India: Boutique i-bank Veda founders split, Vinod Kumar to set up own firm

Vinod Kumar. In the last 12 years, Veda has closed more than 100 transactions aggregating to $3.5 billion in value, according to the company website. Photo: Mint.

The founders of Veda Corporate Advisors Pvt. Ltd have parted ways, with co-founder Vinod Kumar leaving the leading boutique investment bank based in south India to set up his own company.

Veda, based in Chennai, was founded in 2003 by Kumar and C. Venkat Subramanyam, who together owned a stake of about 75% in the company that has 15 employees in Chennai and Bengaluru.

Breaking up an association dating back 25 years with Subramanyam, Kumar plans to form his own boutique bank in Chennai.

Before launching Veda in 2003, Kumar and Subramanyam co-founded Mantra Consultants, an investment bank based in south India, in 1998; it was acquired by Ernst and Young (now known as EY) in 2001. Both Kumar and Subramanyam were associate directors at EY before co-founding Veda. Kumar has more than 22 years of hands-on experience in the investment banking business.

Srikanth Narasimhan, another founder and director who joined the firm in 2005, holds a minority stake in Veda. Veda’s five-member leadership team also includes directors Sivaraj Sekhar and Vijay Kaushik. Last month, associate director Abhishek Gupta joined Mumbai-based investment bank Equirus Capital Pvt. Ltd as a director.

When contacted, Kumar confirmed the development. “It’s true that I am moving out of Veda and setting up my own venture, and I’m not able to disclose further (details) at this point of time.”

“I don’t want to comment on Vinod’s plans, but I can say that Veda is a strong and well known brand, the core team—four out of five directors—remain with the firm and we continue to remain as a leading investment bank in the mid-market space,” said Subramanyam.

In the last 12 years, Veda has closed more than 100 transactions aggregating to $3.5 billion in value, according to the company website. Veda has been active in private equity, mergers & acquisitions and structured financing in information technology (IT)/and IT-enabled services, healthcare, real estate, infrastructure, food/agriculture, consumer and business services.

Major deals on which Veda worked include US fund Carlyle Group LP’s Rs900-crore investment in Metropolis Healthcare Ltd in 2015; IHH Healthcare Bhd’s buyouts of Hyderabad-based Global Hospitals and Continental Hospitals in 2015; Carlyle’s majority stake purchase in provider of publishing and technical services Newgen KnowledgeWorks Pvt. Ltd in 2014; and Aliaxis Group’s Rs1,000-crore buyout of plastic pipe manufacturer Ashirvad Pipes Pvt. Ltd in 2013.

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This article was first published on Livemint.com