XCAP Securities PLC Agreement with Chola - Replacement (4707U)

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)                   [phone] 
 Grant Thornton UK LLP (Nominated 
  Adviser) 
  Philip Secrett / Melanie Frean 
  / Jamie Barklem                      [phone] 
 24/7 Communications 
  Bob Bion                             [phone] 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

AGRFSSFLEFDSEEE