Atul Choksey, the former co-promoter of Asian Paints, has exited from Standard Chartered Mutual Fund.
Choksey, a financial investor known for his eye to spot good investments, made a cool Rs 129 crore (Rs billion) by selling his 25 per cent stake in the asset management company to the Swiss major UBS. In the late 1990s, Choksey sold 9.1 per cent stake in Asian Paints for Rs 128.70 crore (Rs 1.287 billion).
UBS Global Asset Management had bought Standard Chartered's mutual fund management business in India for around Rs 516 crore (Rs 5.16 billion).
As per the current guidelines, any foreign bank (MNC) buying 100 per cent equity in an Indian company will have to infuse $50 million additional capital into the domestic company (Press Note.2).
Following this, the acquisition cost of UBS goes up by another $50 million as it takes 100 per cent control of Standard Chartered Mutual Fund.
Last week, the Zurich-based bank received the approval from Securities and Exchange Board of India for the acquisition.
UBS and Naval Bir Kumar, managing director of Standard Chartered MF declined to comment. Despite several attempts Atul Choksey could not be contacted.
Standard Chartered MF currently manages assets in excess of Rs 13,400 crore (Rs 134 billion). The sponsor Standard Chartered group held 75 per cent stake in Standard Chartered Mutual Fund and the balance was held by Choksey.
UBS and Standard Chartered had earlier said that they intended to form a "strategic alliance" to distribute funds in Asia, West Asia and Africa. While details were still being worked out, the deal was expected to give Standard Chartered access to the Swiss bank's asset management unit, as well as investment banking products.
The acquisition included 16 mutual funds, 10 of which were fixed income, two involved "asset allocation" and four were in equities, as per the UBS press release, issued in January.
UBS is also planning to enter into private banking. Private banking mainly comprises wealth management and advisory services for high networth clients.
