The deal is official. Tata Capital, the financial services and investment arm of Tata Sons, has signed a memorandum of understanding with Mitsubishi UFJ Securities Co (MUS) for investment banking, global equity offerings and other services. The financial terms are not disclosed. The agreement covers a wide range of strategic business areas on the Indo-Japanese corridor.
Investment Banking: Tata Capital and MUS would consider collaborating on possible cross border investment banking transactions, mergers and acquisition advisory, structured finance solutions including financing through Japanese and other equity and debt capital markets for clients seeking to tap international markets.
These transactions could either be inbound, i.e. Japanese entities seeking to establish an Indian foothold, or outbound, i.e. Indian entities seeking to invest in Japanese companies or technology for synergistic or business expansion considerations.
Global Offering of Indian Equities: Both the companies would use their combined expertise towards providing a ‘one-stop’ securities shop for Japanese and other foreign retail and institutional clients seeking to invest in the Indian equities secondary market. They would also explore other technology related initiatives such as a mobile/online trading platform.
Development of the Local Bond Market: They would consider also collaborating in developing the Indian domestic corporate bond market and would also discuss possibilities for expanding debt investments from Japan and other countries.