CLSA’s top India executives to join local broker Infoline

CLSA’s top India executives to join local broker Infoline
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First Published: Tue, May 29 2007. 12 41 AM IST
Updated: Tue, May 29 2007. 12 41 AM IST
Mumbai: CLSA Ltd’s India country head H. Nemkumar, director of sales Bharat Parajia and two other executives plan to join India Infoline Ltd, lured by signing bonuses of as much as Rs44 crore ($11 million) and the option to buy shares at below-market prices.
India Infoline chairman Nirmal Jain said he’d hired the four to build the Mumbai-based brokerage’s corporate finance business. Shares of India Infoline rose up to 45%.
CLSA Ltd, the Asian securities arm of France’s Credit Agricole SA, is losing senior executives at a time India’s stock market is approaching an all-time high and companies in the world’s second-fastest growing major economy are raising funds at a record pace.
“We want to emerge as a meaningful player in the institutional business, so these hires will fit well into our expansion plans,” Jain said. “We already have a very strong retail business, now we want to add other businesses like investment banking and asset management services.”
Simone Wheeler, Hong Kong-based spokeswoman at CLSA, confirmed the resignations by email. Aniruddha Dange, the head of research at CLSA, and Vasudev Jaganath, head of sales, will also join the local brokerage. Jaganath declined to comment, citing CLSA’s disclosure rules.
The four executives have the right to buy nine million shares in India Infoline at Rs440 apiece in 18 months, a 24% discount to the stock’s closing price today. India Infoline hired the executives to help grow its investment banking, institutional equities and asset management businesses in the country, the company said in a statement to the Bombay Stock Exchange (BSE) on 25 May. India Infoline’s shares surged Rs134.8, or a record 30.2%, to Rs580.85 at the 3:30pm close on BSE.
The brokerage, in which Citigroup Inc., Merrill Lynch & Co. and Franklin Templeton Investment Funds have bought stakes, reported profit in the quarter ended March 31 rose 57% to Rs16.06 crores while income surged more than 11-fold to Rs220 crore.
India Infoline offers services ranging from equity and commodity trading to research and owns and manages the online trading website www.5paisa.com.
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First Published: Tue, May 29 2007. 12 41 AM IST
More Topics: Money Matters | Equities |