Mumbai (Maharashtra) [India]: A consortium consisting of Bandhan Financial Holdings Limited, GIC, and ChrysCapital is set to buy IDFC Asset Management Company and IDFC AMC Trustee Company for Rs 4,500 crore.
IDFC Limited said in a statement on Thursday that it has entered into a definitive agreement with the consortium for the deal.
The Bandhan consortium was selected through a highly competitive divestment process which witnessed strong participation from strategic players and financial investors. This is a highly tracked acquisition and will be the largest deal in the Indian asset management industry to date, it said.
“The agreement envisages continuity of the current management team and investment processes at IDFC AMC, helping unitholders benefit from consistency in the high-quality investment approach IDFC AMC is reputed for. This will be supplemented well by Bandhan’s brand as well as GIC’s and CC’s international network and experience which will aid IDFC AMC in further cementing its position in the asset management industry and propel further growth,” IDFC Limited said.
“The acquisition of IDFC AMC provides us with a scaled-up asset management platform, with a stellar management team and a pan India distribution network. IDFC AMC could benefit significantly from the Bandhan brand and continue strengthening its position in the asset management industry,” said Karni S Arha, Managing Director, Bandhan Financial Holdings Limited.
On the consortium partners, Arha said, “We are happy to partner with marquee investors such as GIC & ChrysCapital and are confident that this venture will enhance value for all the stakeholders of Bandhan and IDFC AMC.”
Established in 2000, IDFC AMC manages over Rs 1,15,000 crore of Asset Under Management (AUM) at the end of March 31, 2022 for over 1 million investor folios representing leading institutions, corporates, family offices and individual clients.
Reacting on the deal, Anil Singhvi, Chairman of IDFC Limited, said, “This transaction is a significant milestone in our plan of unlocking value and the consideration demonstrates 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. The Bandhan consortium with its strong brand and resources will further strengthen the distribution of products and improving the overall experience for IDFC AMC’s investors and distributors,” Singhvi added. (ANI)