Kuwait's Global Investment buys 11% in MAPE

MUMBAI: Kuwait-based Global Investment House (Global) has picked up an 11.11% equity stake in MAPE Advisory Group, a boutique investment bank, for about $10 million (about Rs 48 crore), valuing the firm at $90 million. MAPE has offered the stake to Global by way of a fresh issue of shares.

The funds raised through this transaction would be utilised by MAPE as working capital to boost its institutional broking business.

Confirming the deal, Jacob Mathew, co-founder of MAPE, said, "We look forward to our association with Global and believe that they will add significant value in our ongoing journey. This investment ��� amid difficult market conditions ��� is a vote of confidence portrayed by our strong franchise."

Post stake sale, Mr Mathew and Mr M Ramprasad, the promoters of MAPE, will own roughly 70% of the company���s equity.

MAPE, which was founded in 2001, focuses on M&As, private equity fund raising, debt syndication, cross border advisory services and institutional broking.

It has closed over 60 transactions ��� the recent ones being Mahindra's acquisition of Kinetic Motors, CVCI's investments into Mumbai-based broking firm Sharekhan and ICICI Ventures, and Baring's investments into Karvy Stock Broking ��� across various sectors.

The total value of these deals add up to nearly $1.9 billion. MAPE currently employs around 60 professionals across its offices in India and the United States.
This strategic alliance finally gives Global a toehold in India. It may be recalled that the Kuwait-based firm was a strong contender for UTI Securities, which was eventually lapped up by Standard Chartered bank.

Global is one of the leading mid-sized investment banks in the Gulf and has registered itself as a foreign institutional investor (FII) with SEBI.

Recently, another Gulf-based investor, the Eastgate Capital Group (a subsidiary of the National Commercial Bank of Saudi Arabia), picked up an undisclosed stake in Mumbai-based Avendus Capital for about Rs 100 crore.