Kothari: Bidding farewell

Mumbai, March 18: Veteran investment banker Hemendra Kothari has sold his remaining 10 per cent stake in DSP Merrill Lynch to Bank of America and will step down as chairman of the company on March 31.

Kothari decided to exit in end 2005 and first sold close to 50 per cent in March 2006 to the US investment bank for Rs 2,250 crore.

At that time, the 62-year-old banker was credited with closing the deal at a great price.

The value of the latest sale by Kothari could not be ascertained.

However, it is quite likely that the valuation is lower compared with 2006.

Speaking to The Telegraph, Kothari said, “This is not a sudden move. I had planned to exit Merrill Lynch somewhere in September-October last year. I believe it is the right time to leave when people want you to stay.”

“I could have got a much higher valuation at a later date as I expect Merrill will reach new heights with Bank of America but I’ve decided to call it a day,” said Kothari.

DSP Merrill Lynch is now wholly owned by Bank of America, which took over the troubled entity in September 2008.

Kevan Watts is the India head of the company, while Vishwabir Ahuja is the head of corporate banking.

In a statement, Watts said, “Our businesses are well positioned and I am looking forward to working with the combined team (DSP Merrill and Bank of America) in India.”

Kothari will continue to be the non-executive chairman of asset management firm DSPBlack Rock Investment Managers where his family has a 60 per cent stake.