Financial Corporation (IFC) in the MENA region, with IFC extending a USD 100 million subordinated loan to the Bank to help the Bank enhance its capital adequacy and lend further momentum to its housing loan operations in the Sultanate. The IFC has also signed a technical agreement with the Bank to help it grow the SME finance segment in the Sultanate.
For further information, please contact:
Nilesh Gavankar,
Head -Corporate Finance & Advisory
Ph: +968 24768209
Sukanti Ghosh,
Head - Corporate Communications
Ph: +968 24768590
Mangal Keshav Securities Ltd, is one of the pioneer members of Bombay Stock Exchange Limited (BSE) since 1939 and a member of National Stock Exchange of India Limited (NSE) since 1995 and also a participant of both the -depositories, viz. National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL). MKSL, through its group companies, is a member broker for National Commodity & Derivatives Exchange Limited {NCDEX) and Multi Commodity Exchange of India Limited (MCX) offering a platform for trading in commodities. The Group has presence in trading in the international commodities trading markets through its subsidiary, Mangal Keshav DMCC, which is a broker member of Dubai Gold and Commodities Exchange {DGCX). The Group is also engaged in distribution. Mutual Fund and Insurance products, thereby offering a bouquet of financial products across risk profiles.
The Mangal Keshav Group has a representative office in Dubai to cater to HNI and Institutional clients. The Group has plans to set up more offices in the Gulf.
About BankMuscat:
With assets worth over USD 6.2 billion, BankMuscat (SAOG) is the largest Bank in Oman today with a strong presence in Corporate Banking, Consumer Banking, Investment Banking, Treasury, Private Banking, Project Finance and Asset Management. The Bank has a network of 97 branches and 200 ATMs in Oman and a representative office in Dubai (UAE). BankMuscat also has a strategic stake in Centurion Bank of Punjab, the 7th largest private sector bank in India, and has a 49% stake in BankMuscat International (BMI), an independent banking entity in Bahrain that is focused on becoming a truly GCC regional bank.
BankMuscat made an impressive maiden entry into Global League Tables (mandates won) for Financial Advisors published by The Infrastructure Journal magazine late last year. The Bank was ranked 11th in the Global Financial Advisors list (overall 3rd in the Africa and Middle East region) in terms of mandates won. The Bank was also ranked 2nd globally in the Power Sector. The rankings were based on the Bank's having won four transactions amounting to USD 1.7 billon in the power, petrochemicals and waste sector. This is the probably the first time that a bank from the Middle East and Africa has been ranked this high in the global financial advisory league tables.
The Bank also recently became the recipient of the single largest investment of the International Financial Corporation (IFC) in the MENA region, with IFC extending a USD 100 million subordinated loan to the Bank to help the Bank enhance its capital adequacy and lend further momentum to its housing loan operations in the Sultanate. The IFC has also signed a technical agreement with the Bank to help it grow the SME finance segment in the Sultanate.
For further information, please contact:
Nilesh Gavankar,
Head -Corporate Finance & Advisory
Ph: +968 24768209
Sukanti Ghosh,
Head - Corporate Communications
Ph: +968 24768590
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