Indian unit of European investment bank NM Rothschild & Sons change strategy to focus on mergers and acquisitions in India

The Indian unit of European investment bank, NM Rothschild and Sons, reported that it plans to shift its focus to mergers and acquisitions in the country. The firm, NM Rothschild and Sons India Pvt Ltd, said that it will bias its operations on advising companies on equity raising, debt and restructuring of companies in addition to mergers and acquisitions.

Other than that, the bank reported that it will not be bidding for the Indian government’s disinvestment mandates, reports said. A senior company official was quoted saying the firm was pondering a change of strategy over how it undertakes business in India.

In addition to the above, NM Rothschild as well said that it will not fund companies anymore using its own balance sheet like its rivals in the Industry do. In an interview last week, the company’s chief executive said that NM Rothschild has a well founded footing in the mergers and acquisition, restructuring and advisory role to firms over debt and equity raising and thus is keen on sustaining that line of business in the country.

NM Rothschild managing director, Navin Wadhwani said the firm’s plan is to provide advisory services that will enable it focus on its core areas of operations and ensure high quality. Further more, he added that such quality will be sought regardless of the deal size, whether a $50 million or $5 billion deal, said Navin.

It is believed the bank is keen on imitating its global equity advisory service model in India and as such will only deal with particular consortiums that enable it establish a presence across business verticals. The managing director said NM Rothschild was pickier for good reason arguing that, in the Indian investment market, banks fight each other for deals in the top tier and especially in the government’s disinvestments drive in spite of the fact that they have almost zero fees.

NM Rothschild and Sons India unit has advised major firms such as Tata Steel Ltd when it acquired Corus, GMR Group in its acquisition of InterGen NV, a Netherlands based firm and the Indian government’s raising of about 65,000 crore from the sale of third generation telecom spectrum.

N M Rothschild & Sons is an investment bank company of the Rothschild family. It was founded in the City of London in 1811 and is now a global firm with over 40 offices around the world.

18 Aug 2010.