Japan's Daiwa to acquire a minority stake in Mumbai-based Ambit

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Japanese investment bank Daiwa Securities has reached an agreement to acquire a minority stake in Ambit Private, a Mumbai-based financial services company, for an undisclosed sum.

Daiwa will appoint a representative to serve on Ambit's board of directors and recognise it as an equity method affiliate, the two companies said in a statement on May 8.

The agreement was signed on April 26. The transaction is subject to customary conditions precedent and regulatory approvals and will move forward according to plan once these requirements are met, the statement said.

Ambit will have the opportunity to tap into Daiwa's extensive global network. This will enable Ambit to expand its reach and bring its products and services to global markets. With Ambit's institutional broking expertise, the company can further promote India's public equities opportunities to clients worldwide, the release said.

In the initial phase, both companies will work together to serve global clients in the areas of institutional equities and equity capital markets (including IPOs, public fundraising, and other related businesses), leveraging the Indo-Japan corridor.

“Pan-Asia ex Japan is a key region where we have the biggest business operations other than Japan. Especially, we see India as a strategically important country, which is expected to grow in the long run.” Daiwa president and CEO Seiji Nakata said.

Ambit Group has dealt with securities businesses and NBFC businesses, which enables them to provide the most proper solution to various client segments, he said. "I’m pleased that Daiwa will be able to offer more investment opportunities to our clients with Ambit Group, thanks to this renewed business partnership," Nakata said.