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.

Chirag Madia Mumbai

Whenever there is a merger, the acquirer, along with the assets, takes the existing employees of the acquired fund house

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 necessitated due to LIC’s holding in both LIC AMC and IDBI AMC, which breaches the cross-holding norms. IDBI AMC would likely be taken over by LIC AMC given the latter’s size and parentage,” said a senior official of IDBI AMC.

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First Published: Nov 25 2021 | 6:10 AM IST

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