XCAP Securities PLC Agreement with Chola - Replacement (4707U)
03 December 2013 - 1:30AM
UK Regulatory
TIDMXCAP
RNS Number : 4707U
XCAP Securities PLC
02 December 2013
This announcement replaces RNS 2394U released at 0700 on Friday
29 November 2013.
The following amendments have been made: The fund management
agreement has been entered into with RCCR, a partner of Chola.
29 November 2013
XCAP Securities plc
("XCAP" or the "Company")
Agreement with Cholamandalam Securities Ltd
XCAP (AIM: XCAP), the independent wealth management and capital
markets investment bank is pleased to announce that it has entered
into a referral agreement with Cholamandalam Securities Ltd
("Chola"), and a fund management agreement with Riviera Capital
Consulting & Research Limited ("RCCR") (together the
"Agreements"). Chola, one of the leading securities firms in
southern India has a partnership with RCCR - an equity research and
advisory firm. Chola is part of the Murugappa Group, one of India's
prominent business conglomerates with assets in excess of US$ 4
billion.
The Agreements provide for co-operation in Corporate Finance and
Asset management across international capital markets. In Corporate
Finance, XCAP and Chola have agreed to work together exclusively on
transactions up to US$50 million, and above that on a case by case
basis. This co-operation has already resulted in XCAP and Chola
working on their first transaction together. In addition, both
parties will seek to assist clients of Chola wishing to access
capital in the UK, as well as clients of XCAP wishing to access
capital in India.
In Asset Management, Chola has agreed to distribute the Hume
fund range into its high net worth client base, including the Hume
Global Opportunities Fund, the Hume Multi-Asset Funds, and the soon
to be launched Hume Absolute Return Fund. This is a significant
development for XCAP Securities plc, in that it is able to access
one of the world's fastest growing wealth management markets. In
addition XCAP and RCCR have agreed to work together to launch an
India Fund specialising in growth companies that are not readily
accessible to international investors. The Fund will aim to pick
future market leaders across a broad range of sectors. The Fund
will fill a market gap where the historic focus has been on large
cap stocks in India. By utilising the research capability of RCCR,
with the fund management skills that XCAP brings, this Fund
provides a significant value proposition to investors.
In addition, the Agreements cover clients of both XCAP and Chola
that wish to invest in markets outside of their home markets. This
is particularly relevant in India, where it is expected that the
annual limit of funds that can be invested overseas will rise
significantly from where it is today.
The Board of XCAP believes that this is a significant
opportunity for XCAP to enter one of the world's fastest growing
economies with a partner who is highly recognised and respected in
their market.
Nitin B Parekh, Chief Executive Officer, commented "This is a
major step forward for XCAP Securities plc in entering the Indian
market. We are extremely confident of the long term growth
prospects and look forward to working closely with Chola Securities
on corporate opportunities. The ability to distribute our funds is
extremely exciting given the size and the growth rate of the wealth
management industry in India."
Vellayan Subbiah, Managing Director of Cholamandam Investment
and Finance Company Ltd, commented, "We are pleased with this
partnership. It is a significant step in giving our clients a
global reach. XCAP-Chola partnership will open gateways for HNWI
& small and medium corporates to tap into offshore
opportunities in Broking & Corporate Finance respectively. XCAP
will also benefit immensely from the large Chola client base and
RCCR's research expertise. We are looking forward to working
closely with our partners to ensure investors benefit from this
alliance."
About Cholamandalam Securities Ltd
Cholamandalam Securities Ltd is a securities brokerage firm
offering brokerage, research and wealth management services to
institutional and research investors. It is part of the Murugappa
Group, one of India's leading business conglomerates. The Group has
28 businesses including 11 listed on the NSE and BSE.
About Riviera Capital Consulting & Research Limited
Riviera Capital Consulting & Research Limited is an
investment advisory and consulting firm based in Chennai, India. It
was founded in 2011 by Venkat Chidambaram who has extensive
investment experience in Global Equities, Shariah mandates and
Emerging markets. He has held senior investment positions in GAM,
TFO Management and Towry. RCCR has a partnership with major
southern Indian securities brokerage firm Cholamandalam Securities
Ltd.
Enquiries:
XCAP Securities plc
Nitin Parekh (CEO) +44 (0)20 3101 7070
Grant Thornton UK LLP (Nominated
Adviser)
Philip Secrett / Melanie Frean
/ Jamie Barklem +44 (0)207 383 5100
24/7 Communications
Bob Bion +44 (0)7810 692 594
This information is provided by RNS
The company news service from the London Stock Exchange
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