Explorer

Bandhan Financial, ChrysCapital & GIC Team Up To Acquire IDFC Mutual Fund For Rs 4,500 Cr

The Bandhan consortium was selected through a highly competitive divestment process which witnessed strong participation from strategic players and financial investors.

Mumbai: IDFC Limited (IDFC) and a consortium comprising Bandhan Financial Holdings Limited (BFHL), GIC (GIC) and ChrysCapital (CC) have entered into a definitive agreement to acquire IDFC Asset Management Company Limited (IDFC AMC) and IDFC AMC Trustee Company Limited from IDFC Limited, for a consideration of INR 4,500 crore subject to receipt of necessary regulatory approvals and customary closing conditions.

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 such deal in the Indian asset management industry to date.

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.

Anil Singhvi, Chairman of IDFC Limited commented: "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 distribution of products and improve overall experience for IDFC AMC’s investors and distributors."

Karni S Arha, Managing Director, Bandhan Financial Holdings Limited said: "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. 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. Also, 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."

Choo Yong Cheen, Chief Investment Officer of Private Equity, GIC said: "GIC is pleased to continue our partnership with the Bandhan group and ChrysCapital through this new investment in IDFC AMC. We believe IDFC AMC is in a favourable position to capture the strong secular growth in the currently underpenetrated Indian asset management industry."

Ashish Agarwal, Managing Director, ChrysCapital said: "ChrysCapital is very excited to partner with BFHL and GIC to buy out IDFC AMC, a quality platform with a seasoned management team. The Company is well poised for the future with strong industry tailwinds including increasing financialization of savings and a growing equity culture amongst the younger generation." 

View More
Advertisement
Advertisement
25°C
New Delhi
Rain: 100mm
Humidity: 97%
Wind: WNW 47km/h
See Today's Weather
powered by
Accu Weather
Advertisement

Top Headlines

India Summons Canadian Official On Allegations Against Amit Shah, Conveys 'Strong Protests'
India Summons Canadian Official On Allegations Against Amit Shah, Conveys 'Strong Protests'
Four Workers Killed After Being Hit By Train In Kerala's Palakkad
Four Workers Killed After Being Hit By Train In Kerala's Palakkad
Pawar Family Hosts Separate Diwali Events For 1st Time As Ajit, Sharad Gear Up For Maharashtra Polls
Pawar Power Split: Pawar Family Hosts Two Diwalis For 1st Time As Ajit, Sharad Gear Up For Polls
One Terrorist Killed In Encounter In Jammu And Kashmir's Srinagar
One Terrorist Killed In Encounter In Jammu And Kashmir's Srinagar
Advertisement
ABP Premium

Videos

Diwali 2024: Akshardham Air Quality Deteriorates to Hazardous Levels Post-October 30Bihar's Air Turns Toxic: Fireworks Lead to Hazardous AQI Across Multiple DistrictsDiwali 2024: Fireworks Leave Delhi NCR and Jaipur Choking with Hazardous Air QualityDiwali 2024: Fireworks Turn Delhi's Air Toxic, Breathing Becomes a Struggle | ABP News

Photo Gallery

Embed widget