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Reliance Capital to buy majority stake in Quant Capital

30 Nov 2009 Evaluate

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.

 

According to Sandeep Tandon, MD & CEO of Quant Capital, it would be a win-win situation for both of them. The company would use the infused money to expand and strengthen its operations in wealth management, currencies and commodities.

 

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.

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