The Hindu Business Line : UK co Dawnay Day plans MF, stock broking biz in India

As part of it plans, the $5-billion assets group, wants to set-up a mutual fund, retail stock broking, portfolio and wealth management business and an India-dedicated fund to invest in domestic equity market.

In real estate, it plans to invest $50 million and gradually increase the investment to $200 million.

"The next six months would see Dawnay Day spreading its wings in India across the financial services landscape," Mr Peter Klimt, Chief Executive, Dawnay Day International Ltd, told Business Line.

The group has set-up a joint venture in India with investment banker Mr Alok Vajpeyi, who has had a long stint in Indian financial services business.

"The joint venture has already received a portfolio management services licence from SEBI while the broking licence is expected by the first quarter of 2006," said Mr Vajpeyi, Vice-Chairman and Managing Director of Dawnay Day AV Financial Services.

He said in stock broking business, the firm would rollout about 20 retail outlets to start with. The company already has employed about 25 relationship managers and proposes to increase the number to 75 by next year. For its mutual fund, Dawnay Day has identified a chief investment officer and expects the mutual fund pie to get bigger with higher disposable incomes.

Dawnay Day, which has a FII registration in India, plans to raise $50-100 million for an India-dedicated fund. "Reputation, strong infrastructure and being a long-term player would be our strengths," said Mr Vajpeyi.

On the real estate front, the group plans to run budget hotels in non-metros. "Indian metros are overheated as far as hotels are concerned," said Mr Klimt. The group proposes a $200-million investment in this sector, which would include a $50-million equity component.

Mr Klimt said commercial real estate for investment would be bought wherever returns appear good. A real estate fund would also be available in the future.

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