Invesco could sell as much as 60% of Invesco Mutual Fund with assets under management (AUM) of more than ₹74,000 crore as of March 31. The mutual fund industry’s total AUM stood at ₹54.50 lakh crore as of February end.
Invesco intends to hold 40-49% in the domestic mutual fund subsidiary, said one of the two people cited above. The size of the proposed deal could not be ascertained but the valuation could be lower than a buyout transaction.
Email queries to Invesco and the Hinduja Group went unanswered until the publication of this report.
The intention of selling a majority stake to the Hindujas is to gain access to the banking distribution network, said the first person quoted above. Hinduja Group is the biggest shareholder of IndusInd Bank.
“Invesco wants a domestic partner with a strong network to grow the Indian asset management business further,” said the person quoted above.The plan to buy a majority stake in Invesco Mutual Fund is part of the business house’s strategy to offer all financial services products. The Hinduja Group’s IndusInd International Holdings recently acquired Reliance Capital, previously owned by Anil Ambani. As part of the acquisition, the conglomerate will also own Reliance Nippon Life Insurance Company, which will soon be renamed as IndusInd Nippon Life Insurance.Aasia Enterprises, another group entity, will entirely own Reliance Securities.
If the Hindujas end up buying a stake in Invesco, it will be the first deal in the domestic mutual fund industry in 2024.
In 2023, a consortium led by Bandhan Financial concluded the acquisition of IDFC Mutual Fund for ₹4,500 crore, edging out the Hinduja Group, including Invesco Mutual, which was the other top contender.
Earlier, HSBC Asset Management acquired L&T Investment Management (LTIM) for about ₹3,200 crore, while Sundaram AMC acquired the assets of Principal Asset Management for about ₹340 crore.
