Head of origination is a title Merrill uses for what other banks typically refer to as head of investment banking. In his new role, Bajpai will take over the day-to-day management of the investment banking operations from Patti McLaughlin, who has been spearheading this part of the business for the past year. McLaughlin will continue to serve as vice chairman of India origination at DSP Merrill Lynch, as the Indian unit is named, but from now on she will focus on key senior client relationships.
The separation of these two key roles comes after the bank has lost several key people from its Indian team over the past 12 months as the competition for talented investment bankers in India heats up. However, sources say office politics have also played a role in at least some of these departures. Bajpai, whose appointment is effective immediately, will report directly to Damian Chunilal, head of Pacific-Rim origination as well as chief operating officer for the same region, and to DSP Merrill Lynch chairman Hemendra Kothari, the former joint venture partner who still holds 10% of the business.
The Indian unit has shown significant momentum since Merrill bought control of the joint venture it had with Kothari in December 2005 and, according to the source, the business is heading for a record year in terms of earnings. An internal e-mail announcing Bajpai's appointment, stated that the bank will continue to expand the quality and breadth of its investment banking footprint. The e-mail said the bank needs to capitalise on the potential of its existing platform and establish ôgreater global connectivityö for its clients.
Bajpai has a wealth of investment banking experience to draw from for this position, having spent the past 20 years at the bank. During that time he has held a number of senior positions in New York, Singapore, Hong Kong and London.
In the 1990s, he was a key member of MerrillÆs Indian investment banking team. Putting further emphasis on the global integration theme, Bajpai will maintain one foot in Europe as he will continue in his current position as chief operating officer of origination for Europe, Middle East and Africa (EMEA).
Merrill has been involved as a bookrunner in several of the international equity offerings from Indian issuers so far this year, including ICICI BankÆs record $4.9 billion follow-on and the $2.25 billion IPO for real estate developer DLF. It also acted as an adviser for the merger between IndiaÆs largest and second largest petrochemicals companies, Reliance Industries and Indian Petrochemicals Corporation (IPCL).
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