A top Mumbai-based bond broker, A K Capital, has acquired 70.83 percent stake in a non-banking finance company (NBFC), Girdhar Vanijya, for Rs 1.48 crore. Through the NBFC, A K Capital plans to start an investment banking unit for the bond market.
Talking to Business Standard, A K Capital’s Senior Vice-President Vikas Jain said, “There is tremendous opportunity in the corporate bond market, which is going to witness high activity in the coming days.”
Recently, the Rs 500-crore bond issue of Tata Capital was a huge success. It received record subscription from the retail segment too. However, the NBCF business has been under consistent pressure after the meltdown in stock markets in 2008 as client defaults piled up.
Last year, A K Capital had announced its plan to either float or acquire an NBFC and had also kept aside nearly Rs 5 crore for the same.
A K Capital has been playing a pivotal role in debt market private placements for banks, the government and other financial institutions, is one of the biggest competitor of Mumbai’s oldest brokerage house Darashaw & Co. A K Capital had consistently been there in the top two arrangers of debt through the private placement route for six consecutive years from FY03 to FY08.
