MOTILAL Oswal Securities Ltd is to take over the capital market operations of the Kochi-based Peninsular Capital Market, for an undisclosed amount. Peninsular has 257 branches spread across 12 States, with major presence in Kerala, Tamil Nadu, Karnataka and Andhra Pradesh, and an active customer base of over 30,000. A large number of these branches are run by franchisees.
Of the 200 staff in Peninsular, the direct employees would be absorbed by the new management, Mr Akshay Agarwal, Managing Director of Peninsular, said. The deal leaves Peninsular free to pursue its commodity derivatives trading operations through Peninsular Multi Comex Services Ltd as well as portfolio management services.
Through this strategic move, Motilal Oswal Securities is reinforcing its presence in South India. The company is also giving a new thrust to the retail segment, sources said. Mr Motilal Oswal, Chairman and Managing Director Motilal Oswal Securities Ltd and Mr T.S. Anantharaman, Chairman of Peninsular Capital Market, signed a memorandum of understanding for this acquisition in Kochi on Friday.
While a new franchisee of Motilal Oswal has to pay a deposit of Rs 3 lakh, existing franchisees of Peninsular need make no further payments, other than Rs 1 lakh they have already remitted.