Some employees in India are stepping up with investments to save the company and their jobs
- Debt-ridden DHFL’s promoters asked its employees to purchase its wealth management arm.
- Swapnil Pawar bought out the India arm of the US-based hedge fund, which he was heading.
- Employees of
Jet Airwaysand Reid & Taylor too tried to take control of their companies.
One such rare case is that of Deewan
Instead of appealing to investors, the company approached its own employees for help who came through. The deal has been closed today, according to a report by Business Standard.
Yet another financial services company employee Swapnil Pawar bought out the Indian arm of the US-based hedge fund, which he was heading.
Pawar who is also the founder of Asqi Advisors, told Business Standard that they intend to set up the company as an
The number of employee groups who are stepping in to save or take over their companies is rising, as is the number of troubled companies.
The employees of the bankrupt clothing label Reid & Taylor India too had attempted to bid for the company. However,
The many employees of grounded airline Jet Airways too had tried to bid for the firm, which too has gone into bankruptcy. However, no deal could be reached as the heavily indebted company eventually went into liquidation.
Most such deals take place in the financial services sector where employees play a large role. However, India has very few stories to tell where employees bailed their companies out.
In 1987, construction major L&T was once a target of a hostile takeover by Reliance Industries headed by Dhirubhai Ambani. Kumar Mangalam Birla was also one of the people who had purchased stake in the construction company, in an attempt to take over his rival in the cement business. As a response, its own employees set up a trust and purchased the shares back and gained control.