Sebi approves acquisition of Invesco AMC’s PMS business unit by IIHL
Ownership of IIHL will enable Invesco to expand into more Indian cities and towns through the presence of a strong domestic partner.
Capital markets regulator Sebi has approved IndusInd International Holdings, a Hinduja Group company, to acquire the asset management business of Invesco AMC.
According to sources, Sebi’s approval marks completion of a crucial phase in the acquisition of 60 per cent stake in Invesco AMC by IndusInd International Holdings Limited (IIHL). Only one final approval from the regulator is now required before the transaction can be completed.
An application is pending to get the green light from the Securities and Exchange Board of India for granting sponsorship approval to IIHL. Upon receipt, IIHL will proceed with the completion of the transaction, sources said.
The Competition Commission of India (CCI) has already given IIHL approval to acquire 60 percent stake in Invesco Asset Management (India) Pvt Ltd and Invesco Trustee Pvt Ltd.
IIHL will hold the investment through its wholly owned subsidiary.
The company had earlier bid and was a successful candidate for the acquisition of Reliance Capital Ltd and its subsidiaries operating in the life insurance, health insurance and general insurance sectors as well as asset reconstruction, research and securities brokerage. IIHL’s resolution plan has been approved by the National Company Law Tribunal.
Ownership of IIHL will enable Invesco to expand into more Indian cities and towns through the presence of a strong domestic partner.
Invesco Asset Management began its Indian operations in 2008 with the acquisition of Lotus India Asset Management Company. Since then, it has grown to serve over 1.6 million retail investor portfolios and over 39,000 panelized distributors (as of April), with over 70 percent of its assets under management in equities and equity-focused assets.
It is the fifth largest foreign asset manager and the seventeenth largest domestic asset manager in India, with a combined onshore and offshore advisory and assets under management of Rs 85,393 crore as of March 31, 2024 and a presence in 40 cities in the country.
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First publication: Aug 30, 2024 | 5:52 PM IST