Shyam Shenthar, a partner in Avendus Advisors, has left the company with four key members of his team to start his own investment advisory that aims to target a largely untapped market for mergers and acquisitions and private equity in mid-cap companies.
Shenthar told Hindustan Times from Bangalore that TR Srinivas of Taib Securities is also a part of the start-up venture, which is yet to be named and expected to operate from Mumbai and Bangalore.
Avendus has been one of India’s ten top investment advisory companies and has completed deals worth well over $ 532 million (Rs 2,300 crore) in the last two years. The company has declared 34 deals in the same period.
“We are looking at the boutique investment space and are aiming to approach the Japanese markets,” Shenthar said.
The development follows a shake-up in the company that resulted in restive executives looking for fresh opportunities, industry sources said.
The new company plans to focus on the booming mergers and acquisitions space in India and intends to work with private equity players and the capital markets, said a source close to the development. The company would also look at wealth management services and financial services space, the source added.
Shenthar was supervising the Capital Markets and Broking activities of Avendus.
About Rs. 500 crore were invested through institutional equity coming into India in the last year alone in mid-sized companies.
Investment banking opportunities in India are on a phenomenal growth path, and while multinational companies may on an average spend a million dollars each every year in investment banking fees alone, in India and yet these are small compared to global levels, industry officials say
Deepesh Garg, Assistant Vice-President in the Consumer Products and Services Team, and Shiraz Bugwadia, Assistant Vice-President in charge of Pharmaceuticals and Healthcare, are among those joining Shenthar.
Wealth management and institutional broking are also said to be increasingly lucrative while being largely untapped, while initial public offerings (IPOs) of shares and institutional placements have also gained momentum in the past year.