Several mutual fund players give IDFC a miss on valuation concerns

Buyers didn't go-ahead with the deal as at valuation of Rs 35 billion, IDFC was looking for an earnings multiple of 65 times its trailing 12-month earnings

IDFC might have found a buyer for its Rs 650-billion mutual fund (MF) subsidiary in the form of KKR-backed Avendus Capital but most industry participants have opted out of the race on valuation concerns. 

According to sources, Mirae AMC and Reliance MF were among those which had earlier evinced interest but didn’t pursue the deal, as they felt IDFC was seeking a steep valuation. Sources say IDFC was holding out for  Rs 35 billion in valuation for the MF arm. This put off buyers as at that valuation, IDFC was looking for an earnings multiple of 65 times its trailing