Nimesh Kampani, after the separation of his firm JM Financial with JV partner Morgan Stanley, is re-organizing his operations to exploit future opportunities in the fast-growing Indian investment banking industry, with a view to give foreign investment banks, who are opening offices in India, a run for their money. A new management structure is being formalized for the group flagship company JM Financial by Mr. Kampani, who has carved up the operations of JM Financial into seven strategic business units to be managed by independent managing directors.
The investment banking business is split into corporate finance, M&A and global capital markets. Dipti Neelkantan, 48, who joined JM as a research analyst 25 years ago, has recently risen to the rank of MD & COO of the investment banking business. She is in charge of overall operations. Two MDs have been appointed for the corporate finance division, which is scaling up its operations. Nimesh Kampani’s son Vishal Kampani, 30, and BK Bansal, 53, will be heading this division. Adi Patel, 38, has been designated as head of the M&A division, while Atul Mehra, 39, has recently been elevated to the post of MD (global capital markets). Adi Patel, Atul Mehra and BK Bansal have been with JM for more than 15 years.
JM Financial is bringing in talent from outside to run the new-age businesses. Last month, Nityanath Ghanekar, 61, joined as CEO and MD of the mutual-fund business from global consulting firm PricewaterhouseCoopers. A few months ago, Dilip Kothari joined JM to head its private equity business from Olympus Capital. Rajeev Chitrabanu, 35, is CEO and MD of the financial services business, which includes wealth management and IPO distribution. Subodh Shinkar, 39, is the new COO of the division.
While Vipin Gupta, 35, is the MD of the fast-growing commodity business, Basant
Agarwal, 40, heads the special situations fund. JM Financial is also planning to create independent divisions for the fixed-income and research portfolios.
Thursday, March 22, 2007
Edelweiss to start asset management and NBFC businesses; recruits senior people for the same
Leading domestic investment bank Edelweiss will commence asset management and non-banking financial company (NBFC) businesses by investing a total of Rs. 400 crores in the new ventures. Edelweiss would invest Rs. 300 crores for the NBFC business and another Rs. 100 crores for the asset management business. The NBFC would be looking at mortgage business and other credit instruments. Edelweiss had received in-principal approval from SEBI for the asset management company.
Edelweiss also announced the appointment of senior executives for its new business of NBFC and AMC businesses. R Balakrishnan, who will head the NBFC business, has been appointed executive vice-president of Edelweiss. Mr. Balakrishnan earlier worked as Senior VP & Head of Equity Research at DSP Merrill Lynch. Prior to Edelweiss, he was an independent consultant and part of the senior management team at credit rating agency CRISIL. For the AMC business, Edelweiss appointed Jimmy Patel as the CEO. Patel’s earlier stints include CEO and COO of JM Financial Mutual Fund and with the Principal Group, where he was in-charge of their pension initiative in India. Edelweiss also took on board Peeyoosh Chadda of Barclays as co-head of the AMC business.
Read the Business Standard article.
Edelweiss also announced the appointment of senior executives for its new business of NBFC and AMC businesses. R Balakrishnan, who will head the NBFC business, has been appointed executive vice-president of Edelweiss. Mr. Balakrishnan earlier worked as Senior VP & Head of Equity Research at DSP Merrill Lynch. Prior to Edelweiss, he was an independent consultant and part of the senior management team at credit rating agency CRISIL. For the AMC business, Edelweiss appointed Jimmy Patel as the CEO. Patel’s earlier stints include CEO and COO of JM Financial Mutual Fund and with the Principal Group, where he was in-charge of their pension initiative in India. Edelweiss also took on board Peeyoosh Chadda of Barclays as co-head of the AMC business.
Read the Business Standard article.
Credit Suisse forms JV with GE for emerging markets infra fund
Zurich-based universal bank Credit Suisse has entered into a joint venture with General Electric (GE) for an infrastructure fund. The fund will invest in emerging markets with a substantial portion devoted for investments in the Indian infrastructure sector. The size of the fund is estimated to be around a $ bn-plus. The fund-raising is currently going on. The announcement of the fund comes in the wake of the resumption of Credit Suisse’s institutional broking business in India, after a gap of six years. Credit Suisse was suspended from trading in India for two years from April 2001 to April 2003 by the Securities and Exchange Board of India (SEBI) for alleged price manipulation.
The bank has roped in the services of V Anantharaman as head of investment banking in India. Mr. Anantharaman was earlier the head of corporate advisory services at Standard Chartered Bank.
Read the Business Standard article.
Related Post:
Credit Suisse launches Indian brokerage operations
The bank has roped in the services of V Anantharaman as head of investment banking in India. Mr. Anantharaman was earlier the head of corporate advisory services at Standard Chartered Bank.
Read the Business Standard article.
Related Post:
Credit Suisse launches Indian brokerage operations
Cargill Ventures invest $9 mn in IT firm KPIT Cummins
Cargill Ventures, the venture capital arm of Cargill, Inc., will invest a total of $9 mn in Indian IT consulting firm KPIT Cummins Infosystems. KPIT Cummins will issue shares of $4.5 mn on a preferential basis, in addition to warrants convertible into shares of up to $4.5 mn. The warrants will be convertible into shares at the end of 18 months from the date of issue-based on certain parameters.
Cargill is a privately held company with operations in 63 countries and revenues of over $75 bn. Cargill Ventures is a diversified growth-capital investor across the IT, life sciences and IT sectors.
Read more in the Business Standard article.
Cargill is a privately held company with operations in 63 countries and revenues of over $75 bn. Cargill Ventures is a diversified growth-capital investor across the IT, life sciences and IT sectors.
Read more in the Business Standard article.
SAIL and Jaiprakash Associates in cement production JV
The Steel Authority of India Limited (SAIL) has entered into a 26:74 joint venture with Jaiprakash Associates for producing 2,2 mn tonnes of cement. The venture will spend Rs. 600 crores to set up the new plant. SAIL will hold 26% stake in the venture while the balance will be held by Jaiprakash. The clinker and partial grinding unit of the plant would be located in Satna in Madhya Pradesh and slag cement would be made in Bhilai in Chhattisgarh. The project is expected to be completed in 37 months.
Two unique things about the project are that, firstly, this is the first of its kind public-private partnership in the cement sector. Secondly, SAIL’s foray into cement production is important as cement prices have shot up in wake of demand overshooting supplies. The country’s current cement production capacity is 165 mn tonnes. About 30 mn tonnes of new capacity is expected to be added in a couple of years. SAIL currently sells slag to cement companies through medium-term contracts but the exercise is not enough for a total disposal of its stocks. The JV would enable the company for more productive use of the waste generated by it while producing steel.
The JV would use slag generated from SAIL’s Bhilai Steel Plant as basic feed for cement production, and has already signed a 30-year agreement with the Bhilai Steel Plant for supply of slag. SAIL is also looking at using its slag generated from Bokaro Steel Plant for conversion to cement.
Read The Economic Times article.
Two unique things about the project are that, firstly, this is the first of its kind public-private partnership in the cement sector. Secondly, SAIL’s foray into cement production is important as cement prices have shot up in wake of demand overshooting supplies. The country’s current cement production capacity is 165 mn tonnes. About 30 mn tonnes of new capacity is expected to be added in a couple of years. SAIL currently sells slag to cement companies through medium-term contracts but the exercise is not enough for a total disposal of its stocks. The JV would enable the company for more productive use of the waste generated by it while producing steel.
The JV would use slag generated from SAIL’s Bhilai Steel Plant as basic feed for cement production, and has already signed a 30-year agreement with the Bhilai Steel Plant for supply of slag. SAIL is also looking at using its slag generated from Bokaro Steel Plant for conversion to cement.
Read The Economic Times article.
Merrill Lynch eyes stake in India Infoline distribution arm
US-based brokerage and investment bank Merrill Lynch has initiated talks with India Infoline for acquiring a significant stake in its distribution subsidiary, India Infoline Distribution Company Limited (IILD). Merrill had recently hiked its stake in India Infoline to 14.10%. It may pick up to 26% in IILD for over Rs. 150 crores. In December 2006, India Infoline sold its stake in the subsidiary Khambhat Investment & Trading Company Private Limited, a non-banking finance company, to Merrill Lynch.
Merrill Lynch plans to enter into the Indian mortgage business, and is accordingly planning a tie-up with India Infoline for the same. The company expects to create synergies with India Infoline as it has a wide retail network of over 200 branches. IILD, apart from the distribution of financial products such as mutual funds, IPOs and fixed deposits, also distributes mortgages and loan products.
Read more in the article in Business Standard.
Merrill Lynch plans to enter into the Indian mortgage business, and is accordingly planning a tie-up with India Infoline for the same. The company expects to create synergies with India Infoline as it has a wide retail network of over 200 branches. IILD, apart from the distribution of financial products such as mutual funds, IPOs and fixed deposits, also distributes mortgages and loan products.
Read more in the article in Business Standard.
Ujala maker Jyothy Laboratories plans Rs. 300 crore-IPO
Mumbai-based fast moving consumer goods company Jyothy Laboratories, famous for its Ujala brand of fabric whiteners, is planning to list on the stock exchanges by end of 2007. Jyothy Laboratories will raise Rs. 300 crores in an initial public offering. The company has reportedly appointed Kotak and Enam as advisors to the issue.
Jyothy Labs is a closely held company with about 70% stake being held by founder chairman and managing director M P Ramachandran and his family. The balance 30% is held by private equity firms CLSA and Actis along with a foreign subsidiary of ICICI Bank. The foreign investors are likely to exit the company at the time of the IPO.
Sales of Jyothy Laboratories are pegged at between Rs. 400-500 crores. The company is said to have been valued at around Rs. 1000 crores.
Read more on Moneycontrol.com.
Jyothy Labs is a closely held company with about 70% stake being held by founder chairman and managing director M P Ramachandran and his family. The balance 30% is held by private equity firms CLSA and Actis along with a foreign subsidiary of ICICI Bank. The foreign investors are likely to exit the company at the time of the IPO.
Sales of Jyothy Laboratories are pegged at between Rs. 400-500 crores. The company is said to have been valued at around Rs. 1000 crores.
Read more on Moneycontrol.com.
IFC invests $5 mn in rural banking-focused IT firm FINO
The World Bank PE arm, International Finance Corporation (IFC), will invest up to $5 mn in Financial Information Network & Operations (FINO), a technology service provider offering end-to-end IT solutions that help banks reach under-served rural markets in India. The investment comprises common equity of up to $2.5 mn and convertible preferred shares of up to $2.5 mn.
In India, IFC’s outstanding portfolio is $1.3 bn (as of June 2006) making it IFC’s fourth-largest country of operations. As the private sector arm of the World Bank Group, IFC has been showing interest to develop the Indian rural banking market.
Read The Economic Times article.
In India, IFC’s outstanding portfolio is $1.3 bn (as of June 2006) making it IFC’s fourth-largest country of operations. As the private sector arm of the World Bank Group, IFC has been showing interest to develop the Indian rural banking market.
Read The Economic Times article.
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