Newsmaker: Analjit Singh

Only connect Act II

Analjit Singh

A year ago, Max India boss Analjit Singh was telling journalists he was just waiting for the Hutchison-Essar joint venture mobile operation to go public to complete his exit from the mobile phone business.

That process began in 1998 when he cashed out for Rs 561 crore by selling 41 per cent from the Mumbai mobile services joint venture in favour of partner, Hong Kong-based Hutchison Whampoa. Last November he sold another chunk of 3 per cent for Rs 657 crore.

Now he's back in Hutch Essar "" this time in his personal capacity "" picking up a 7.59 per cent stake from Kotak Mahindra Bank in Hutch-Essar for Rs 792 crore.

That the initial public offer has been delayed for well over a year is now well known. A subject of feverish market speculation, primarily due to the complex nature of the Hutch-Essar holding, the public offer would have led to the unlocking of value of what is without doubt a goldmine estimated at a sizeable $8-10 billion.

Having made his first pot of gold from telecom, Singh, the youngest son of Bhai Mohan Singh, has since been in investment mode, setting up healthcare (Max Healthcare) and insurance businesses (Max New York Life).

When Singh sold out, the money he made was unprecedented. Today, when you look at other subsequent mega telecom deals (Rajiv Chandrasekhar selling BPL Mobile to Essar for over $1 billion, and Sterling group boss C Sivasankaran's recent sale of Aircel to Maxis for a similar amount) "" the 1998 deal pales in comparison.

No one who knows Singh would have imagined him back again in the telecom limelight. The buzz was that he joined hands with Hutchison to strengthen it in India.

In fact, Hutchison Telecom announced that it has a close strategic partnership with Singh's investment companies. Singh bailed out Hutchison when it had just three days left to comply with the revised FDI guidelines for telecom.

One thing is clear: he once again stands to gain a windfall whether he chooses to exit lateror stay on for dividends. In effect, Singh is not back just to make money; his presence sends a powerful signal.

For while he has been hard at work, he has been networking too. Business savvy, good corporate governance, top notch contacts and a pristine image, he has it all.