Wednesday, January 17, 2007

UTI Securities witnesses senior management exits in i-banking unit

Mumbai-based securities firm, UTI Securities, is witnessing major people exits, particularly in its investment banking division, with six senior and middle level executives resigning from the organization in the past one month. The list includes Head of Investment Banking, K Srinivas, company VP, Jinesh Mehta, VP of Broking, Sunil Nair, and VP – IPO and MF Distribution, Nirmal Rewaria.

Their resignations may prompt more junior executives to take the same route amid concerns over the prospects of the organization in the absence of top executives. Factors like lack of both focus and flexibility in decision making are cited as a few major reasons behind their leaving the organization.

Originally promoted by UTI, UTI Securities is now a subsidiary of Securities Trading Corporation of India (STCI). UTI Securities was incorporated as UTI’s 100% subsidiary in 1994. On repealing of the UTI Act, the management of the firm was transferred to the Administrator of the Specified Undertaking of UTI (UTI-I). In April 2006, the broking firm was sold to STCI for Rs. 265 crores.

UTI Securities recently completed Rs. 157 crore-IPO of Essdee Aluminium. Some of the forthcoming IPOs managed by the merchant banker include Pophiraju Industries (Rs. 38 crores), SMS Pharmaceuticals (approximately Rs. 100 crores) and Euro Ceramics (Rs. 90-100 crores).

Read more on this news in The Economic Times.
Related Post: Key senior people exit Avendus Advisors to float boutique investment bank

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