Hindujas enter MF space with Invesco deal

AFTER RELIANCE Capital, the Hinduja Group has now set its sights on the mutual funds space. The group’s Indusind International Holdings (IIHL) will acquire a 60 per cent stake in Invescoassetmanagementindia.

IIHL, the promoter of India’s fifth-largest private sector lender Indusind Bank, said it has entered into a definitive agreement to form a joint venture with Usbased Invesco. As part of the agreement, the Hinduja Groupbacked firm will acquire majority stakeininvesco’sindiasubsidiary.

Invesco Asset Management India is the fifth 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 85,400 crore.

“Itwasourvisiontotransform IIHL into a BFSI powerhouse. Our endeavour is to reach ‘last home, last investor’ in a transparent and efficient manner,” said Ashok Hinduja, chairman of Indusind International Holdings.

IIHL had recently secured Ncltapprovaltoacquirereliance Capitalanditssubsidiaries,which has businesses in life insurance, health and general insurance, asset reconstruction, and research and securities broking sectors.

The company is in the process of concluding the implementationoftheresolutionplan,though the Insurance Regulatory and Development Authority of India has expressed its reservations over the acquisition,

Hindujagroup’sentryintothe mutual fund industry could heat up competition in the space, which had assets under management worth Rs 54.54 trillion as of February29.theindustryhasseen strong growth over the years, according to data from the industry bodyamfi.invescowillretaina40 percentstakeinthenewlyformed JV, and both IIIHL and Invesco will have sponsor status.