Private equity firm New Silk Route Advisors has bought UK investment group Dawnay Day’s stake in its Indian business, Dawnay Day AV India for about INR 2 Bn (USD 45 Mn). The sale includes Dawnay Day International’s 50% stake in the Indian venture and the employee trust’s 25% holding as well. The deal includes only the stock brokerage and third party distribution business. It does not include its financial research arm, Dawnay Day AV Analytics Pvt. Ltd and Dawnay Day Hotels India Pvt. Ltd, a fully owned subsidiary of Dawnay Day International. Alok Vajpeyi, Vice Chairman and Managing Director of Dawnay Day AV Financial Services has also sold his 25% stake to the foreign private equity investor.

About 40% of the funds will be used to retire a Dawnay Day AV loan from HSBC Holdings Plc; and another 40% will go towards repaying the preferential capital issued by Dawnay Day International. Dawnay Day is mulling sale of many of its assets as it needs to raise cash for its stricken empire quickly.