BankMuscat buys Mangal Keshav pie

BankMuscat, Oman's largest listed company, said it had agreed to buy 43 per cent stake in brokerage Mangal Keshav group for an undisclosed sum.

With this acquisition, BankMuscat has become the single-largest investor in the Indian financial services and securities sector from the Sultanate.

The financial due diligence on behalf of BankMuscat was done by PriceWaterhouse Coopers India, while the legal due diligence was done by Amarchand Mangaldas. The transaction is expected to be completed in first quarter of 2007.

AbdulRazak Ali Issa, chief executive of BankMuscat SAOG, said in a release: "Mangal Keshav would be our vehicle for exposure to high growth in Indian securities.

The Mangal Keshav Group was set up in 1939 and is one of the oldest brokerage houses in India.

With a growing presence in securities trading, commodities trading, insurance broking and IPO/Mutual fund distribution space, the group is one of the top 20 brokers in the country (by market share) and is a member of all leading equity and commodity exchanges.

Besides it also member of the Dubai Gold & Commodities Exchange. The group also has an office in Dubai.

As per Morgan Stanley research, the Indian equity markets is seeing one of the strongest rallies and trading volumes are expected to double to $3.2 trillion in 2010 from about $1.6 trillion currently.

Morgan Stanley projects the Indian brokerage business to grow to $3.9 billion by 2015. It is in recognition of these trends that several leading international banks "" Citi, BNP, ABN Amro, etc "" have announced their foray in the securities business in India.

"BankMuscat, on its part, has been scanning the Indian financial services environment for the past three years and has reviewed various investment opportunities. Mangal Keshav with its 70-year track record and strong retail presence fitted well with our objectives. In line with BankMuscat's overall investment philosophy, the Bank views this acquisition as a long term strategic partnership between the two organisations," AbdulRazak said.

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BankMuscat has become the single-largest investor in the Indian financial services and securities sector from the Sultanate

Financial due diligence on behalf of BankMuscat was done by PriceWaterhouse Coopers India

Legal due diligence was done by Amarchand Mangaldas

BankMuscat hopes to make Mangal Keshav its vehicle for exposure to high growth in the domestic securities market

A member of the Dubai Gold & Commodities Exchange, Mangal Keshav has a presence in Dubai