IDBI assets manager to merge with LIC MF, clear path to latter's mega IPO

Following the merger, IDBI AMC, which currently has assets under management (AUM) of Rs 4,344 will cease to exist.

IDBI Asset Management Company (AMC) is all set to merge its assets with Life Insurance Corporation of India (LIC) AMC. The talks are in the final stages and a decision will be taken ahead of the mega initial public offering (IPO) of LIC, said people in the know.

Following LIC’s acquisition of IDBI Bank, the former has become a sponsor of two AMCs, which is not allowed under the mutual fund regulations of the Securities and Exchange Board of India (Sebi). This issue may have acted as a roadblock for getting regulatory clearance for the LIC IPO.

“This merger of course is