JM, Morgan Stanley venture takes off

The joint venture will operate through four different companies. In the joint venture JM Financial group has a holding interest of 51 per cent in three of these companies with the remaining 49 per cent with Morgan Stanley and in one company it is vice-versa. The new entity will focus on corporate finance, capital raising, mergers amp; acquisitions, privatisation, advisory work and project finance for Indian corporations in both the international and domestic capital markets.

JM Morgan Stanley will also operate in the areas of retail distribution and fixed incomesecurities through two wholly-owned subsidiaries, namely JM Morgan Stanley retail services and JM Morgan Stanley fixed income securities, respectively.

quot;This provides an idle opportunity for two extremely strong companies to come together, domestically and internationally, because both companies believe that as capital flows increase, infrastructure development quickens and the Indian government accelerates its disinvestment programme, the company with a competitive edge in both domestic and international operations will be at the leading edge,quot; said JM Morgan Stanley vice chairman Vikram Gandhi.

Nimesh Kampani, chairman amp; managing director of JM Morgan Stanley, further said that as capital markets become seamless, the financing and investment needs to clients will be better served by financial services firms with domestic and international capabilities. He said that in addition, as corporate India restructures and foreign direct investment is encouraged, the need for advisory services will increase. quot;JMMorgan Stanley is uniquely positioned to provide and facilitate both-capital raising and advisory services,quot; said Kampani.

Chairman of Morgan Stanley Dean Witter Asia John H Wadsworth Jr said on the coming together of the two entities: quot;We have a lot of synergy here between the two firms, one firm who has got a leadership position in the local market and has relationships while another is an international company which is US 40 billion company and has tremendous balance sheets and a wide array of financial products. And, one of the things that Morgan Stanley brings to the table is a wide variety of products and international expertise. So, we have relationships, products, international and domestic experience, business flow, capital base, and all these things put together is going to create vast opportunitiesquot;.

quot;Morgan Stanley will provide products like aircraft financing, securitisation and leasing, fixed income, equity products, advisory, Mamp;A activity, products expertise which JM can leverage for itsclients in India,quot; said Vikram Gandhi.

quot;Generally in Asia, in the mergers and acquisitions Morgan Stanley is doing very well and as financial markets change and the structure of companies change a lot of opportunity for Mamp;A will emerge which would be a primary area of focus,quot; said Wadsworth.