Market regulator Sebi has approved Hinduja Group firm IndusInd International Holdings to acquire Invesco AMC’s portfolio management services business.
Sebi’s approval is another advancement towards the completion of IndusInd International Holdings Limited’s (IIHL) 60 per cent acquisition of Invesco AMC, as per sources, following which only one final regulatory approval remains after which the transaction will be completed.
They further said that an application for grant of sponsor approval to IIHL is in process and is waiting for Sebi’s green signal, after which the IIHL will proceed with consummation of the transaction.
IIHL already has clearance from the Competition Commission of India (CCI) to acquire 60 per cent shareholding in each of Invesco Asset Management (India) Pvt Ltd and Invesco Trustee Pvt Ltd. It will be holding the investment through its wholly-owned and controlled subsidiary.
The company had earlier bid and emerged as a successful suitor to acquire Reliance Capital Ltd and its subsidiaries that operate in the life insurance, health and general insurance sectors as well as asset reconstruction, research and securities broking. IIHL’s resolution plan has also been approved by the National Company Law Tribunal.
IIHL’s ownership would prove to be beneficial for Invesco to expand into more Indian cities and towns due to the presence of a strong domestic partner.
Invesco Asset Management began its India operations in 2008 with the acquisition of Lotus India Asset Management Company. Since then, it expanded to serve over 1.6 million retail investor folios and over 39,000 enlisted distributors as of April, with more than 70 per cent of its assets under management in the equity and equity-oriented assets.
At present, it is the 5th largest foreign asset manager and the 17th largest domestic asset manager in India with combined onshore and offshore advisory and assets under management of Rs 85,393 crore as of March 31, 2024, and is present in 40 cities across the nation.
