Axis Private Equity Limited, a 100% subsidiary of Axis Bank, announced the appointment of Arun Prakash S. Korati as the acting CEO. Hereplaces Alok Gupta, Managing Director and CEO, who resigned recently citing personal reasons. Gupta's resignation has been accepted by the Board of Axis Private Equity, a statement said.
Korati joined Axis Private Equity in June, 2007 and is currently an Executive Director of the company. He has been actively involved in the strategic and investment decisions of the company. Axis Private
Equity will continue to leverage opportunities available in the infrastructure space.
Earlier, India's third-largest private bank Axis, said it will hive off its Rs 600 crore private quity business, following a strategic review that took place after Shikha Sharma joined as managing director and CEO of Axis Bank in June 2009. It received bids from six suitors including IL&FS Investment Managers, Aditya Birla Private Equity, Shapoorji Pallonji group and US-based Darby Private Equity.
But other investors in Axis PE, the state owned banks including Canara Bank, Bank of Baroda, Union Bank of India, United Bank of India, Corporation Bank and Punjab National Bank opposed the move saying that they invested in the business because of Axis Bank's reputation and were not in favour of ownership in the hands of professionals.
In 2008, Axis Private Equity had raised Rs 600 crore for its infrastructure fund, with an anchor contribution of Rs 230 crore from Axis Bank and the rest of the fund was raised from other state-owned
banks. The 10-year infrastructure fund has invested about Rs 390 crore so far.