IDFC Ltd has determined to promote IDFC Asset Management Company and IDFC AMC Trustee Company Ltd to a consortium comprising Bandhan Financial Holdings (BFHL), GIC and ChrysCapital for a consideration of Rs 4,500 crore.
The consortium was chosen after a aggressive divestment course of that noticed participation from strategic gamers and monetary traders. “This will be the largest deal in the Indian asset management industry to date,” IDFC stated.
Set up in 2000, IDFC AMC manages over Rs 1,15,000 crore of asset beneath administration (AUM) as of March-end for over 10 lakh investor folios representing main establishments, corporates, household workplaces and particular person shoppers. IDFC AMC is India’s ninth largest asset supervisor by AUM, with presence in over 50 cities and traders in 750 cities and cities nationwide.
The deal envisages continuity of the present administration crew and funding processes at IDFC AMC, serving to unitholders profit from consistency within the funding strategy of IDFC AMC.
IDFC Ltd chairman Anil Singhvi stated: “This transaction is a significant milestone in our plan of unlocking value and the consideration demonstrates the strong position of IDFC AMC in the Indian mutual fund space. We have achieved signing within 6 months of the board’s decision to divest, which further demonstrates IDFC Board’s commitment to consummate the merger of IDFC Limited and IDFC Financial Holding Company with IDFC First Bank.”
He added, “The Bandhan consortium with its strong brand and resources will further strengthen distribution of products and improve overall experience for IDFC AMC’s investors and distributors.”
BFHL is the promoter and an affiliate firm of Bandhan Bank. BFHL holds a 40 per cent stake in Bandhan Bank.
BFHL MD Karni S Arha stated: “Bandhan has always focused on financial inclusion and making formal financial services available to the masses. We believe that the asset management industry will be one of the fastest growing segments in the Indian financial services industry and hence has been identified as a key vertical in our future growth plans.”
