Financial meltdown is contributing to entrepreneurship in the Indian investment banking space. Dawnay Day AV’s top management team has quit to start their own businesses. Those who quit include Arpit Agarwal, Group CEO & MD, Surbhi Gupta, Executive Director, Seshadri Bharathan, Head of Stock Broking, Sajjan Desai, Head of Research, and Yogesh Bajaj, Business Head, Distribution, according to Business Standard.
Private equity fund New Silk Route had acquired Dawnay Day AV in August last year. It had valued the firm at Rs 200 crore. Alok Vajpeyi, the current vice-chairman of Dawnay Day, who had sold his entire 25% stake in the company to New Silk Route, may also quit in a few months, the reports indcated. However, when contacted by VCCircle, Vajpeyi denied such plans and said that he is still not sure on his plans to leave.
Surbhi Gupta and Arpit Agarwal are planning to float a private investment firm called ARYSS Knowledge Partners, the report said. The firm will primarily look at investing in distressed assets. The firm will also venture into the education space. It will set up a high end wealth management and financial education business, which will be a greenfield project. The course content for the same is still being designed. Both the businesses will be funded by private investors.
Seshadri Bharathan, on the other hand, is planning to start a financial services firm.
Dawnay Day AV’s acquisition by New Silk Route has been completed, though regulatory approvals for some of the proposed businesses are yet to be received. The firm will be renamed after the deal gets the approval. Dawnay Day AV was sold after the parent Dawnay Day was unable continue with the operations of the firm in the midst of the liquidity crunch. Vajpeyi had tied up with Dawnay Day International in 2005 to set up Dawnay Day AV, which provides services like stock broking, derivatives, third-party mutual fund products, and wealth management services.