Qatar-based QInvest will sell its 26% stake in Ambit Group to Ashok Wadhwa, group chief executive officer (CEO) of Ambit Holdings, as the investment group is looking for an exit.
Ambit employees hold about 60% in the firm.
“QInvest has been our financial partners from the past seven years now. It is only fair that we give them an exit. I will be buying out their stake alone or along with other Ambit employees,” Wadhwa said in an interview.
QInvest had bought the 26% stake in the financial services company in 2011 for Rs250 crore.
Wadhwa did not disclose the exit value or the exact timing of the exit but said that it would be “anytime soon”.
In another development, Ambit Capital chief executive officer Saurabh Mukherjea has decided to leave the company to start his own business.
Both Wadhwa and Mukherjea confirmed the development.
Ambit Capital includes three business—institutional equities, private wealth and asset management.
Two people close to development said that the deal will close in the next three months.
Wadhwa and Mukherjea, however, denied that there was any friction between them and said they were on “amicable” terms.
Mukherjea will officially step down between July and September.
“I have not decided right now what exactly will I be doing. It will definitely be a financial services business but if it will be an asset management business or wealth management or financial intermediation is not yet decided,” Mukherjea said.
Mukherjea has been with Ambit for eight years and has helped the firm build and expand its equity business. “For the last 15 months, Saurabh has been actively working with Pramod and others to ensure smooth handholding,” Wadhwa said.
Pramod Gubbi, managing director, will continue to head the institutional equities business.
Wadhwa along with Rahul Gupta, who is co-chief executive officer for Ambit Group, will jointly look after the asset management and private wealth business.
“We have not decided yet if we will be bringing a new CEO for Ambit Capital from outside or if someone from within Ambit will heading the businesses,” Wadhwa said.
Ambit’s private wealth business has an AUM of Rs5,000 crore whereas the AUM for its wealth management business is pegged at Rs750 crore.
Source: Mint