Hemendra Kothari & life after $500 mn

Far from speculation that he is uninterested in working life and is contemplating retirement, the master dealmaker who, together with Nimesh Kampani and Uday Kotak form the mighty ‘Three Ks’ of Mumbai’s investment banking circuit, is preparing for additional responsibilities as vice-chairman of Merrill Lynch International and member of the ML Asia Pacific Executive Management Committee.

‘‘I have only requested them not to ask me to travel too much,’’ he smiles. ‘‘I don’t want to be a non-resident Indian. My city is Mumbai.’’ Kothari explains that his deal with ML was more a ‘‘family arrangement’’, going by the close relationship which DSP and Merrill Lynch have shared ever since the 1980s, following which they took the plunge and got into the JV.

With the latest deal, Kothari retains a 10 per cent stake in DSPML, while Merrill will hold 90 per cent. On the other hand, the mutual fund business will have Kothari holding 60 per cent and DSP Merrill holding the balance. ‘‘Even the mutual fund business will be given a big push now,’’ he says, making it clear that retirement was farthest from his mind.

‘‘There’s lots of things to do now,’’ he says, when asked about the $500 million. Coming from a family which is involved in charitable work, Kothari now plans to set up a foundation which will involve itself in hospitals, cultural activities and also sport, which is a passion.

With wildlife another love, Kothari plans to ramp up the activities of the Wildlife Conservation Trust (WCT) with which he is associated. ‘‘I’ve been to all the sanctuaries,’’ he says. Private equity investments are also on the anvil.

Why did he sell his stake now? Says Kothari: ‘‘We’ve been talking about it informally for some time. But now, we wanted to take the venture to the next level. With new products, including structured products, there would also be a requirement of more capital, though we are well capitalized at around $100 million even now.’’

He says with the Indian economy on a firm footing, there were enormous opportunities which could continue to be tapped. But he says things will not change for him in DSPML. “It’s not a case of paisa leke bhago in this case! I decided to give back something to the company and the employees and to be around them,” he says, referring to his continuance as chairman of DSPML even after the deal. “They also wanted to retain the DSP name since they feel it is a strong brand.”

Generally, it’s business as usual even now, he declares. When reminded that there’s a little difference, since there’s a $500 million cheque in his pocket, Kothari laughs: “It could have been a billion dollars if it was three years later.”