Bandhan-led consortium to acquire IDFC MF for Rs 4,500 cr

A consortium of Bandhan Bank's parent Bandhan Financial Holdings (BFHL), private equity firm ChrysCapital and Singapore's sovereign fund GIC will acquire IDFC Asset Management Company for Rs 4,500 crore.

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

The deal envisages continuity of the current management team and investment processes at IDFC AMC. 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, IDFC said in a statement on Wednesday.

Established in 2000, IDFC AMC is India's 9th largest asset manager by Asset Under Management (AUM) , with an on‐the‐ground presence in over 50+ cities and investors in 750+ cities and towns across the country. It manages over Rs 1,15,000 crore of AUM at the end of 31 March 2022.

Anil Singhvi, chairman of IDFC 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."

Karni S Arha, managing director, Bandhan Financial Holdings said: "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."

Bandhan Financial Holdings is the promoter and an associate company of Bandhan Bank. It holds about 40% stake in Bandhan Bank.

Shares of IDFC rose 3.64% to Rs 68.40 while Bandhan Bank ended almost flat at Rs 315.05 on Wednesday.

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