Mega broking deals in offing, Enam and Brics to be bought by global giants

An expanding equity and debt market, booming M&A space, increasing investor participation has attracted the fancy of top global broking houses by paying heftily to get quality equity research and investment banking talent in India.

After E*Trade – IL&FS Investsmart, BNP Paribas –Geojit Securities, Stanchart – UTI Securities, Citigroup Venture Capital – Sharekhan, the deal buzz is that Enam Financial Consultants and Brics Securities could be lapped up by Japanese investment bank Nomura Holdings and US based Lehman Brothers respectively.

Enam, an Rs.15 billion turnover institutional broking, portfolio management and investment banking firms with revenues of around Rs 1,500 crore has received interests from JP Morgan, Barclays, Swiss Credit Suisse and Nomura.  Reports say that the latter is the frontrunner and may buy Enam for $1billion.

Brics Securities, a 4 year old broking firm formed by acquisition of Birla Sun Life Securities is reported to be selling its institutional business to Lehman Brothers for about Rs.200 crore. Brics will retain the retail and private client businesses. Earlier, Macquarie Securities, JP Morgan and Credit Suisse were also said to be in the race.

The deals may give foreign players an easy access to the domestic business while it gives the promoters to cash out early in wake of rising competition from big global players.