Peak XV Partners- and TVS Capital-backed wealth and asset management platform Neo Group has appointed veteran investment banker Vikas Khattar to build and lead its investment banking business. According to reports from The Economic Times, Khattar, currently co-head of investment banking and head of equity capital markets (ECM) and the financial services group at Ambit Capital, will build Neo's merchant banking business from the ground up. The move reflects a broader trend of new-age financial services firms branching into investment banking as India's fast-growing wealth management industry fuels demand for capital markets and advisory services.
Khattar, a BITS Pilani and IIM Calcutta alumnus, brings more than three decades of experience across major financial institutions including DSP Merrill Lynch, Citibank, Morgan Stanley, HSBC, Jefferies and Ambit Capital. As reported by The Economic Times, he joined Ambit Capital in 2018, where he built the firm's ECM business. Since then, Ambit has completed more than 250 equity capital markets transactions across initial public offerings, block deals and follow-on public offerings. Notable transactions include the Coal India IPO, BSE IPO, Motherson Sumi's Euro bond issue, Laurus Laboratories' IPO and ICICI Bank's ADR.
According to reports from The Economic Times, Neo Group has applied for a merchant banking licence with the capital markets regulator-Sebi (Securities and Exchange Board of India). The firm is likely to hire a team of bankers to set up the investment banking practice and will also help oversee the larger growth of the firm. Neo Group has been expanding rapidly, having raised ₹350 crore in a funding round led by Peak XV Partners in July, following a ₹550 crore investment from TVS Capital. Valued at ₹10,000 crore, the company became one of the latest financial services unicorns.
As reported by The Economic Times, Neo Group, founded in 2021 by Nitin Jain, also an IIM Calcutta alumnus, managed about ₹1.3 trillion in client assets as of June. The company operates in more than 30 Indian cities and has a presence in the US, employing over 850 professionals, including more than 150 senior wealth advisers. According to Deloitte, assets under management in India's wealth management industry are projected to reach $2.3 trillion by FY29, driven by rising disposable incomes, an expanding base of high-net-worth individuals and increasing financialization.
According to reports from The Economic Times, backed by deep-pocketed investors, new-age firms such as Deserve, Groww, Asset Plus, Centricity and Wealthy are expanding their offerings in an effort to capture a larger share of the market. The expansion comes as India's wealth management industry is growing rapidly, with new-age firms branching into investment banking to capitalize on the fast-growing capital markets and advisory services demand.
