Hemendra Kothari has sold his remaining stake in DSP Merrill Lynch, one of the largest investment banks in the country. Now, what next? In a television interview today, Kothari said he would focus on newer business opportunities in areas like health and education. Kothari told NDTV Profit that he would also take up philanthropy and work for wildlife, environment and energy conservation.
Kothari will also focus on DSP Blackrock Investment Managers, a mutual fund joint venture formed couple of years ago. He remains as Non-Executive Vice Chairman of this company. His daughter Aditi Kothari is part of the management team running the asset management firm. Kothari family holds its 60% stake in DSP BlackRock Investment Managers, while BlackRock will hold the remaining 40%.
Kothari started as a stock broker in 1975 by setting up DSP Financial Consultants. He formed a joint venture with Merrill Lynch in 1995, and later expanded to a whole lot of financial activities like investment banking, wealth management, mutual funds, and merchant banking.
In 2005, Kothari sold his close to 50% stake in DSP Merrill Lynch to Merrill Lynch for $500 million. He was left with 10% stake, which he has exited now. This deal would have fetched him at least $100 million.
He also revealed that he had planned to step down as the DSPML chairperson sometime back and was waiting for the Bank of America and DSP Merril Lynch merger to take place before stepping down.
In an interview to NDTV Profit, Kothari said, “Today we have a team of more than 450 people, all well qualified and very capable. My stepping down will not make much difference to the company as I don’t think one individual makes too much difference in organisation.”