Muthoot Finance to acquire IDBI Mutual Fund

0

Mumbai: Kochi based Muthoot Finance Limited, a leading gold loan NBFC in the country, has entered into a definitive agreement to acquire IDBI Asset Management Limited and IDBI MF Trustee Company Limited paving way for Muthoot Finance’s entry into Mutual Fund Asset Management space. The transaction is expected to be completed by end of February 2020 subject to receipt of necessary regulatory approvals. Upon closing, both IDBI AMC and IDBI MF Trustee Company will become wholly-owned subsidiary companies of MFIN.

Promoted by IDBI Bank in 2010, IDBI Mutual Fund (“IDBI MF”) is one of the profit-making AMCs in the mutual fund space with an AUM approx. Rs. 5,300+ crores. IDBI MF runs 22 schemes with robust AUM across products, geography and investors.

The transaction will be completed pursuant to the Share Purchase Agreement dated November 22, 2019 entered into by and between Muthoot Finance, Sellers and the Target Companies. Upon completion of the transaction, Muthoot Finance Limited will purchase 100% equity shares of IDBI Asset Management Limited and IDBI MF Trustee Company Limited held by the Sellers for a total consideration of Rs. 215 Crores. The transaction is subject to receipt of approval from the regulators including the Securities and Exchange Board of India.

Proposed Transaction has been approved by the Board of Directors of MFIN, Sellers and the Target Companies and is expected to close by end of February 2020 subject to closing conditions and receipt of necessary regulatory approvals.

George Alexander Muthoot, MD of Muthoot Finance said, “IDBI Mutual Fund is a trusted player in the mutual fund space with a steady loyal customer base. At Muthoot, we pride ourselves in venturing into mutual fund space through such an established player. The business objectives and customer-centric approach that we follow within the Muthoot Group is well aligned with the business objectives of the mutual fund industry. We are excited to venture into this new path in the financial services space and we are equally excited to partner with strong, experienced and enthusiastic management team at IDBI Mutual Fund as we embark upon the next level of our journey.”

Kerala Biz News

Share.

Comments are closed.