Vallabh Bhansali-controlled Enam Financial Consultants, one of the leading home-grown investment banks in India, is learnt to be in talks with JP Morgan for a strategic alliance.
Sources close to the developments said that the alliance with JP Morgan might also include acquisition of equity in Enam. Talks were at an advanced stage, they said.
Lehman Brothers, which had also expressed interest in Enam earlier, is learnt to be out of the race, making JP Morgan the sole candidate for a strategic tieup.
When contacted, an official spokesperson for Enam said: "We do keep getting offers for a strategic alliance. It is a continuous evolution process. Presently, we are solo." An official spokesperson for JP Morgan said: "As a policy we don't comment on market speculations."The sources, however, said the JP Morgan was looking at buying 50 per cent stake in Enam.
JP Morgan, which ended its joint venture with ICICI Securities in the late nineties, has not been very active in the Indian capital market since then.
While Enam is a major player in investment banking and in the equity capital market, JP Morgan is among the top five players in the institutional broking business in India.
The move for an alliance with Enam comes after global big-wigs Morgan Stanley snapped ties with JM Financial and Goldman Sachs split with Kotak Mahindra. However, investment bankers say JP Morgan is relatively new to the Indian market unlike Morgan Stanley and Goldman Sachs.
With its network of over 5,000 dedicated franchisees, Enam mobilises approximately 25 per cent of all funds raised in the Indian equity markets. It is also one of the largest underwriters in India.
The company also provides investment banking, corporate advisory, equity, debt and capital market services to companies and institutions.
