Axis Bank's private equity arm Axis Private Equity is mulling to separate itself from the parent company in the coming weeks — a move that is part of the group's overall restructuring plan.
"There is a chance that this (demerger) could happen in the current fiscal itself, or it may take a few more weeks," Axis Private Equity Managing Director and Chief Executive Officer Alok Gupta told PTI today.
The PE firm, which has a fund-size of $150-million, decided to branch out from its parent with a view to bring in "better alignment between its investors and investment managers", Gupta said.
The move comes in the wake of institutional investors reportedly having concerns about the fund continuing to be a part of Axis Bank, which could result in possible conflict of interest. Axis Bank is also a major investor in the PE firm.
Though the demerger process is under way, the Group is yet to decide on the new structure of the demerged entity, particularly on the issue of whether to accord complete operational independence to the PE arm, Gupta said.
"It (demerger) is a win-win situation for investors and fund managers. If you look at the international space, most of the PEs have branched out of their parent firms at some stage of their growth," he said.