Reliance Capital Blog

Reliance Capital, India's Berkshire Hathaway

Thursday, December 10, 2009

RelCap to buy majority stake in Quant Capital

Reliance Capital Ltd, the financial services arm of Anil Dhirubhai Ambani Group, will acquire a controlling stake in the Mumbai based equity research and broking firm Quant Capital Group.

"Reliance Equity International, a wholly owned subsidiary of Reliance Capital, and Quant Capital will integrate the businesses to achieve benefits of synergies, costs and increased scale of operations." a company statement said. Deal is subject to regulatory approvals, it said. Financial details were not
disclosed.

Sandeep Tandon, MD & CEO of Quant Capital, said, "It would be a win-win situation for both of us. We would use the infused money to expand and strengthen our operations in wealth management, currencies and commodities." The existing management team at Quant Capital will continue to be responsible for its operations, he said.

Quant, which employs close to 150 people, focuses primarily on complex financial equity products and is among the top 5 broking firms in institutional derivatives segment with daily turnover of more than Rs 1,000 crore.

Besides traditional fundamental research, Quant provides quantitative and behavioural research to forecast trends for global currencies, commodities and equities.Market watchers believe this deal would enable Reliance Capital to strengthen its client base.

"Quant is a professionally driven unlisted company and was looking to infuse capital since last one year in order to grow its business further. It specialises in derivatives segment and has good FII clientele which may be the reason for Reliance Capital to buy stake in Quant," they said.Quant was incorporated in December 2007 and started broking operations in May 2008.

There were reports in August 2008 on Quant reaching final stages for raising $100 million from strategic investors.