IndusInd International Holdings, the Mauritius-based Investment Holding Company of the Hinduja Group, has entered into an agreement to acquire 60 per cent stake in Invesco Asset Management India for undisclosed amount.

Invesco, the existing promoter, will hold the remaining 40 per cent stake in the joint venture company and both IIHL and Invesco will have sponsor status of the mutual fund house.

With an AUM of ₹85,393 crore, IAMI is the 17th largest domestic asset manager in India and has presence in 40 cities across the country.

Saurabh Nanavati, CEO, Invesco Asset Management India, will continue to lead the new JV along with the existing management team.

While IIHL has distribution network of over 11,000 pan-India touch points and 45 million customer base, Invesco will contribute its portfolio of global products and processes, said both companies in a joint press release on Tuesday.

Founded in 1993 by late SP Hinduja, IIHL recently acquired Reliance Capital and its subsidiaries for ₹9,650 crore through Insolvency and Bankruptcy Code.

Value creation

Ashok Hinduja, Chairman, IIHL said the partnership is another step in the journey of value creation for shareholders and the vision to transform the company into a BFSI powerhouse.

“Our endeavour is to reach ‘last home, last investor’ in a transparent manner and live up to investors’ expectation,” he said.

Moses Harding, CEO, IIHL, said this is the most opportune time to enter the mutual fund business in India as it offers enormous prospects on the back of rising prosperity, investor confidence and favourable demographics.

Andrew Lo, Senior Managing Director and CEO, Invesco Asia Pacific, said the partnership company will continue to expand distribution to serve more domestic investors in India.

Nanavati said a strong domestic partner will significantly increase the JV’s ability to expand into more cities and towns, which are driving industry growth.

IAMI began operations in India in 2008 with the acquisition of Lotus India AMC and has over 39,000 empanelled distributors, with over 70 per cent of its AUM in equity and equity-oriented assets. It also operates an enterprise centre in Hyderabad employing over 1,700 staff.

The mutual fund industry is at an inflexion point with favourable demographics and a rising middle class which will prefer transparent investment products like mutual funds and ETFs.