BackI-bank Allegro Advisors acquires Viedea Capital
On the acquisition, Viedea’s director says we wanted a bigger platform to help us do large deals
Premium(Deepak Srinath, director of Viedea Capital, says promoters tend to prefer large banks for doing deals worth $30 million or $40 million.)
Mumbai: Investment bank Allegro Advisors Pvt Ltd, associated with transactions such as Biocon Ltd’s divestment of its enzyme business and Royal Orchid Hotels Ltd’s public issue, has acquired Bangalore-based boutique i-bank Viedea Capital for an undisclosed amount.
Allegero, which specializes in healthcare and consumer sector, infrastructure and industrials transactions, so far did not have a technology practice. Viedea, on the other hand, is a niche i-bank focused on technology and tech-enabled consumer services.
“They wanted to start a new economy practice and we wanted a bigger platform to help us do large-ticket deals," said Deepak Srinath, director of Viedea Capital, adding that it is not easy for boutique i-banks to close large deals on their own. “There is a sort of glass ceiling there. Promoters tend to prefer large banks for doing deals worth $30 million or $40 million," he said.
While there has been a large-ticket i-bank acquisition deal in Axis Bank’s takeover of the investment banking arm of Enam Securities for Rs2,067 crore in 2010, the purchase of boutiques are rare in India.
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