HSBC AMC acquires L&T Finance's mutual fund unit for Rs 3,200 cr

The divestment of mutual fund business is in line with the strategic objective of L&T Finance Holdings of unlocking value from its subsidiaries to strengthen its balance sheet, says the company

L&T Finance Holdings Limited (LTFH) and HSBC Asset Management (India) Private Limited on Thursday entered into a definitive agreement whereby HSBC AMC shall acquire L&T Investment Management Limited, a wholly-owned subsidiary of LTFH, which is the investment manager of L&T Mutual Fund, for $425 million (approximately Rs 3,200 crore).

The transaction is subject to the requisite regulatory approvals. Both LTIM and HSBC AMC will work to ensure that there will be continuity of services to their investors and counter-parties in the interim. 

"The divestment of mutual fund business is in line with the strategic objective of L&T Finance Holdings

of unlocking